EU publishes simplified sustainability reporting standards (ESRS) in the Official Journal
The revised ESRS enter into force on 10 November 2026 and become mandatory from financial year 2027, with a cap on data requests to smaller suppliers.
According to a Linklaters note dated 21 September 2026, two European Commission delegated regulations were published in the EU Official Journal that day. Regulation (EU) 2026/1563 replaces the current ESRS with a simplified set, and Regulation (EU) 2026/1560 sets up a voluntary reporting standard for companies outside the scope of the CSRD.
According to a note from law firm Linklaters dated 21 September 2026, two Commission delegated regulations completing the EU's Omnibus I simplification package were published in the EU Official Journal that day. Regulation (EU) 2026/1563 replaces the European Sustainability Reporting Standards (ESRS) with a simpler set. Regulation (EU) 2026/1560 creates a voluntary reporting standard for companies that are not covered by the Corporate Sustainability Reporting Directive (CSRD).
- The revised ESRS enter into force on 10 November 2026 and are mandatory for financial years starting on or after 1 January 2027, with first reports due in 2028.
- For financial year 2026, companies can choose one of three options: the existing ESRS, the existing ESRS plus certain reliefs from the new regulation, or the revised ESRS in full. The report must state clearly which version was used.
- The voluntary standard entered into force on 24 September 2026 and can be used by any company that is not subject to mandatory reporting.
- According to XBRL International's post of 27 September, the revised standards cut mandatory disclosures by more than 60 percent; EFRAG's draft XBRL taxonomy is open for comment until 11 November.
Why it matters
Linklaters explains that, for financial years starting on or after 1 January 2027, companies with mandatory reporting duties cannot ask value chain companies that averaged 1,000 or fewer employees in the previous financial year for anything beyond the brief set of core ESG data points listed in Annex II of the voluntary standard. The limit applies only to data requested for the requester's own CSRD report; requests based on other EU or national law fall outside it. For mid-sized Turkish suppliers to EU customers, this rule could outline what future sustainability questionnaires may ask. Companies that keep energy, emissions and workforce data in order may be able to answer these requests faster.
For an example of collecting emissions data at site level, see our carbon footprint project.
Sources
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