On September 21, 2026, the Official Journal of the European Union published a delegated regulation simplifying certain aspects of the European Sustainability Reporting Standards (ESRS). This regulation amends the existing sustainability reporting standards by reducing the number of datapoints; prioritizing quantitative datapoints over narrative text; further distinguishing between mandatory and voluntary datapoints; providing clear instructions on how to apply the materiality principle; improving consistency with other EU legislation; and taking account, to the greatest extent possible, of interoperability with global sustainability reporting standards. The new regulation also simplifies certain provisions of the original regulation that established the ESRS, as well as the structure and presentation of the reporting standards. The regulation will enter into force on November 10, 2026, and will apply to the financial years beginning on or after January 1, 2027.
