On July 3, 2026, the European Commission adopted the Delegated Act on the revised European Sustainability Reporting Standards (ESRS). The revised ESRS preserve the key pillars of sustainability reporting—including reporting on material impacts, risks and opportunities, and related actions, policies, metrics and targets across environmental, social and governance topics. At the same time, they introduce a more proportionate and flexible framework with significantly fewer mandatory datapoints, new reliefs, exemptions, and transitional provisions, and a stronger focus on information materiality and fair presentation.
The Delegated Act is now undergoing scrutiny by the European Parliament and Council of the EU. If no objection is raised, it is expected to come into force in November 2026 and apply mandatorily from fiscal year 2027.
A report by EY sheds light on the main changes introduced by the revised ESRS and their practical implications for businesses. Visit the INC members area to access the full report (login required).