How do brands report leather under CSRD?

Leather typically falls under European Sustainability Reporting Standards (ESRS) E1 (climate, where Scope 3 purchased-goods and land-use-change emissions dominate), E4 (biodiversity and deforestation linked to cattle ranching), E3 (water, given tanning’s intensity), and E5 (resource use and circularity). Social and Governance topics, ESRS S1 (Own Workforce), S2 (Workers in the Value Chain), S3 (Affected Communities), S4 (Consumers and End-Users), and G1 (Governance), can also apply. The double-materiality assessment is what determines which of these topics pull into a brand’s mandatory disclosures.

CSRD’s scope and timing changed materially in 2025 and 2026. The “Stop-the-Clock” Directive (2025) postponed reporting waves, and the Omnibus directive, adopted in February 2026, raised the threshold so CSRD now applies to companies with more than 1,000 employees and net annual turnover above €450 million, with the second wave’s first reports moved to financial year 2027, reported in 2028. The higher thresholds leave roughly four out of five previously in-scope companies outside CSRD altogether. The European Commission officially adopted the Revised ESRS on July 3, 2026.

While the scope has narrowed, the demand for the data has not. The requests keep coming down the supply chain, regardless of where the compliance line is located. Although ISA Next-Gen Materials is out of scope for CSRD, we align with the regulation to support our customers.

ISA Next-Gen Materials helps brands meet these disclosures with primary data, not data sets. The vast majority of the wet blue hides we purchase can be traced back to the slaughterhouse and date of slaughter, with identification extending to the pallet level. These are conditions of supply, and the records are independently verified. The LITE (Low Impact to the Environment) Index reports per-article water and energy against the Leather Working Group (LWG) Bronze benchmark.

Our Greener Pastures™ traceability program delivers a documented chain of custody by lot back to the birth farm, and it supports ESRS E4 and Scope 3 land-use-change reporting. Greener Pastures™ also carries the animal welfare requirements that sit outside ESRS but inside most brand codes: every hide a non-determining animal by-product of the meat industry, Beef Quality Assurance (BQA) or Meat Institute (formerly NAMI) certification at the abattoir, Beef Quality Assurance Transportation (BQAT) in transit, United States Department of Agriculture (USDA) Humane Handling verified by third party auditors, and a 100 percent vegetarian diet.

Our commitments are our own. They do not depend on any single regulation remaining in force; the pace is set by what our customers require, and brand and retailer sourcing policies make traceability, country of origin and animal welfare contractual terms that do not change when a delegated act does.