EU and UK rules still shifting: The EU's omnibus rollback has narrowed the scope of corporate sustainability reporting, but the standards themselves remain unfinished and last-minute changes to improve alignment with international frameworks could prove contentious.

SFDR reform sidelines private markets: Member states are divided on key aspects of the Commission's proposed SFDR overhaul, with engagement as an investment approach, grandfathering and category criteria all contested — and private markets concerns still largely unaddressed.

Time to engage is now: Some positive signals are emerging, including Sweden's push to adapt the framework for unlisted assets and calls to extend transition periods, but private markets participants need to act quickly to shape the final rules.

Links:

https://www.traverssmith.com/knowledge/knowledge-container/the-omnibus-reaches-its-destination-csrd-and-cs3d-20/

https://www.responsible-investor.com/eu-weighing-last-minute-move-to-adopt-issb-sustainability-standards/

https://www.traverssmith.com/knowledge/knowledge-container/ready-set-report-the-fca-fires-the-starting-gun-on-uk-sustainability-reporting/

https://www.traverssmith.com/knowledge/knowledge-container/travers-smiths-sustainability-insights-the-uks-cautious-roll-out/

https://www.traverssmith.com/knowledge/knowledge-container/travers-smiths-sustainability-insights-six-fixes-for-sfdr-20/

https://data.consilium.europa.eu/doc/document/WK-3931-2026-INIT/en/pdf

https://www.investeurope.eu/publications-policy/publications/2026/invest-europe-position-paper-on-sfdr-20/

https://doi.org/10.1093/jfr/fjac001