European Union publishes revised sustainability reporting standards

The European Commission has published finalized revised European Sustainability Reporting Standards (ESRS) in the Official Journal of the EU. This follows the Omnibus I initiative, which aimed to reduce the administrative and data-reporting burdens placed on businesses under the Corporate Sustainability Reporting Directive (CSRD).

The new regulations, including Commission Delegated Regulations (EU) 2026/1560 and (EU) 2026/1563, introduce a simplified reporting framework. A key component of the Omnibus package is a significant reduction in the scope of mandatory reporting; the number of companies required to comply has been reduced by approximately 90% by raising the threshold to companies with at least €450 million in revenue and 1,000 employees.

For smaller companies falling below the CSRD threshold, a new voluntary reporting standard has been established to limit the volume of sustainability-related information requests from larger corporations. The new regulations are set to enter into force on November 10, 2026, and will apply to financial years beginning on or after January 1, 2027.