News & Updates
169to1® ESG LAW & CIRCULARITY UPDATE 2025
13/11/2025
A concise guide to the latest EU sustainability developments
This update brings together the most important regulatory and framework changes affecting sustainability reporting, due diligence, circularity and business practice in 2025. It is designed to sit alongside the existing 169to1® ESG Law materials and gives organisations a clear understanding of what has changed, what remains stable and what they should prepare for next.
1. Corporate Sustainability Reporting Directive (CSRD): Current Status
The EU has announced a simplification package that will reshape how CSRD applies, particularly for smaller companies. The core structure of the directive remains in place, but several practical elements are being adjusted.
What has changed
Reporting thresholds are expected to rise, which means fewer small companies will fall directly within scope.
SMEs are not required to report immediately and may follow voluntary standards until at least 2028.
The European Commission is reducing and simplifying the number of mandatory disclosure points to make reporting more manageable.
The principles of double materiality, transparency and accountability remain unchanged.
What this means for organisations
Businesses should continue preparing for CSRD-aligned reporting, but they should check updated thresholds and timelines as Member States begin transposing the revised rules. Even when not in mandatory scope, many companies will still be required to align with CSRD standards through supply-chain expectations.
2. European Sustainability Reporting Standards (ESRS): Clarification
The ESRS now form the mandatory technical standards under CSRD. They define how companies assess impacts, risks and opportunities, how disclosures are structured and which data categories must be reported for governance, environmental and social performance.
Why this matters
CSRD is the law, but ESRS tell organisations what they must actually report. Any reference to CSRD should now be paired with clear acknowledgement of ESRS 1–12 to avoid misunderstanding and to maintain alignment with EU terminology.
3. Corporate Sustainability Due Diligence Directive (CSDDD)
CSDDD was formally adopted in 2024. Member States will incorporate it into national law between 2026 and 2028.
It establishes legal expectations for human rights and environmental due diligence across supply chains.
Impact on SMEs
Most SMEs will not be directly regulated under CSDDD, but they will be affected indirectly. Larger companies will extend due-diligence requirements down their supply chains, which will place expectations on smaller firms to demonstrate responsible sourcing, labour standards, and environmental safeguards.
4. EU Taxonomy: New Environmental Delegated Acts
The EU has expanded the Taxonomy with additional environmental criteria linked to circular economy, pollution prevention, biodiversity, and water management. These new criteria sit alongside the existing climate objectives and broaden the range of activities that can be classified as sustainable.
Practical relevance
The Taxonomy is increasingly used in sustainable finance, bank lending criteria and investment screening. Businesses should review whether the expanded technical screening rules now apply to their operations, particularly in manufacturing, infrastructure, waste, agriculture or resource-intensive sectors.
5. Global Circularity Protocol for Business (2025)
The World Business Council for Sustainable Development, working with the United Nations’ One Planet Network, has released a global circularity framework designed for businesses of all sizes.
It provides a consistent method to define, measure and report circular performance.
What the protocol enables
Identification of circularity hotspots in products and value chains.
Development of circular strategies, targets and KPIs.
Measurement of circularity using globally comparable indicators.
Clear communication of circular progress in line with international expectations.
Why it matters to your ESG materials
Although the protocol is voluntary, it aligns closely with ESRS E5 and emerging circular-economy indicators in the EU Taxonomy. It is expected to become a reference point for organisations wishing to show credible progress on resource efficiency, product lifecycle management and waste reduction.
6. What Organisations Should Do Next
To stay aligned with the evolving landscape, organisations should:
Review their current ESG reporting approach and check whether updates to CSRD thresholds or timelines affect their obligations.
Familiarise themselves with ESRS 1–12 to understand the level of data and disclosure expected.
Prepare for contractual due-diligence requirements from partners who fall within CSDDD scope.
Check whether their sector is included in the EU Taxonomy’s expanded environmental criteria.
Consider adopting the Global Circularity Protocol to strengthen circularity reporting and align with international benchmarks.
7. How This Update Fits Within the 169to1® System
This guide supports all users of the 169to1® ESG Law Cheat Sheets, Business Packs, NGO Packs and Compliance Appendix.
It ensures that every part of the ecosystem continues to reflect the latest developments in EU sustainability law and global circularity practice.
A fuller revision will be issued once the EU finalises the CSRD simplification package and Member States complete transposition. Until then, this update should be read as the current reference point for 2025.
169to1® ESG Update 2025: Student Edition
This guide explains the most important changes happening in sustainability and business rules in 2025. It is written so that young people can understand how companies are expected to act, report and take responsibility for people and the planet.
13/11/2025
1. What is CSRD and what is changing?
CSRD is a set of rules in the European Union that tells companies what they must report about the environment, social issues and how they run their business.
In 2025 the EU is making CSRD a bit simpler.
What is changing:
Smaller companies may not have to follow the rules straight away.
Some may not have to report at all until later.
The list of things companies must report will be shorter and easier to follow.
Companies still need to show how they affect people and the planet.
Why this matters:
It helps make sure businesses tell the truth about their impact and do not hide important information.
2. What are ESRS?
ESRS are the detailed instructions that explain how companies report under CSRD.
Think of CSRD as the rulebook, and ESRS as the step-by-step guide.
Why it matters:
ESRS tells companies what information they must collect, such as their carbon footprint, how they treat workers or how they use resources.
3. What is CSDDD?
CSDDD is a new EU law about responsible supply chains.
It supports human rights and environmental protection.
What companies must do:
Check their suppliers are not harming workers or the environment.
Fix problems when they find them.
Prove they acted responsibly.
Why this matters for young people:
It helps stop child labour, unsafe workplaces and environmental damage in countries where companies buy their products.
4. What is the EU Taxonomy?
The EU Taxonomy is a list of activities that are considered environmentally friendly.
In 2024 it was expanded to cover more areas like:
protecting nature and wildlife
reducing waste and pollution
using water responsibly
supporting the circular economy
Why it matters:
Banks and investors use the Taxonomy to decide which projects deserve green funding.
It helps money flow to cleaner and fairer industries.
5. What is the Global Circularity Protocol?
This is a new worldwide guide that helps companies measure how well they use resources.
It helps companies to:
see where they waste materials
design products that last longer
reuse or recycle more
set clear goals to reduce waste
compare their progress with other companies
Why it matters:
We cannot keep taking, using and throwing things away.
This protocol helps businesses move towards a circular economy where materials stay in use for much longer.
6. Why should companies care about all of this?
Because customers, workers, students and communities expect companies to act responsibly.
These rules and frameworks:
protect workers
reduce pollution
improve transparency
support fairer global supply chains
encourage better decisions about the environment
For young people, this means a healthier planet, safer workplaces, and more honest businesses in the future.
7. What you should take away from this
CSRD is being simplified but still important.
ESRS tells companies exactly what to report.
CSDDD makes supply chains safer and fairer.
EU Taxonomy guides green investment.
Global Circularity Protocol helps companies cut waste and reuse more.
These changes shape how companies behave today and how your future career might look tomorrow.