The Revised (Simplified) ESRS: What Delegated Regulation (EU) 2026/1563 Changes, from FY 2027 and Optionally FY 2026

The duty to publish a sustainability statement comes from the Corporate Sustainability Reporting Directive, Directive (EU) 2022/2464, as amended by Directive (EU) 2026/470 (Omnibus I). That directive binds the Member States, and companies are bound by the national law that transposes it. The ESRS say what the statement discloses, while the scope rules of the directive decide who reports under the Corporate Sustainability Reporting Directive (CSRD).

The sections below cover the act, its adoption, the application dates, the datapoints, materiality, the general changes, each of the 12 standards, the Commission's changes to EFRAG's advice and the steps to switch. As of 29 October 2026 the act is published but not yet in force.

The table summarises the act as of 29 October 2026.

What Delegated Regulation (EU) 2026/1563 Is

Delegated Regulation (EU) 2026/1563 is the Commission act, adopted on 3 July 2026 under document number C(2026) 5010 and published in OJ L, 2026/1563 on 21 September 2026, that contains the revised set of 12 standards. The text is available on EUR-Lex as Delegated Regulation (EU) 2026/1563.

Annex I holds the standards: ESRS 1 and ESRS 2 as cross-cutting standards, E1 to E5 on the environment, S1 to S4 on social matters and G1 on business conduct. Annex II holds the acronyms and the glossary. The defined terms now speak of a "sustainability topic" where the 2023 set used "sustainability matter", while Article 2(17) of Directive 2013/34/EU keeps the term "sustainability matters".

Annexes Replaced, Nothing Repealed: The Link to the 2023 Set

Article 1 of Delegated Regulation (EU) 2026/1563 replaces Annex I and Annex II of Delegated Regulation (EU) 2023/2772, so the 2023 act stays in force with new annexes and is not repealed. Delegated Regulation (EU) 2023/2772 of 31 July 2023, published in the Official Journal on 22 December 2023 and in force since 25 December 2023, has applied to financial years beginning on or after 1 January 2024. Its Annex I sets out the 12 European Sustainability Reporting Standards (ESRS).

The quick fix, Delegated Regulation (EU) 2025/1416 of 11 July 2025, in force since 13 November 2025, is a different act. It replaced ESRS 1 Appendix C and the opening of ESRS 2 paragraph 17, changed the phase-ins from financial year 2025, and is not the revised set. Three acts therefore shape one regulation: 2023/2772 created it, 2025/1416 amended its phase-ins, and 2026/1563 replaces its annexes.

Legal Basis and Direct Application

The act rests on Article 29b(1), first subparagraph, of Directive 2013/34/EU and, as a regulation, is binding in its entirety and directly applicable in all Member States without national transposition. The CSRD works differently: Directive (EU) 2022/2464 and Directive (EU) 2026/470 reach companies through national law, and Directive (EU) 2026/470 must be transposed by 19 March 2027.

From the Omnibus Mandate to the Official Journal

The revision followed a mandate in Directive (EU) 2026/470: recital 18 records that the Commission would adopt a delegated act revising the first set of ESRS within six months of that Directive's entry into force on 18 March 2026. The recital names the aims: removing the least important datapoints, prioritising quantitative datapoints and distinguishing mandatory from voluntary ones. Article 29b(2), first subparagraph, of Directive 2013/34/EU as replaced by Directive (EU) 2026/470 now says that the standards "shall, to the extent possible, prioritise the disclosure of quantitative information" and avoid a disproportionate administrative or financial burden.

EFRAG published exposure drafts in July 2025, followed by 60 days of public consultation, and had been asked to deliver its technical advice by November 2025. EFRAG submitted its technical advice with a cover letter of 2 December 2025 and published it on 3 December 2025. The Commission adopted the act on 3 July 2026, and the Commission news of that day states: "The measures will apply once the scrutiny period of 2 months, which can be prolonged by a further 2 months, is over." The table lists each step that answered the Omnibus mandate in Directive (EU) 2026/470.

When the Revised Standards Apply

The revised standards apply by financial year, not by reporting date: mandatory for financial years beginning on or after 1 January 2027, optional for financial years beginning between 1 January and 31 December 2026. Financial year 2024 statements follow the 2023 set, and financial year 2025 statements follow the 2023 set with the phase-ins of Delegated Regulation (EU) 2025/1416.

Entry into Force on 10 November 2026, Mandatory from Financial Year 2027

Under Article 3, the act enters into force on 10 November 2026 and applies to financial years beginning on or after 1 January 2027, so the first statements prepared under it as an obligation cover financial year 2027. As of 29 October 2026 the act is published in the Official Journal but not yet in force.

Which companies report for financial year 2027 is a scope question, not a question of the standards. From financial years beginning on or after 1 January 2027, Articles 19a(1) and 29a(1) of Directive 2013/34/EU as replaced by Directive (EU) 2026/470 cover undertakings and groups with more than 1,000 employees on average and a net turnover above EUR 450 million. Wave 1, the large public-interest entities with more than 500 employees, reports for financial years 2024 to 2026 only. The first year for each group of companies is set out in the CSRD timeline by financial year.

The Choice for Financial Year 2026: Three Routes and Eight Reliefs

For a financial year beginning between 1 January and 31 December 2026, Article 2 of Delegated Regulation (EU) 2026/1563 lets an undertaking report under the 2023 set as last amended by Delegated Regulation (EU) 2025/1416, under the revised set, or under the 2023 set combined with eight reliefs taken from the revised ESRS 1. Article 2(1)(a) contains the first two routes. Article 2(1)(b) contains the third and lists the eight reliefs, each tied to a paragraph of the revised ESRS 1. The table lists them in the order of the Article.

Article 2(2) adds one condition to every route: the undertaking shall clearly state in the sustainability statement which version it applies for that financial year. The statement therefore names either the 2023 set as last amended by Delegated Regulation (EU) 2025/1416, the revised set, or the 2023 set with the reliefs of Article 2(1)(b).

How Far the Datapoints Were Cut

The revised set has 292 "shall" datapoints against 783 in the 2023 set (195 net of conditional datapoints), according to EFRAG's draft list of datapoints, which is non-authoritative and must not be used as a checklist. The counts come from the Statistics sheet of the EFRAG draft list and exclude the datapoints of the general disclosure requirements. Its Disclaimer sheet calls the file "non-authoritative supporting material issued by the EFRAG Secretariat" that "does not constitute Implementation Guidance".

The reduction percentages have different authors. EFRAG's technical advice reported 61 % fewer "shall" datapoints and 71 % fewer when voluntary datapoints are included, compared with its implementation guidance IG 3; the Commission's explanatory memorandum to C(2026) 5010 repeats the 61 %, which belongs to the advice, not to the final act. According to the Commission (3 July 2026), the revised ESRS reduce mandatory datapoints by over 60 % and total datapoints by over 70 %, and are expected to cut reporting costs by more than 30 % per company. Counts for each standard are on the page about the datapoint list behind the revised standards.

Materiality in the Revised Set: Top-Down Conclusions and No Immaterial Information

The revised ESRS 1 keeps double materiality but changes how it is applied: an undertaking may conclude on a whole topic from its strategy, business model and value chain (paragraph 27), and it shall not disclose ESRS information that is not material (paragraph 24). Paragraph 23 of the revised ESRS 1 defines information as material when omitting, misstating or obscuring it could reasonably be expected to influence decisions of primary users of general-purpose financial reports, or decisions of other users regarding the undertaking's material impacts, risks and opportunities. Paragraph 24 then bans the disclosure of information prescribed by a disclosure requirement or datapoint if that information is not material, except supplementary information under section 8.2. The ban is new in the 2026 set.

Paragraphs 27 to 32 and their application requirements change how the assessment is run. Under paragraph 27, the undertaking may derive a conclusion on a topic or sub-topic from its strategy, business model, sectors, geographies and value chain without further assessment; paragraph 28 allows a bottom-up assessment at the level of impacts, risks and opportunities, and AR 10 allows top-down for some topics and bottom-up for others. Paragraph 32 bases the assessment on reasonable and supportable information available without undue cost or effort and does not require every possible impact, risk or opportunity to be assessed. AR 13 adds that quantitative scoring is not necessarily required and a qualitative analysis may be sufficient. AR 15 removes the need to analyse each severity characteristic, or every time horizon, where the result is evident.

Recital 18 of Directive (EU) 2026/470 set this aim: clear instructions on how to apply the materiality principle so that only material information is required, and a lower risk that assurance providers encourage the reporting of unnecessary information or excessive resources for the assessment. The method in full, with the steps of both versions, is explained in the double materiality assessment under both sets.

Other General Changes in the Revised Set

Beyond materiality, the revised ESRS 1 and ESRS 2 change the general rules that every topical standard relies on. The six changes are listed below.

• ESRS 1 rewritten. The revised ESRS 1 is rewritten, covering fair presentation, information materiality, the top-down approach, new reliefs and a new phase-in regime; see general requirements of the revised ESRS 1.
• GDR instead of MDR. The minimum disclosure requirements of the 2023 set (ESRS 2 paragraphs 60 to 81) become general disclosure requirements (GDR) in the 2026 set: GDR-P, GDR-A, GDR-M and GDR-T in ESRS 2 paragraphs 38 to 52.
• Governance renumbered. ESRS 2 in the 2026 set has GOV-1 to GOV-4: the 2023 GOV-2 is deleted, and the 2023 GOV-3, GOV-4 and GOV-5 become GOV-2, GOV-3 and GOV-4; see ESRS 2 general disclosures in the revised set.
• Metric reliefs. Revised ESRS 1 paragraphs 90 to 92 let an undertaking applying the 2026 set exclude non-significant activities, report on a partial value-chain scope (not for gross scope 1, 2 and 3 emissions in E1-8) and exclude joint operations without operational control from E2 to E5 metrics.
• Value-chain requests. Paragraph 66 of the revised ESRS 1 limits what may be required from value-chain undertakings with up to 1,000 employees, also outside the EU, to the datapoints in Annex II to Delegated Regulation (EU) 2026/1560; see the value-chain cap for undertakings up to 1,000 employees.
• New phase-ins. Paragraphs 121 to 127 set the transitional regime: paragraph 125 covers wave-one undertakings with a net turnover above EUR 450 million and more than 1,000 employees, paragraph 127 the other undertakings, and the revised set has no 750-employee test, which belonged to the 2023 Appendix C and Delegated Regulation (EU) 2025/1416; see the phase-in provisions of the revised set.

Standard by Standard: What Changed in the Twelve Standards

Both sets have 12 standards, but the revised set has 75 disclosure requirements against 82, with renumbered codes, so the same disclosure can carry a different code in each set. Gross scope 1, 2 and 3 greenhouse gas emissions are E1-6 in the 2023 set and E1-8 in the 2026 set, and E3 is now titled "Water".

Where the Commission Departed from the Technical Advice

The Commission did not adopt EFRAG's technical advice unchanged: recital 3 of Delegated Regulation (EU) 2026/1563 lists the areas in which it changed the advice, starting with materiality and the materiality assessment. The areas named in recital 3 are listed below in the order of the recital.

• Materiality and the materiality assessment
• Fair presentation
• Aggregation and disaggregation
• Omission of information
• Anticipated financial effects
• Greenhouse gas emissions
• Climate transition plans
• Microplastics
• Emission of pollutants
• Substances of very high concern
• Asset management activities
• Human rights incidents and discrimination

Recital 2 adds a general objective, point (vi): "taking account, to the greatest extent possible, of interoperability with global sustainability reporting standards". EFRAG drafts the standards and gives technical advice; the Commission adopts the standards by delegated act. Only the act is law, so this page quotes the Official Journal text and never the advice as a rule. The adviser's position is described under EFRAG's technical role under the CSRD.

How to Report under the Revised Standards

Move a statement to the revised set in six steps, and keep the paragraph of the 2026 set behind each choice on file.

1. Confirm whether the company is in scope and from which financial year, with the CSRD scope check: more than 1,000 employees and a net turnover above EUR 450 million from financial year 2027, or wave 1 for financial years 2024 to 2026.
2. Choose the route for financial year 2026 under Article 2(1) and state the version in the sustainability statement under Article 2(2).
3. Redo the materiality conclusions under paragraphs 23 to 32 of the revised ESRS 1, including the top-down option of paragraph 27.
4. Map every 2023 disclosure requirement code to its 2026 code with the table above, starting with ESRS 2 and E1.
5. Use EFRAG's draft list of datapoints as support for the mapping, never as a checklist.
6. Plan the phase-ins of paragraphs 121 to 127 and run the work as a CSRD compliance plan.

The steps after the version choice are set out in our CSRD compliance plan.

What Is Still Open as of 29 October 2026

As of 29 October 2026, Delegated Regulation (EU) 2026/1563 is published but not yet in force, and EFRAG has not updated its implementation guidance for the revised set. EFRAG's implementation guidance IG 1 (materiality assessment), IG 2 (value chain) and IG 3 (datapoints) was issued in final form on 31 May 2024 for the 2023 set, and the ESRS Q&A Platform has been on hold since the end of 2025, according to EFRAG's implementation support page. The datapoint list for the revised set is still a draft.

This page gives no forecast for these points; the authoritative text remains the Official Journal version on EUR-Lex.

Questions on the Revised Standards

Five questions recur about the revised standards.

Is the revised set mandatory for financial year 2026?

No: for financial years beginning in 2026 it is optional under Article 2 of Delegated Regulation (EU) 2026/1563, and it becomes mandatory for financial years beginning on or after 1 January 2027. The statement must say which version it applies.

Is the 2023 set repealed?

No: Delegated Regulation (EU) 2023/2772 stays in force, and Article 1 of Delegated Regulation (EU) 2026/1563 replaces its Annexes I and II.

How many mandatory datapoints does the revised set contain?

EFRAG's draft list counts 292 "shall" datapoints in the revised set, against 783 in the 2023 set, general disclosure requirements excluded. The list is a draft aid, not the law.

What may companies ask of smaller suppliers under the revised set?

Under paragraph 66 of the revised ESRS 1, information a reporting undertaking may require from value-chain undertakings with up to 1,000 employees only comprises the datapoints in Annex II to Delegated Regulation (EU) 2026/1560. The same act holds the voluntary standard (VS, formerly VSME), described as the voluntary standard for smaller suppliers.

Is the 2024 implementation guidance still valid for the revised set?

EFRAG's implementation guidance IG 1 to IG 3, issued in final form on 31 May 2024, was written for the 2023 set and had not been updated for the revised set as of 29 October 2026.