European Commission Adopts Revised Sustainability Reporting Standards (ESRS)

The European Commission adopted delegated acts on 3 July 2026 setting out revised European Sustainability Reporting Standards (ESRS) and a new voluntary sustainability reporting standard for smaller companies outside CSRD scope. The revised ESRS cut mandatory datapoints by more than 60% and total datapoints by more than 70%, an overhaul expected to reduce per-company reporting costs by over 30%, while the voluntary standard introduces a value-chain information cap to stop large companies passing excessive data demands down to smaller suppliers. The acts now face a two-month European Parliament and Council scrutiny period, extendable by a further two months, before entering into force.

• Cuts mandatory ESRS datapoints by more than 60% and total datapoints by more than 70%
• Expected to reduce sustainability reporting costs by over 30% per company
• Introduces a voluntary, proportionate reporting standard for smaller companies outside CSRD scope
• Adds a value-chain information cap limiting requests to smaller supply-chain partners
• Subject to a two-plus-two month Parliament/Council scrutiny period before entry into force