Simplified European standards of the ESRS
Delegated Regulation (EU) 2026/1563 has been published, amending the European Sustainability Reporting Standards (ESRS). The revised standards reduce data requirements, eliminate duplication and allow companies to report on sustainability in a more proportionate way, while preserving key information for investors and other stakeholders.
The application of the revised standards will be mandatory for the financial year 2027, which companies will report on in 2028. Companies that are obliged to report in accordance with the Companies Act (ZGD-1) may decide to prepare a sustainability report in accordance with the revised European Sustainability Reporting Standards (ESRS) as early as the financial year 2026.
A new voluntary standard for businesses
Delegated Regulation (EU) 2026/1560 has also been published, which introduces a voluntary sustainability reporting standard for companies that are not obliged to report under ZGD-1. The standard sets out the set of information that companies can voluntarily disclose, while at the same time limiting and determining the maximum amount of data that larger business partners in the value chain can request from them (value chain cap).
The disclosure restriction will apply from FY2027 to reporting in 2028 and the voluntary standard for the preparation of sustainability reporting will be able to apply from its entry into force, i.e. from 24 September 2026.
Purpose of adopting delegated acts
Both delegated acts contribute to a simpler and more proportionate sustainability reporting framework in the European Union. The amendments aim to reduce reporting costs, increase legal predictability and ensure that companies report primarily information that is relevant to understanding their sustainability impacts, risks and opportunities.