ESG Reporting Standards: What Fund Managers Need to Know in 2026

The global ESG reporting landscape has undergone a dramatic transformation in 2026. With the International Sustainability Standards Board (ISSB) standards now adopted across more than forty jurisdictions, fund managers operating internationally face an unprecedented need for clarity and compliance.

For managers structuring funds through Mauritius, the convergence of ESG frameworks presents both challenges and opportunities. The Financial Services Commission (FSC) of Mauritius has proactively aligned its disclosure requirements with ISSB standards, making it one of the few jurisdictions in the Africa-Asia corridor to offer seamless ESG reporting integration.

The Shifting Compliance Landscape

The EU's Corporate Sustainability Reporting Directive (CSRD) and the SEC's climate disclosure rules have created a baseline that institutional allocators now expect from all fund vehicles — regardless of domicile. Fund managers who previously viewed ESG reporting as optional are finding that limited partners increasingly require auditable sustainability metrics as a precondition for capital commitments.

This shift is particularly pronounced in alternative investments. Private equity, real estate, and infrastructure funds are now expected to demonstrate not just financial returns but measurable impact across environmental, social, and governance dimensions.

Practical Steps for Fund Managers

First, managers should conduct a gap analysis of their current reporting against ISSB S1 and S2 standards. Understanding where existing data collection falls short is essential before committing to enhanced disclosures.

Second, the choice of fund administrator matters more than ever. Administrators with integrated ESG data capabilities can automate much of the reporting burden, reducing both cost and the risk of errors. At OM24 Global, we have invested in ESG-ready infrastructure that allows our clients to generate compliant reports without duplicating their operational workload.

Third, fund structuring itself can support ESG objectives. Segregated portfolio structures, for example, allow managers to ring-fence impact-focused strategies within a broader fund vehicle, providing investors with targeted ESG exposure alongside traditional allocations.

The Mauritius Advantage

Mauritius continues to strengthen its position as an ESG-aligned fund jurisdiction. The island's Green Finance Framework and its participation in the Network for Greening the Financial System (NGFS) signal a regulatory environment that encourages — rather than merely tolerates — sustainable finance. For fund managers seeking a jurisdiction that combines regulatory depth with ESG readiness, Mauritius offers a compelling proposition.

Looking Ahead

As reporting standards continue to converge, early adopters will benefit from stronger allocator relationships, smoother regulatory interactions, and a clearer narrative for investors. The cost of inaction — both in compliance risk and capital-raising disadvantage — is now too high to ignore.

Fund managers who embed ESG reporting into their operational DNA today will be best positioned to capture the growing pool of sustainability-conscious capital in the years ahead.