CSRD and the agri-business sector: where to start

This change is not only regulatory, it means understanding what the CSRD (Corporate Sustainability Reporting Directive) really requires, how to put it into practice and how to turn it into a competitive advantage based on materiality, reliable data and traceability throughout the value chain.

The approval of Delegated Regulation (EU) 2026/1563 marks a profound change in how European companies must report their sustainability performance. The reform simplifies the European Sustainability Reporting Standards (ESRS/NEIS) and directs reporting towards what really matters: materiality, reliable data and verifiable evidence.

For the agribusiness sector, agriculture, agri-food, inputs, biocontrol, bioenergy and agricultural supply chains, this change is not only technical. It is strategic.

1. What ESRS/NEIS means now

ESRS/NEIS are the mandatory reporting standards under the CSRD. The 2026 reform turns them into a framework that is:

• Simpler: fewer mandatory indicators.
• More focused: everything must go through a double materiality assessment.
• More technical: more metrics, less narrative.
• More aligned with global standards (GRI - Global Reporting Initiative for impacts, IFRS/ISSB - International Sustainability Standards Board for financial risks).

In practical terms, companies will report only what is material, but with greater rigour and data quality.

2. Why this matters for the agribusiness sector

Agribusiness is one of the sectors most exposed to environmental, social and regulatory risks and impacts. Simplifying ESRS does not reduce the requirements, it raises the bar for quality and traceability.

a) Materiality becomes strategic

Companies will need to clearly demonstrate impacts on climate, soil, water and biodiversity, risks in agricultural supply chains, labour and social conditions in rural areas, and financial exposure to climate and regulatory events.

Materiality ceases to be a formal exercise and becomes a tool for risk management and competitiveness.

b) Greater demand for data at farm and supplier level

The market already requires Scope 3/FLAG emissions data, land-use and biodiversity indicators, water and soil metrics, evidence for sustainability claims and verifiable traceability.

The reform reinforces this trend, in other words, less narrative, more evidence.

c) Alignment with GRI and IFRS

This facilitates the work of companies with global operations and complex supply chains. Convergence makes it possible to integrate international sustainability programmes, report consistently to multinational clients, and improve comparability for investors and banks.

d) Less burden, but greater expectations

Although some small companies fall outside the mandatory scope, market pressure (retailers, certifications, financing) maintains the need for robust ESG data.

3. What companies in the sector should do

To adapt to the new ESRS/NEIS framework, agribusiness companies should:

• Strengthen sector-specific materiality with technical evidence.
• Invest in data systems and digital traceability.
• Integrate ESG into risk management and strategy.
• Prepare audited and verifiable information.
• Align reporting with GRI and IFRS to facilitate comparability.

Leadership will come from those who turn sustainability into operational excellence and market differentiation.

4. Conclusion

The ESRS/NEIS reform does not reduce the importance of sustainability in agribusiness. It transforms it into a more strategic, more technical and data-oriented exercise.

Companies that strengthen their materiality, traceability and information quality now will be better positioned to comply with regulation, access demanding markets and build trust throughout the value chain.