Revised ESRS and Voluntary Sustainability Reporting Standard Published

The final legal texts of the revised European Sustainability Reporting Standards (ESRS) and the new voluntary sustainability reporting standard have been published in the Official Journal of the European Union.

Commission Delegated Regulation (EU) 2026/1563 simplifies the ESRS used for mandatory sustainability reporting under the Corporate Sustainability Reporting Directive (CSRD). Commission Delegated Regulation (EU) 2026/1560 establishes a voluntary reporting standard for smaller companies and other undertakings protected by the value-chain cap.

The revised ESRS will enter into force on 10 November 2026 and apply to financial years beginning on or after 1 January 2027. The voluntary standard will apply to financial years beginning on or after 1 January 2027.

Key ESRS simplifications

The revised ESRS are intended to reduce reporting burdens while preserving information that is material for understanding a company’s sustainability impacts, risks and opportunities.

• Reducing the overall number of disclosure data points.
• Prioritising quantitative information over explanatory narrative text.
• Clarifying the distinction between mandatory and voluntary data points.
• Providing clearer instructions on applying the materiality principle.
• Improving coherence with other EU legislation.
• Supporting interoperability with global sustainability reporting standards.

Substances of concern and SVHCs

ESRS E2 Pollution covers emissions to air, water and soil, as well as substances of concern (SoC), including substances of very high concern (SVHC). The revised rules amend the transitional provisions for certain disclosures under ESRS E2-5.

Companies that manufacture substances, formulate substances or import substances on their own or in mixtures are required to disclose the total weight of substances of concern and, separately, the total weight of SVHCs that they procure as substances or in mixtures.

The revised ESRS provide transitional relief for selected disclosures. The timing depends on the company’s reporting status, size and role in the supply chain.

Transitional provisions for ESRS E2-5

Voluntary standard and value-chain cap

The voluntary sustainability reporting standard provides a proportionate reporting framework for companies that are outside the mandatory CSRD reporting scope. It is particularly relevant to smaller companies asked by customers, lenders or business partners to provide sustainability information.

It also establishes a value-chain cap. Companies subject to CSRD reporting cannot require smaller undertakings in their value chains to provide sustainability information beyond what is included in the voluntary standard.

What this means for companies

Companies preparing CSRD reporting should review their reporting processes, materiality assessments and data-collection systems against the revised ESRS. Particular attention should be given to the revised E2 Pollution disclosures and the applicable transitional relief for SoC and SVHC information.

Smaller companies may use the voluntary standard as a structured response to sustainability-information requests from customers and financial institutions. Companies within large value chains should also assess whether their supplier questionnaires are aligned with the new value-chain cap.

Source: Official Journal of the European Union, Commission Delegated Regulation (EU) 2026/1563 on the revised ESRS ; and Commission Delegated Regulation (EU) 2026/1560 on voluntary sustainability reporting standards .