For many businesses, sustainability reporting still feels like a heavy burden. The acronyms alone can be daunting, and so can the fear of drowning in red tape and the reams of paper being issued by regulators on this subject.

But the truth is, the soup is starting to clear.

Regulators and standard setters have heard the message: companies want sustainability reporting to be consistent, meaningful, and manageable, not just another compliance burden requiring significant increases in cost and resourcing. The latest updates show real momentum toward a more co-ordinated approach, with climate issues firmly at the centre, and a concerted effort to make the process practical.

Take the European Sustainability Reporting Standards (ESRS) which will apply in the EU, as determined by EFRAGs ongoing simplification work. They will still require a detailed double materiality lens, asking businesses to look at both financial risks and broader impacts on people and the environment. But regulators are responding to calls for pragmatism and are actively working to simplify the standards and phase in requirements more sensibly, while reducing the overwhelming number of data points.

Meanwhile, the International Sustainability Standards Board (ISSB) is offering a simpler, investor-focused global baseline that begins squarely with climate through its IFRS S1 & S2 standards. The UK is moving to adopt these standards through its planned UK Sustainability Reporting Standards (UK SRS), aiming for international consistency while allowing for local priorities and dynamics. The UK Government launched its consultation last week, focused on supporting companies to deliver credible and decision-useful sustainability-related information, with frequent mentions of flexibility, co-ordination with other frameworks and phased implementation. A clear attempt at introducing a sensible framework that works for business.

Looking outside of regulation, standard setters like the Global Reporting Initiative (GRI) are also working on greater interoperability with ESRS and ISSB, reducing duplication for companies that use multiple frameworks. Its recent announcement of new climate standards highlight a push for streamlined and actionable climate reporting.

And in the UK, the UK Government is helping to fill in another crucial piece of the puzzle and is laying out guidance for companies to develop and disclose credible climate transition plans. This is not just about ticking boxes, but about making sure plans are robust, transparent, and investor ready. The Government is consulting with wider stakeholders to ensure that appropriate consideration is given to the practicalities of implementing future requirements, recognising businesses need to be supported to play a role in the climate transition.

So, what does all this mean if you’re running a business?

First, sustainability reporting isn’t going away, even if one could come to this conclusion given the efforts to roll back legislation and the noises made in the media. It is however getting more coherent. More alignment means fewer duplicated questions, less risk of getting lost in the weeds, clearer expectations about what matters most and lower costs of compliance. The focus on materiality gives you permission, and encouragement, to prioritise what’s actually relevant to your business and sector, and to link this clearly to business performance.

Second, but perhaps the biggest takeaway, there is no avoiding climate. Even as frameworks simplify, none of them drop the requirement to disclose climate-related risks, transition plans, or emissions. Regulators demand it. Investors expect it. Customers and supply chains increasingly require it.

This can feel like pressure, but it also presents a real opportunity. Done well, sustainability reporting isn’t just compliance, it’s a potential competitive advantage. It helps you understand your risks and spot opportunities in the transition to a low-carbon economy. It shows your investors, customers, and employees that you’re credible and forward-looking. For companies looking to stay in global supply chains or maintain access to capital, being able to tell a clear, consistent sustainability story is essential.

For all these reasons, it is worth investing the time now, even if many of the requirements are being phased in. Building internal capacity, understanding which frameworks apply to you, and making use of the guidance that’s already out there can all help make sustainability reporting work for your business, not against it.

While the alphabet soup may not be completely gone, the recipe is getting clearer.