Commission Seeks Feedback on Revised Sustainability Reporting Standards

On May 6, 2026, the European Commission announced the opening of a public engagement period, lasting one month, inviting stakeholders to provide their input on draft final versions of the revised European Sustainability Reporting Standards (ESRS) and a new voluntary reporting standard specifically tailored for smaller enterprises.

The primary objective of these revised standards is to alleviate the administrative burden placed on businesses within the European Union while ensuring that the integrity and quality of sustainability disclosures are maintained. These revisions are part of the Commission’s broader strategy encapsulated in the Omnibus I simplification package, which aims to streamline reporting processes and ease compliance under the Corporate Sustainability Reporting Directive (CSRD).

The newly proposed draft standards reflect significant reductions in reporting requirements, cutting mandatory datapoints by over 60% and total datapoints by more than 70%. The ESRS will be more concise and straightforward, incorporating increased flexibility for companies and simplifying the materiality assessment necessary to determine required disclosures. Collectively, these changes are projected to reduce reporting expenses for individual companies by upwards of 30%.

The modifications to the ESRS are primarily based on the technical guidance provided by the European Financial Reporting Advisory Group (EFRAG), which serves as an independent advisory body dedicated to reporting standards. Stakeholder contributions were solicited during EFRAG’s processes in early 2025, followed by a comprehensive public consultation pertaining to EFRAG’s initial draft in the summer of 2025.

To further facilitate the reporting process, the Commission is proposing specific amendments to EFRAG’s recommendations, aiming to ease compliance without compromising the essential policy objectives of the CSRD.

The draft voluntary reporting standard is intended to support companies that are not required to adhere to CSRD mandates, particularly providing inclusive guidelines for sustainability reporting. A critical aspect of this draft is the introduction of a “value chain cap”; this means that enterprises under the CSRD requirement cannot demand information from their value chain partners that employ 1,000 individuals or fewer, beyond what is specified within the voluntary standard. This element is derived from EFRAG’s 2024 voluntary standard for small and medium-sized enterprises (VSME), which received Commission endorsement through a recommendation issued in 2025.

Next Steps

Stakeholders are encouraged to submit their feedback by June 3 through the designated public feedback portal. Following the closure of the consultation, the Commission plans to adopt the two delegated acts promptly, which will then be forward to the European Parliament and the Council for review under a no-objection process, which typically spans two months but can be extended by an additional two months at the request of either body, prior to their official enactment.

For further engagement, stakeholders can respond to the public feedback opportunities related to both the revised ESRS and the sustainability reporting standard intended for voluntary use via the provided links.