For years, sustainability has been dominated by target setting, roadmaps, and strategic visions. 2026 marks a turning point : sustainability is moving decisively into operational execution . The focus is shifting away from defining ever more ambitious goals and toward integration, steering, and resilience . Companies that embed sustainability into everyday processes, decision-making, and value chains will be better positioned to navigate an increasingly volatile environment. Key Sustainability Trends for 2026 Biodiversity & Circular Economy The circular economy is evolving from an efficiency topic into a strategic lever for biodiversity . Circular models reduce resource consumption, ease pressure on ecosystems, and strengthen long-term resilience across value chains. Biodiversity is becoming a decisive factor for business models, investments, and regulation. Product Transparency & Digital Product Passports (DPP) Product transparency is becoming the new standard. Digital Product Passports (DPPs)  consolidate structured information on product origin, materials, sustainability performance, and lifecycle data. They build trust, increase circularity, and reduce greenwashing risks—while regulatory requirements make them increasingly mandatory. Voluntary Reporting After years of data overload, a clear shift is emerging: less volume, more relevance . Companies are focusing on targeted, voluntary reporting with real strategic value. Material topics take center stage—supporting stronger management decisions, clearer communication, and greater credibility. Climate Adaptation, Decarbonisation & Net Zero The focus is moving from net-zero ambitions to concrete implementation . Emissions reduction across Scope 1–3 is becoming operationally embedded, while physical climate risks elevate resilience to a management priority. Climate strategies are increasingly linked to investment, risk, and transformation planning. Digitalisation & AI Digital tools and AI are becoming key enablers of sustainability . They support automated data collection, advanced analytics, and integrated steering—across CSRD, DPP, and Product Carbon Footprints. Transparency, efficiency, and scalability are finally achievable at scale. Diversity, Equity & Inclusion (DEI) DEI is moving beyond isolated initiatives toward structural integration into leadership, culture, and governance . Authentic inclusion, psychological safety, and fair structures strengthen employee retention and trust in leadership—key foundations for resilient organisations. Our Take 2026 will define who truly manages sustainability. The differentiator will not be the boldest targets, but the ability to translate sustainability into operational reality—making organisations more resilient, steerable, and future-proof.

When you buy cereal today, you can see at a glance: Nutri-Score A – sounds healthy. But what does that have to do with sustainability? This is exactly why the Product Environmental Footprint (PEF)  was developed: an EU-developed life cycle assessment framework that makes the environmental impacts of products measurable – from raw materials, production, and transport to disposal. The Problem In a life cycle assessment, different environmental impacts are recorded, such as climate change, water use, land use, particulate matter, or ozone depletion – each in its own units like kilograms, cubic meters, or micrograms. This not only makes it difficult to compare results but also to communicate them clearly and fairly. Without a standardized evaluation logic, environmental communication remains fragmented: Companies report what they can measure, but not what is comparable. Consumers and buyers see numbers, but no context. Sustainable decisions become gut decisions. This is where the PEF Single Score comes in The PEF Single Score  translates different environmental impacts into a normalized and weighted overall value – based on scientifically grounded impact categories and societal relevance. The PEF Single Score as a guide for sustainability: ✅ The PEF Single Score allows simple benchmarking between products. ✅ It supports clear and understandable communication of sustainability. ⚠️ At the same time, there is a risk that important details are lost due to simplification. What product labels could look like Within the framework of the ESPR  and the planned Product Passport , product labels based on the PEF Single Score are currently being considered. Early studies have already examined how such labels could be designed and what impact they might have on consumers and companies.

The European Sustainability Reporting Standards (ESRS) are currently undergoing a revision aimed at one key goal: fewer data points, reduced redundancies, and greater clarity  for companies. The new exposure drafts show significant simplifications  across all social standards. S1-4 – All social standards For policies relating to human rights and alignment with the UNGP and the OECD Guidelines for Multinational Enterprises, eight data points from the four social standards were combined into a ‘ human rights policy ’ in ESRS 2 for the four stakeholder groups concerned. The indicator relating to serious human rights violations  was combined into a single indicator that applies to all four social standards, and the scope of application for serious human rights violations was revised to create a clearer definition ( S1-16, S2-3, S3-3, S4-3 ).   S1 – Own workforce Reduction of data points by 53 % and a reduction in total word count by 67 % . Definition of ‘significant employment’ in S1-5  adjusted: A country is now considered significant if it has 50+ employees and is among the top 10 countries in terms of number of employees. Several items have been removed from S1-6  (S1-5 in the draft), including gender distribution among employees with non-guaranteed hours, number of departures during the reporting period, and voluntary breakdowns (e.g. permanent/fixed-term by region). Non-EU ‘adequate wages’ redefined in S1-10: priority given to statutory/collective agreement minimum wages according to ILO, otherwise living wage estimates. The data point ‘proportion of employees taking family-related leave’ has been removed from S1-14 .   S2 – Workers in the value chain Reduction of data points by 60 % and reduction of total word count by 75 % . In the former S2-3 , information on the timing, type and frequency of labour involvement in the value chain has been removed and is now voluntary. Voluntary information on confidentiality, anonymity, feedback and detailed criteria has been deleted/moved to NMIG; S2-3  now only refers to UNGP* criteria and allows cross-referencing to G1-1 . In S2-4 , detailed information on target measurement has been deleted; the new focus is on the involvement of workers, their representatives or credible proxies in effectiveness testing and the derivation of improvements.   S3 – Affected communities Reduction of data points by 62 % and a reduction in total word count by 73 % . The previous five main categories of Disclosure Requirements (DRs) have been consolidated into four DRs  (policies, stakeholder engagement, measures and targets). Engagement, grievance mechanisms and remediation (previously S3-2 and S3-3) have been combined into one DR ( S3-2 ) to avoid repetition and make reporting more coherent. Redundant data points  have been removed, simplified in some places or moved to NMIG . S4 – Consumers and end users Reduction of data points by 64 % and a reduction in total word count by 79 % . The previous five main categories of disclosure requirements (DRs) have been consolidated into four DRs  (policies, stakeholder engagement, measures and targets). Engagement, grievance mechanisms and remediation (previously S4-2 and S4-3) have been bundled into one DR ( S4-2 ) to avoid repetition and make reporting more coherent. Redundant data points  have been removed, simplified in some places or moved to NMIG . *NMIG = non mandatory implementation guidance Conclusion The ESRS Exposure Drafts 2025 make one thing clear: less is more. Companies will benefit from simplified disclosure requirements, clearer structures, and fewer data points , while gaining flexibility  in choosing what to report. At the same time, this may reduce comparability and transparency . The takeaway for companies : focus on material topics, ensure thorough documentation, and start preparing for the new standards early.

The European Sustainability Reporting Standards (ESRS) are currently undergoing a revision aimed at one key goal: fewer data points, reduced redundancies, and greater clarity  for companies. The new exposure drafts show significant simplifications  across the governance standard. G1 G1-1, G1-2, G1-3  were critically reviewed and either removed (G1-3 in its previous form) or reorganized in line with the new structure. G1-3 was restructured in particular: G1-3 , previously ‘Prevention and detection of corruption and bribery,’ has been deleted to reduce detailed requirements for narrative disclosures (disclosure requirements have been partially moved to ESRS 2, NMIG or other paragraphs in G1). G1-3  has now been changed to ‘Targets related to business conduct’ to ensure consistency with other topic standards. Disclosures on key figures in G1-4, G1-5, G1-6  remained largely unchanged, simplified in some places or moved to NMIG. *NMIG = non mandatory implementation guidance Conclusion The ESRS Exposure Drafts 2025 make one thing clear: less is more. Companies will benefit from simplified disclosure requirements, clearer structures, and fewer data points , while gaining flexibility  in choosing what to report. At the same time, this may reduce comparability and transparency . The takeaway for companies : focus on material topics, ensure thorough documentation, and start preparing for the new standards early.

The European Sustainability Reporting Standards (ESRS) are currently undergoing a revision aimed at one key goal: fewer data points, reduced redundancies, and greater clarity  for companies. The new exposure drafts show significant simplifications  across all environmental standards. E1 – Climate-Related Disclosures: Clearer, More Concise, More Flexible Changes in the area of climate action and risks are particularly significant, with data points reduced by 53%  and total text length by 65% . E1-1 Transition Plan Disclosure requirements regarding transition plans have been simplified and clarified. Improved structure: starting with the identification of IROs (E1-2), followed by assessment of resilience to climate risks (E1-3). E1-2 Climate-Related Risks and Scenario Analysis Disclosure has been significantly simplified, focusing on information relevant for assessment. Companies should disclose the key elements of their climate risk assessment methodology—however, a scenario analysis is not mandatory for all. E1-3 Resilience to Climate Change Wording has been aligned with IFRS S2.22 and redundant sections removed. E1-4 Climate-Related Concepts Previously E1-2. Descriptions of policies on climate impacts, risks & opportunities have been moved to ESRS 2. Shifts and simplifications aim to avoid redundancies and improve readability. E1-5 Climate-Related Actions and Resources Previously E1-3. No major content changes; primarily reorganization and streamlining. E1-6 Climate-Related Targets Previously E1-4. Focus on absolute GHG reduction targets, alignment with system boundaries and the 1.5 °C goal. Prohibition of CO₂ removals, credits, and avoided emissions for target achievement remains. Overall, fewer data points and more flexibility—but reduced comparability and transparency. E1-7 Energy Consumption and Energy Mix Previously E1-5. Disclosure requirements simplified and content streamlined, but core content remains unchanged. Information on high-impact sectors has been removed. E1-8 Gross GHG Emissions (Scope 1, 2, 3) Previously E1-6. Simplification in defining company boundaries (financial control approach). GHG intensity per net revenue removed. Disclosure requirements streamlined, redundant paragraphs removed; core information remains. E1-9 GHG Removals and Projects to Reduce GHGs via CO₂ Certificates Previously E1-7. Content on CO₂ removals in the value chain and CO₂ certificates outside the value chain has been clarified and better structured. Some complex requirements removed. E1-10 Internal CO₂ Price Previously E1-8. Internal CO₂ price disclosures streamlined, retaining key data points; additional requirements removed for simplification. E1-11 Expected Financial Effects of Significant Physical and Transition Risks and Potential Climate-Related Opportunities Previously E1-9. E2 to E5: Focusing on the essentials The trend of fewer data points, shorter text length, and simplified requirements continues across the other environmental standards. E2 – Pollution Data points reduced by 61%  and total text length by 68% . Previous data point “Disclosure requirement in connection with ESRS 2 IRO-1” removed. Disclosure requirements simplified, redundant sections removed, content streamlined to align with main content of E2-4 (air, water, and soil pollution). “Expected financial impacts” (previously E2-6) removed; now addressed centrally in ESRS 2 SBM‑3. E3 – Water Data points reduced by 70%  and total text length by 82% . The term “marine resources” removed from the standard and its subtopics. Disclosure requirements shortened and restructured for clarity and consistency. Total water withdrawal and discharge, previously optional and in AR, now explicitly mandatory. “Expected financial impacts” (previously E3-5) removed; addressed centrally in ESRS 2 SBM‑3. E4 – Biodiversity & Ecosystems Data points reduced by 78%  and total text length by 78% . LEAP guidance removed due to methodological challenges. Companies decide which biodiversity metrics (land-use change, invasive species, species/ecosystem condition) are material. Disclosures on biodiversity-sensitive areas remain despite stakeholder criticism. “Expected financial impacts” (previously E4-6) removed; addressed centrally in ESRS 2 SBM‑3. E5 – Resource Use & Circular Economy Data points reduced by 60%  and total text length by 72% . Disclosure focus on “key” products and services to simplify data collection. Disclosures reduced and shortened to simplify difficult-to-define points, such as product recyclability. Two new data points regarding critical and strategic raw materials and wastes of unknown final fate. “Expected financial impacts” (previously E5-6) removed; addressed centrally in ESRS 2 SBM‑3. * NMIG = non mandatory implementation guidance Conclusion The ESRS Exposure Drafts 2025 make one thing clear: less is more. Companies will benefit from simplified disclosure requirements, clearer structures, and fewer data points , while gaining flexibility  in choosing what to report. At the same time, this may reduce comparability and transparency . The takeaway for companies : focus on material topics, ensure thorough documentation, and start preparing for the new standards early.

Sustainability is more than a trend – it’s a promise. But how can you make sure your messages aren’t perceived as greenwashing ? As part of the Sustainability Week of the Vienna Chamber of Commerce and Industry , we invite you to join our free online webinar . Together with Martina Stranzinger-Maier  from PHH Attorneys at Law , we will provide practical insights on how to shape your sustainability communication in a strategic, authentic, and legally compliant way. Event Details Date:  3 September 2025 Time:  1:00 PM CEST Location: Online Cost:  Free participation What you will learn In this webinar, you will discover how to: Identify and avoid greenwashing Communicate sustainability activities effectively to your target audience Ensure your advertising with Green Claims  meets legal requirements Correctly apply sustainability labels and certification systems Who should attend? This webinar is designed for anyone who wants to use sustainability strategically , communicate it authentically , and implement it legally securely  – from marketing and communications professionals to sustainability managers and business leaders. Registration Participation is free of charge, but registration is required. 👉  Register now for the webinar About the Speakers Julien Pezet – Senior Consultant at unfold consulting, specializing in ESG strategy, reporting, and sustainability communication. Martina Stranzinger-Maier  – Expert in Green Claims, competition, and advertising law at PHH Attorneys at Law.

The revised ESRS Exposure Drafts  ( European Sustainability Reporting Standards ) introduce significant changes in sustainability reporting. The goal: to make the standards clearer, leaner, and more practical. The new ESRS Exposure Drafts are open for public consultation until September 29, 2025 . Now is the right time for companies to familiarize themselves with the proposed changes. This article provides a concise overview — structured around the general changes , and the key updates in ESRS 1 – General Requirements  and ESRS 2 – General Disclosures . Photo by Alexey Larionov General Changes – A Clear Shift Towards Simplification The overarching changes bring noticeable relief to companies: 57% reduction in mandatory datapoints . 55% reduction in total length of the standards . Introduction of “Fair Presentation”  as a central principle – improving alignment with international standards like IFRS ( International Financial Reporting Standards). ARs ( Application Requirements )  have been consolidated at the end of each chapter. Companies now also enjoy greater flexibility  in their reporting approach: The previously mandatory list of material topics (AR 16) has become an illustrative list  in the new Appendix A . Sub-sub-topics  have been entirely removed. Sector-specific standards  are postponed for now.   Key Updates from ESRS 1 – General Requirements ESRS 1  defines the fundamental principles for sustainability reporting. It has been significantly streamlined, with the following highlights: Double materiality with more flexibility: Companies may report material topics either at the level of IROs ( Impacts, Risks & Opportunities ) or at the topic level – whichever provides more relevant information. Focused over exhaustive analysis: A full analysis of the entire value chain is not required. A risk-based, reasonable approach is sufficient. Subsidiaries with low financial relevance: These can be excluded from sustainability reporting – unless they present material IROs for the group. Simplified treatment of value chain data: Companies may use estimates, industry proxies, or average values instead of collecting detailed partner data, without clear prefrence for the report. M&A flexibility: Reporting on acquisitions or disposals during the reporting year can be postponed to the next year – provided material IROs are disclosed.   Key Updates from ESRS 2 – General Disclosures ESRS 2  defines cross-cutting disclosure requirements (Governance, Strategy, IROs). It has also been revised for clarity and simplicity: Removal of Appendix C requirements: Most detailed disclosures regarding governance and strategy are removed. A few exceptions remain (e.g., climate resilience). Aggregated disclosure is allowed: Companies can disclose KPIs, policies, targets, or actions once, as long as it’s clear which topics they relate to – cross-referencing is allowed. More content moved to the voluntary section: Datapoints such as board composition or risk management processes are now part of the Non-Mandatory Implementation Guidance ( NMIG ) – and therefore optional.   What Does This Mean for Your Business? The new drafts deliver a clear message: less prescription, more accountability . Companies can now design their reports in a more strategic, compact, and practical  way — but they must make well-reasoned decisions. Now is the time to : Rethink your double materiality approach Update your reporting structure Leverage new flexibility for streamlined reporting

The EU is tightening regulations – and the iron and steel industry is in the spotlight. With the new Ecodesign for Sustainable Products Regulation (ESPR) , the EU is, for the first time, targeting specific product groups – including steel & iron products. For many companies, this means: You may be affected sooner than expected. Photo by Ricardo Gomez Angel What is the ESPR? The ESPR replaces the previous Ecodesign Directive and will soon extend its scope to nearly all physical products. The goal is to extend the lifespan of products, reduce their emissions, and enhance their reusability and recyclability. For iron and steel products, metal sheets, components, semi-finished or intermediate goods, this means: Mandatory disclosure of product data  – such as recycled content, carbon footprint, critical raw materials, or dismantlability Introduction of a Digital Product Passport (DPP)  – with structured digital information across the entire supply chain Ecodesign requirements  for durability, reparability, and resource efficiency Responsibility for supply chain data  – including from non-EU suppliers and imports In the steel industry, where many pre-products and sub-suppliers are typically involved, this can pose a significant (data) challenge. What does this mean for your company? If you manufacture, process, or trade products made of iron or steel, you may soon be required to: Provide a Digital Product Passport (DPP)  – with information on carbon footprint, recycled content, reparability, etc. Ensure transparency across the supply chain  – including the provision of CO₂ and material data from third countries Comply with Ecodesign requirements  – for product lifespan, recyclability, and material efficiency Conduct life cycle assessments and provide environmental performance data  – as a basis for both regulatory and market expectations This leads to an important question for many businesses: Which of our products are affected – and to what extent? Our advice: Gain clarity now Those who assess their portfolio early can respond in a t argeted and cost-efficient way. And: the sustainability data you gather for the ESPR will also support your compliance with CSRD, CBAM, and client requests. With the right approach, synergies can be leveraged effectively.

The Digital Product Passport is one of the major innovations of the Ecodesign for Sustainable Products Regulation  (ESPR). It digitizes information about products, components, and materials and aims to promote sustainability, circularity, and legal compliance. What Is the Digital Product Passport? The Digital Product Passport (DPP) is a central element of the EU’s new sustainability policy. It is designed to make relevant product information digitally available – such as data on materials, carbon footprint, reparability, recyclability, and origin. The goal is to increase transparency across the entire value chain. Where Will the DPP Be Used? In addition to the ESPR, the DPP will also be used in other areas and under other regulations. Construction Products Regulation (CPR) The DPP is also being introduced in the construction sector. Manufacturers will in the future be required to provide digital information about emissions – previously communicated in Environmental Product Declarations (EPDs) – as well as about ingredients and product lifespan. Critical Raw Materials Act (CRMA) The DPP will also be relevant for products containing critical raw materials such as lithium, cobalt, or rare earth elements. Companies must document origin, recyclability, and supply chain risks. The goal is to ensure a sustainable and resilient supply of strategic materials. Chemicals Strategy for Sustainability (CSS) As part of the EU’s chemical policy, there are discussions on how the DPP can be used to increase transparency around hazardous substances in products. This concerns, for example, PFAS, flame retardants, or solvents. The DPP could help facilitate substitution and safety assessments in this context. Outlook: What Can Companies Expect From the DPP? The introduction of the DPP will begin gradually from 2026, depending on the product group. A technical standard for the DPP is currently being developed and is expected to be finalized by the end of 2025. As part of the CIRPASS 3 project, scalability is being tested through 13 pilot projects across four sectors: textiles, electronics & electrical devices, tires, and construction products. 2026–2027 : Scaling and cross-sectoral rollout are planned. From 2027 : Broad application of the DPP according to the ESPR is expected. The Digital Product Passport could become a key lever for sustainability and transparency in Europe. It combines circular economy, raw material security, and chemical safety in one digital system. Those who invest early secure compliance advantages and strengthen their competitiveness.

The most widely used metric is the Product Carbon Footprint  (PCF), especially in the corporate context, but it is also increasingly appearing in the media across various fields. In contrast, Life Cycle Assessments  (LCAs) are less well known. What Is a Life Cycle Assessment? A Life Cycle Assessment  (LCA) is a comprehensive method for evaluating the environmental impacts of a product  throughout its entire life cycle – from raw material extraction to disposal ( cradle-to-grave ). It considers numerous environmental factors: energy consumption, CO₂ emissions, as well as other environmental effects like acidification, water scarcity, land use, and more. It can be calculated according to various standards. The most commonly applied standard is ISO 14040 / ISO 14044 . This also forms the basis for other standards such as the Product Environmental Footprint (PEF)  method or EN 15804 – Sustainability of construction works – Environmental Product Declarations – Core rules for the product category of construction products , which includes life cycle assessment. What Is a Product Carbon Footprint (PCF)? The Product Carbon Footprint  is a sub-aspect  of the LCA – it measures only the greenhouse gas emissions  of a product, usually expressed in CO₂ equivalents (CO₂e) . It is particularly relevant for climate strategies , offsetting , and net-zero targets . Just like with life cycle assessments, standards should ideally be applied when calculating a PCF. The most commonly used standard is ISO 14067 . Which standard, norm, or method should be used depends on the product and the purpose of the study. It should definitely be clarified before  any calculations begin. What Do Life Cycle Assessment & CO₂ Footprint Have in Common? Both are based on the life cycle approach  (cradle-to-grave or cradle-to-gate) Both use standardized methods  (e.g., ISO 14040/44 for LCA, ISO 14067 for PCF) Both provide data-driven decision support  for sustainable product development, ecodesign, procurement, and communication Both are becoming increasingly relevant for regulation  – e.g., for CSRD , ESPR , Battery Regulation , EU Taxonomy , or the Critical Raw Materials Act LCA and PCF complement each other perfectly – they look at different perspectives but pursue the same goal: well-informed sustainability decisions. Those who master both methods lay the foundation for climate-friendly, future-proof products. In a state-of-the-art sustainability management system, they should be considered essential components. Need support with your first Life Cycle Assessment or Product Carbon Footprint? Book a session and let's explore together how we can support you.

What’s It About? The new EU regulation ESPR  (in force since July 2024) replaces the old Ecodesign Directive and extends its scope to almost all physical products  placed on the European market. The goal:  Products should become more durable , repairable , and resource-efficient .   What Does This Mean for Companies? Manufacturers and retailers will now have to meet detailed sustainability requirements  – for example, regarding energy efficiency, material choices, recyclability, or the CO₂ footprint. A Digital Product Passport (DPP)  will also become mandatory. For each product group, delegated acts  will define the specific criteria that must be met as performance  or information requirements . What’s Next? In April 2025 , the first Work Plan 2025–2030  was published. This defines which product groups will be prioritized in the coming years with new ecodesign requirements. These include: Steel / Iron Aluminium Textiles Furniture Mattresses Tires Energy-related products ICT products and other electronics ICT and energy-related products that were previously covered under the old Ecodesign Directive will now be included in the new Ecodesign for Sustainable Products Regulation .