REVISED ESRS AND VOLUNTARY SUSTAINABILITY REPORTING STANDARD ADOPTED
The revised European Sustainability Reporting Standards (ESRS) and a new voluntary sustainability reporting standard for companies outside the scope of the Corporate Sustainability Reporting Directive (CSRD) have been adopted. Following the Commission’s initial adoption of the two delegated acts on 3 July 2026, neither the European Parliament nor the Council raised objections during the two-month scrutiny period.
The new standards form part of the broader simplification of EU sustainability reporting initiated through the Omnibus I package. As the March 2026 revision of the CSRD substantially narrowed the number of companies subject to mandatory sustainability reporting, the revision of the ESRS addresses the reporting requirements applying to companies that remain within the scope of the Directive.
Under the revised ESRS, the number of mandatory datapoints has been reduced by more than 60%, while the total number of datapoints has been cut by more than 70%. The Commission estimates that the changes will reduce reporting costs by more than 30% per company. The revised standards are also intended to provide greater flexibility and simplify reporting processes, while retaining double materiality as a fundamental principle of sustainability reporting. Companies must therefore assess both their impacts on people, and the environment and the financial effect of sustainability matters on their business.
The revised ESRS will apply to financial years beginning on or after 01 January 2027, meaning that the first reports under the new requirements will be prepared in 2028. EFRAG has already published a draft updated list of ESRS datapoints to assist companies in preparing for the revised requirements. The list is currently undergoing a fatal-flaw review, with the final version expected by the end of 2026.