3 July 2026 – Cleerit

The EU has just reshaped sustainability reporting.

Today, on 3 July 2026, the European Commission adopted the revised ESRS — the biggest update since CSRD came into force. The new Delegated Act cuts mandatory datapoints by 61%, strengthens interoperability with ISSB and the EU Taxonomy, and clarifies how materiality should be applied in practice.

For companies preparing their next sustainability report, this is a turning point:

Optional early adoption in 2026
Mandatory application from 2027
New reliefs, clearer rules, and lower reporting burden
Stronger focus on standardized, decision‑useful, material information

Below we have summarized the key changes — and what they mean for your reporting processes.

You can download the revised ESRS here: https://ec.europa.eu/finance/docs/level-2-measures/csrd-delegated-act-2026-5010-annex_en.pdf

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The 2026 CSRD Delegated Act: What You Need to Know for Your Next Sustainability Report

On 3 July 2026, the European Commission adopted a major update to the European Sustainability Reporting Standards (ESRS). This Delegated Act simplifies the reporting framework, reduces mandatory datapoints, and clarifies how companies should apply materiality. It is the most significant revision since ESRS was first introduced in 2023—and it directly affects how companies will report from financial year 2027, with optional early adoption in 2026.

Why the ESRS were revised

The revision is part of the Omnibus I simplification package, which aims to reduce administrative burden while preserving the core objectives of the CSRD. The Commission explains that the update was needed to:

“remove datapoints deemed least important… prioritise quantitative datapoints… further distinguish between mandatory and voluntary datapoints… and provide clear instructions on how to apply the materiality principle.”

The goal is to make sustainability reporting simpler, clearer, and more proportionate, especially for companies with complex value chains.

When the new standards apply

The Delegated Act states:

“Undertakings must use the revised ESRS from financial year 2027. They may choose to use the revised ESRS also for financial year 2026.”

Timeline

2026: Optional early adoption
2027: Mandatory application for all companies in scope
Entry into force: Four months + one week after adoption at the latest (≈ November 2026)

Companies reporting for FY2026 must explicitly state which version of ESRS they apply.

Key simplifications companies will notice

3.1 Fewer mandatory datapoints (‑61%)

EFRAG’s technical advice led to a dramatic reduction in mandatory disclosures:

“Reducing the mandatory datapoints by 61% while retaining the core objectives of the European Green Deal.”

This means shorter reports, fewer tables, and more focus on what is truly material.

3.2 Clearer and more practical materiality rules

Materiality is the central mechanism for determining what to report.

The Commission clarifies that companies:

“shall not report information that is not material, except in certain clearly defined circumstances.”

New guidance includes:

A top‑down approach allows the undertaking to avoid unnecessary work and in general to avoid assessing the materiality of each individual impact, risk or opportunity.
Explicit permission to omit information that is commercially sensitive.
More flexibility regarding the need to consider specific geographical contexts when carrying out the materiality assessment – also clarifies that the level of disaggregation for materiality assessment does not imply that information must be reported at that same level of disaggregation.
The text states that reporting anticipated financial effects is likely to involve estimates and that these can be updated in the future in light of new information without this constituting a reporting “error” – and an additional year of phasing-in is introduced for both qualitative and quantitative information.
Reliefs for undue cost or effort and value chain limitations

3.3 More interoperability with global standards

The revised ESRS improves alignment with:

ISSB standards
EU Taxonomy
CSDDD (Corporate Sustainability Due Diligence Directive)

For example, companies may now use either financial control or operational control when defining GHG reporting boundaries—matching global practice.

3.4 New reliefs and phase‑ins

Companies get additional flexibility, including:

Extra year of phase‑in for anticipated financial effects
One‑year phase‑in for substances of very high concern
Reliefs for new acquisitions, joint operations, and non‑significant activities

These changes reduce the risk of non‑compliance and lower implementation costs.

What remains mandatory

Despite simplification, several core areas remain essential:

Double materiality and reporting on IROs, policies, actions, targets and metrics
Climate transition plans (with transparency if not aligned with 1.5°C)
Primary microplastics disclosures
Pollutant emissions (based on managerial assessment)
Human rights incidents (only “substantiated verified” cases)

The Commission emphasizes that simplification must not undermine the European Green Deal.

Expected cost savings

EFRAG’s cost‑benefit analysis shows substantial reductions:

“Reporting cost savings correspond on average to 34% of baseline costs… cumulative savings raise to around EUR 4.7 billion over 2027–2031.”

This is one of the strongest signals that ESRS aim to become more manageable for companies.

What to do now

Step 1 — Decide whether to adopt early (FY2026)

Early adoption may simplify your 2026 report, but requires clear disclosure of the chosen ESRS version.

Step 2 — Update internal reporting systems

The revised ESRS structure is simpler, but companies must ensure:

updated templates
updated data models
updated governance and controls
alignment with CSDDD and EU Taxonomy

During summer we will update Cleerit with the final texts. We will then contact you to plan the implementation in your application.

Final takeaway

The 2026 Delegated Act marks a turning point and the end of a long period of uncertainty. ESRS becomes more proportionate, more aligned with global standards, and significantly easier to understand and implement. Companies that embrace the materiality‑driven standardized reporting approach will produce shorter, clearer, and more decision‑useful sustainability reports—with lower cost and less administrative burden.

A well‑structured, machine‑readable sustainability statement also strengthens governance, accelerates internal learning, reveals strategic blind spots, and positions your organization for the EU’s dual green and digital transition.

If your first ESRS report is due in FY2027, remember: early reporters will already be on their fourth cycle. Building processes, collecting data, and aligning teams takes time. Waiting until 2027 means falling years behind. Now is the time to start.