ESRS — European Sustainability Reporting Standards explained
The ESRS are the standards behind EU CSRD reporting: ESRS 1 and ESRS 2 set the framework, ten topical standards carry the disclosures — and the revised set adopted on 3 July 2026 cut mandatory datapoints by 61%. This guide covers the system from a UK company’s perspective.
What the European Sustainability Reporting Standards are
The mandatory disclosure standards for CSRD-scope companies, developed by EFRAG and adopted by the European Commission as delegated regulation.
Companies in scope of the EU’s Corporate Sustainability Reporting Directive (CSRD) must prepare their sustainability statement under the ESRS, developed by EFRAG and adopted by the European Commission as Delegated Regulation (EU) 2023/2772 — now amended by the revised standards adopted on 3 July 2026. Unlike the ISSB-based UK SRS, the ESRS use double materiality: companies report what affects their enterprise value and their impacts on people and the environment.
ESRS 1 and ESRS 2 — the framework pair
Two standards apply to every in-scope company regardless of sector or materiality outcomes.
ESRS 1 — General Requirements sets the rules: double materiality, the value-chain boundary, statement structure and the phase-in reliefs. It prescribes no datapoints itself. ESRS 2 — General Disclosurescarries the disclosures every reporter must make: governance, strategy, impact/risk/opportunity management, and metrics & targets — the same four-pillar architecture that TCFD established and UK SRS S2 uses. The ten topical standards (E1–E5 environment, S1–S4 social, G1 governance) apply only where material — and after the 2026 revision, several anticipated-financial-effects requirements moved from the topical standards into ESRS 2.
- ESRS 1General Requirements
- The cross-cutting rulebook: double materiality, value-chain boundary, statement structure, phase-ins. No datapoints of its own.
- ESRS 2General Disclosures
- Mandatory disclosures for all reporters across governance, strategy, IRO management and metrics & targets — materiality-independent.
- Topical standardsE1–E5 · S1–S4 · G1
- Climate, pollution, water, biodiversity, circular economy; own workforce, value-chain workers, communities, consumers; business conduct. Apply where material.
- ESRS-TCThird-country groups
- The separate standard for non-EU parent groups reporting under Article 40a — draft in consultation from 23 July 2026, Commission adoption expected 2027.
The July 2026 revision — what changed
The Omnibus I package required a simplified ESRS; the Commission delivered it on 3 July 2026.
- 26 FEB 2025Omnibus I launched
- 18 MAR 2026Omnibus I Directive in force — CSRD scope raised
- 3 JUL 2026Revised ESRS + voluntary standard adopted
- Q4 2026OJ publication expected (scrutiny period)
- 1 JAN 2027Revised ESRS mandatory (FY2026 early use allowed)
The revised standards cut mandatory datapoints by 61% and total datapoints by over 70%, simplify the materiality assessment, add reliefs and phase-ins, and deepen interoperability with IFRS S1/S2 — the baseline UK SRS shares. The Commission expects reporting costs to fall by more than 30% per company. Full analysis, application dates and UK impact in our news piece: EU adopts revised ESRS — mandatory datapoints cut 61%.
ESRS for UK companies — who actually needs to care
Three routes into ESRS exposure for a UK business.
Direct scope: UK groups with large EU subsidiaries or EU listings report under CSRD/ESRS — post-Omnibus, that means exceeding 1,000 employees and €450m net turnover. Third-country route: non-EU parents above the EU turnover threshold will use the ESRS-TC from 2027-28. Value chain: far more UK companies feel ESRS indirectly — as suppliers receiving data requests from in-scope EU customers, capped at the voluntary standard. For the side-by-side regime detail, see ESRS vs UK SRS and UK SRS vs ESRS; for scope and thresholds, CSRD vs UK SRS.
ESRS — frequently asked questions
What are the European Sustainability Reporting Standards (ESRS)?
The ESRS are the mandatory reporting standards that companies in scope of the EU Corporate Sustainability Reporting Directive (CSRD) must use for their sustainability statements.
Developed by EFRAG and adopted by the European Commission as delegated regulation, they cover environmental, social and governance topics under a double materiality approach.
A revised, simplified set — adopted 3 July 2026 — applies for financial years beginning on or after 1 January 2027.
What is ESRS 1?
ESRS 1 (General Requirements) is the cross-cutting standard that sets the rules of the game: double materiality, the value-chain boundary, how to structure the sustainability statement, and the phase-in reliefs.
It prescribes no datapoints itself — it governs how the topical standards are applied.
It is the EU counterpart to the role IFRS S1 / UK SRS S1 play in the ISSB-based system, though the materiality basis differs.
What is ESRS 2?
ESRS 2 (General Disclosures) contains the disclosures every in-scope company must make regardless of materiality: governance, strategy, impact/risk/opportunity management and metrics & targets — the same four-pillar architecture that TCFD established and that UK SRS S2 uses.
Under the revised ESRS, several anticipated-financial-effects requirements from the topical standards were consolidated under ESRS 2.
What changed in the revised ESRS adopted in July 2026?
The revision — the ESRS strand of the Omnibus I simplification — cut mandatory datapoints by 61% (roughly 1,144 to about 500), eliminated voluntary datapoints for a total reduction of over 70%, simplified the materiality assessment, added reliefs and phase-ins, and improved interoperability with IFRS S1/S2.
The Commission expects reporting costs to fall by more than 30% per company.
It applies from financial years beginning 1 January 2027, with early application allowed for FY2026.
Do UK companies have to report under ESRS?
Only if they are in CSRD scope — typically via a large EU subsidiary, an EU listing, or (from FY2028 reporting) as a third-country group meeting the EU turnover threshold, which will use the separate ESRS-TC standard expected in 2027.
Post-Omnibus, CSRD scope requires more than 1,000 employees and €450m+ net turnover.
Most UK companies instead face UK SRS, SECR and ESOS — but UK suppliers to in-scope EU customers will receive value-chain data requests capped at the voluntary standard.
How do ESRS differ from UK SRS?
Two core differences: materiality and breadth.
ESRS use double materiality (impact on people/environment plus financial), while UK SRS — based on the ISSB baseline — uses single financial materiality.
ESRS span 12 topical standards; UK SRS currently comprises S1 (general) and S2 (climate).
The revised ESRS narrowed the practical gap by cutting datapoints and improving ISSB interoperability.
See our full ESRS vs UK SRS comparison.
Related guides & references
News: EU adopts revised ESRS
The 3 July 2026 adoption — datapoint cuts, dates and UK impact
ESRS vs UK SRS
Side-by-side: materiality, datapoints, assurance, timelines
CSRD vs UK SRS
Scope, thresholds and dual-compliance planning
Double materiality
The EU materiality concept and how it differs from ISSB/UK SRS
UK SRS S1 & S2
The UK standards ESRS is most often compared against