European Commission adopts revised ESRS and voluntary standard
Sustainability AlertOn 3 July 2026, the European Commission (EC) adopted the finalised version of the revised European Sustainability Reporting Standards (ESRS). There will now follow a two-month scrutiny period, which can be prolonged by an additional two months, where the delegated act will be passed to the European Parliament and the Council of the EU. The new regulation will enter force once this scrutiny period is over, and the reporting requirements will be mandatory for reporting periods beginning on or after 1 January 2027. At the same time, the EC has also adopted a new voluntary reporting standard for entities not captured by mandatory reporting requirements. This completes a long revision process which has involved technical advice and consultation with the European Financial Reporting Advisory Group (EFRAG) and stakeholders, which has aimed to simplify the requirements of ESRS reporting and reduce the burden on reporting entities.
