Sustainability Standards and the 2026 Reporting Landscape.
Early in 2025, Katie Galloway, Stewardverse Strategies’ Sustainability and Client Services Lead, wrote Sustainability Reporting Simplified for Business. This article takes Galloway’s article a step further to examine the sustainability reporting landscape of 2026.
Last month, I joined my colleague Katie Galloway and hundreds of others globally in completing the Global Reporting Initiative (GRI) Certified Sustainability Professional Program. The program provides in-depth training on the GRI standards, human rights, and sustainability reporting. GRI is widely considered the gold standard for sustainability reporting, examining an organization's material impact on the economy, environment, and society. Today, 95% of the largest 250 companies utilize the GRI standards.
State of Sustainability in Business Today.
With recent trends showing businesses rolling back social initiatives related to Diversity, Equity, and Inclusion, enacting return-to-office mandates, and managing broad revenue concerns, many leaders have shifted their priorities away from ESG to other issues impacting their balance sheets. This shift begs the question: “Why should we still care about sustainability reporting?”
GRI acknowledges that companies, big and small, must navigate competing demands from stakeholders, partners, and governments to determine what to report, all while balancing obligations to remain in compliance with state and federal laws. Furthermore, because of differing levels of sustainability awareness, company sizes, and organizational structures, there is no one-size-fits-all approach to sustainability reporting. This lack of uniformity creates uncertainty and inconsistency across industries. When the broader corporate landscape is becoming quieter about its sustainability initiatives, often referred to as “greenhushing”, it can lead to the impression that sustainability is no longer a priority.
Regardless of fluctuating business trends, companies that remain consistent in their sustainability initiatives will ultimately set themselves apart. As Sherry Madera, CEO of CDP, an industry leader in environmental disclosure, noted, “Companies don’t disclose because they have to; they disclose because there is a business reason to do so.” Investors frequently analyze climate risk, supply chain resiliency, and the financial penalties associated with failing environmental compliance, and the companies that maintain their sustainability commitments will ultimately create a competitive advantage and outperform those that have walked back their programs. Furthermore, research consistently shows that workers, especially younger generations, expect their companies to demonstrate progress and communicate the positive impacts they’re making on people and the planet.
Businesses that remain committed to sustainability will continue to find that their companies do well by doing good. When leaders examine their company’s data, resource use, and overall environmental footprint through the lens of sustainability, hidden efficiencies, cost savings, new product ideas, or revenue streams emerge through a better understanding of operations. These benefits remain, regardless of the trends of corporate sustainability.
Alignment on the Horizon.
While some organizations have pulled back on sustainability, the push to align global standards has achieved major successes. For instance, the European Sustainability Reporting Standards (ESRS) were developed to closely align with GRI to reduce additional disclosures for businesses already reporting under GRI. Similarly, the United Kingdom’s upcoming Sustainability Disclosure Standards (SDS) are integrated with the International Sustainability Standards Board (ISSB) framework.
These international frameworks directly impact non-EU and UK companies, and the list of affected businesses will continue to grow. Even in the US, where federal compliance laws remain at a standstill, such as the Securities and Exchange Commission’s Rescission of Climate-Related Disclosure Rules, California’s SB 253 and SB 261 will impact thousands of businesses in 2026. The initial reporting deadline for SB 253, which requires Scope 1, Scope 2, and Scope 3 greenhouse gas emissions reporting in strict conformance with the GHG Protocol, is August 10, 2026.
Navigating the Landscape.
Reporting on your business’s biggest impacts is the best starting point. A basic materiality assessment that identifies primary impacts on stakeholders, the environment, and industry narrows the scope of reporting. It isn’t about reporting everything; sustainability reporting is about capturing the most impactful aspects of a business's operations.
To begin assessing your organization's impact, consider these foundational questions:
What industry does your organization operate in?
Who are the organization's primary stakeholder groups?
How large is your organization?
What other groups, vendors, or individuals does your organization rely on in its supply chain?
What specific resources does your organization rely on for key operations?
What are the potential human rights violations that could occur within your organization’s operations and supply chains?
What are peer organizations performing in the sustainability space?
How does your organization interact with local communities in your areas of operation?
While this is not an exhaustive list, it serves as a framework to map how an organization interacts with stakeholders and the environment, painting a clearer picture of both negative and positive impacts.
Long-Term Resilience.
While political and corporate trends will continue to fluctuate, the underlying regulatory and economic gravity is pulling toward mandatory, standardized disclosure. Organizations that view sustainability as central to long-term business resilience will pull ahead of competitors. Furthermore, they will save significant time and resources when mandatory disclosures eventually hit.
By starting small and understanding your organization’s holistic impact on stakeholders, business partners, resource consumption, and the local community, reporting becomes less of an ominous burden. Instead, it can serve as a powerful vehicle for telling your business’s unique story while promoting transparency and accountability.
