Client Alert: EU Finalizes Simplified ESRS on September 21, 2026

Your 2027 data is your 2028 Report.

The EU has finalized its simplified sustainability reporting standards. Commission Delegated Regulation (EU) 2026/1563 was published on September 21, replacing the existing ESRS annexes, and enters into force on November 10, 2026. The revised standards cut mandatory datapoints by over 60%.  

Who is affected 

EU Companies

EU companies and non-EU issuers with more than 1,000 employees on average and over 450 million in net turnover remain in CSRD scope. The first CSRD reports are expected in 2028 and should cover FY 2027.  

Non-EU companies

Non-EU companies exceeding 450 million(euros) net turnover generated in the EU and having at least one EU subsidiary or branch with over 200 million(euros) net turnover will report under ESRS-40a (currently in draft, anticipated to be published January 2027), with first reports due in 2029, expected to cover FY 2028.   

Why 2027 matters 

The revised ESRS applies to financial years beginning with January 1, 2027. The first report comes in 2028, but the data behind it starts on January 1. First-time reporters don’t need prior-year comparatives in year one, but FY 2027 data become the baseline. Emissions, workforce, and value chain data need consistent methods, boundaries, and controls from the start of the year.  

Relief for first-time reporters: 

• No comparative information is required in the first reporting year. 

• Biodiversity (E5) and the value chain workers, affected communities, and consumers standards (S2 to S4) can be omitted for the first two years. 

• Most anticipated financial effects are also phased in over two to four years. 

Value Chain Requests 

Starting in FY 2027, in-scope companies cannot require value chain partners with an average of 1,000 employees or fewer, including non-EU suppliers, to provide information beyond the short list of essential ESG data points in Annex II of the EU’s Voluntary Standard (Delegated Regulation (EU 2026/1560). Supplier data requests for 2027 should be designed around this limit. 

Companies already reporting (FY 2026) 

Companies already reporting under the existing ESRS may choose between: 

1. The existing ESRS 

2. The ESRS, supplemented by eight specific reliefs from the revised standards 

3. The Revised ESRS in full 

Companies must state in their sustainability statement which version they applied.  

How KERAMIDA is helping companies with CSRD readiness 

1. Confirming whether your organization is in scope under the new thresholds. 

2. Performing and refreshing Double Materiality Assessments against the revised standards. 

3. Collecting, managing, and mapping data against EFRAG’s revised list of data points with a Gap Assessment and Implementation Roadmap. 

4. Supporting companies in closing gaps in the Roadmap with additional sustainability services such as GHG Inventories, ESG training, etc.  

Client Alert: EU Seeks Feedback on Revised ESRS and Voluntary Sustainability Reporting Standards

The European Commission has opened a public feedback period on the draft final versions of the revised European Sustainability Reporting Standards (ESRS). The consultation marks another important step in the EU’s ongoing efforts to simplify and streamline sustainability reporting requirements under the Corporate Sustainability Reporting Directive (CSRD).

The revised ESRS standards are intended to reduce the administrative burden for EU companies subject to mandatory sustainability reporting while maintaining the quality and consistency of sustainability disclosures. According to the European Financial Reporting Advisory Group (EFRAG), the proposed revisions focus on improving usability, reducing the number of datapoints (including a reduction of more than 60% in mandatory datapoints and over 70% overall), simplifying double materiality assessments, and introducing new flexibilities for companies.

In parallel, the Commission is seeking stakeholder input on voluntary sustainability reporting standards intended for small and medium-sized enterprises (SMEs) and organizations outside the scope of mandatory CSRD reporting. The voluntary framework aims to support more proportionate ESG reporting while helping smaller companies respond to increasing sustainability information requests from their reporting business partners that are subject to mandatory sustainability reporting requirements.

Stakeholders are invited to submit feedback through the European Commission’s portal until June 3. Following the close of the consultation period, the Commission is expected to adopt the two delegated acts and subsequently submit them to the European Parliament and the Council for review under the standard no-objection procedure before the standards formally enter into force.

For more information, visit the European Commission announcement:
European Commission Feedback Process on Revised Sustainability Reporting Standards