EU adopts revised ESRS — mandatory datapoints cut 61%
On 3 July 2026 the European Commission adopted the revised European Sustainability Reporting Standards and a companion voluntary standard. Here is what changed, when it applies, and what it means for UK companies reporting under — or supplying into — the EU regime.
Two Delegated Acts, one big simplification
The adoption completes the ESRS strand of the February 2025 Omnibus I package.
The European Commission adopted two Delegated Acts: one amending Delegated Regulation (EU) 2023/2772 with the revised ESRS (“ESRS 2026”), and one establishing a voluntary reporting standard — based on the VSME recommendation — for companies protected by the Omnibus value-chain cap. Per the delegated act’s explanatory memorandum, the revision cuts mandatory datapoints by 61%, total datapoints by over 70%, and is expected to reduce reporting costs by more than 30% per company.
When the revised ESRS applies
- 26 FEB 2025Omnibus I package launched
- 6 MAY 2026Draft delegated act + consultation
- 3 JUL 2026Revised ESRS + voluntary standard adopted
- Q4 2026Official Journal publication expected
- 1 JAN 2027Mandatory for CSRD-scope FYs (early use for FY2026 allowed)
CSRD-scope undertakings must apply the revised standards for financial years beginning on or after 1 January 2027 (reports due 2028); companies reporting on FY2026 may early-apply them instead of the 2023 ESRS. Third-country groups get their own standard — the ESRS-TC, whose draft went to public consultation on 23 July 2026 with Commission adoption expected in 2027.
What this means for UK companies
Three groups of UK companies are affected — in different ways.
UK groups in CSRD scope(via EU subsidiaries or listings) now face a substantially lighter EU reporting load, and the revised standards’ improved interoperability with IFRS S1/S2 narrows the gap to the ISSB-based UK SRS — making dual compliance more manageable. See CSRD vs UK SRS for scope and thresholds. UK suppliers to EU customers benefit from the value-chain cap: in-scope EU companies can only request the data covered by the new voluntary standard. Everyone elseshould read this as direction of travel — simplification and ISSB alignment — which is the same trajectory the UK’s own regime is on. Full framework detail in our ESRS guide and ESRS vs UK SRS comparison.
Revised ESRS — quick answers
When do the revised ESRS apply?
CSRD-scope companies must apply the revised ESRS for financial years beginning on or after 1 January 2027, with reports due in 2028.
Companies reporting for FY2026 (reports due 2027) may choose to early-apply the revised standards instead of the 2023 ESRS.
Both Delegated Acts are currently in the European Parliament and Council scrutiny period (two months, extendable by two more), with Official Journal publication expected in Q4 2026.
How big is the datapoint reduction?
Mandatory datapoints fall by 61% — from roughly 1,144 to around 500 — and the total number of datapoints (including formerly voluntary ones) falls by more than 70%.
The Commission expects this to cut reporting costs by over 30% per company.
The relief is greatest for companies with contained sustainability impacts; where a topic is material to you (for example climate under ESRS E1), the reporting depth remains substantial.
Does the revised ESRS change anything for UK companies?
Directly, only if you are in CSRD scope via EU operations — the revised ESRS is what your EU parent or subsidiary will report against from 2027.
Indirectly it matters to many more UK firms: EU customers in CSRD scope request value-chain data from UK suppliers, and the Omnibus value-chain cap limits those requests to the voluntary standard adopted alongside the revised ESRS.
It also narrows the gap between ESRS and the ISSB-based UK SRS, making dual compliance more manageable — see our ESRS vs UK SRS comparison.
What is the new voluntary reporting standard?
Alongside the revised ESRS, the Commission adopted a voluntary reporting standard based on the VSME recommendation of July 2025.
It covers the same topics as ESRS but in a form the Commission considers proportionate for undertakings with up to 1,000 employees, and it defines the ceiling of what in-scope EU companies can demand from value-chain partners protected by the cap — including UK suppliers.
What about non-EU parent groups?
Third-country groups reporting under Article 40a of the Accounting Directive will use a separate standard, the ESRS for Third-Country Groups (ESRS-TC, previously N-ESRS).
EFRAG approved the draft on 1 July 2026 and opened public consultation on 23 July 2026; the Commission expects to adopt it in 2027.