On 3 July 2026 the European Commission adopted the delegated regulation on the revised ESRS. The message is twofold: the obligations become leaner, while the expectation of robust, auditable reporting remains.
For companies, the simplification is therefore not a retreat but an opportunity. Reinvesting the freed capacity into data quality and steering, rather than simply reporting less, is where the real value lies. This article frames the changes and lays out the options for 2026.
- Over 60 percent fewer mandatory and over 70 percent fewer data points in total.
- The architecture stays: two cross-cutting and ten topical standards.
- The double materiality assessment becomes top-down and leaner.
- GHG reporting boundaries are fully aligned with the GHG Protocol.
- Mandatory from financial year 2027, with three options for 2026.
The real shift: simplification as a strategic opportunity
The revision cuts data points substantially, yet effort and cost do not fall to the same degree. The difference between a compliance report and a useful one is not decided by the number of data points, but by whether materiality is connected to strategy, steering and investment planning. That is exactly where the leaner rules create an opening.
What is removed and what stays
The number of data points drops sharply, while the architecture of two cross-cutting and ten topical standards stays. The ESRS are explicitly confirmed as a fair-presentation framework, the former minimum disclosure requirements become general disclosure requirements, and application requirements no longer add data points. The informed assessment concept from the draft was dropped, also to support interoperability with the ISSB standards.
The double materiality assessment becomes leaner
Companies can now work top-down, start with obviously relevant topics and use reasonable and supportable information available without undue cost or effort. For the value chain, regional, sector or generally available data suffice, an exhaustive search is not required, and a qualitative assessment can be enough. The topic list now serves as guidance, not a checklist.
GHG reporting: alignment with the GHG Protocol
The GHG accounting boundaries in E1 are fully aligned with the GHG Protocol. Companies choose between financial control, operational control and the equity share approach. Important for planning: the GHG Protocol is itself under revision, the equity share approach is under discussion, and a final version is expected around the end of 2027.
Your options for financial year 2026
For 2026, companies have three routes. The chosen version must be disclosed transparently in the sustainability statement.
| Option | What it means | When it fits |
|---|---|---|
| Keep Set 1 | Continue reporting under the current version | when processes run on Set 1 and no switch is due |
| Apply V2.0 early | Use the revised ESRS already for 2026 | when you want the simplifications immediately |
| Set 1 plus reliefs | Combine Set 1 with selected reliefs | when you want to transition gradually and cut effort |
The roadmap
After adoption on 3 July 2026, a two-month scrutiny period by Council and Parliament runs, extendable once by two months. The revised ESRS are mandatory for financial years from 1 January 2027, and voluntary early application for 2026 is possible. Note that national transposition of the CSRD is still outstanding in some member states, including Germany.
How we support
Econetix, a carbon asset manager and ESG advisory, supports implementation: from the double materiality assessment under the new rules to assurance-ready data and accounting processes, to ESRS-compliant reporting and alignment with the EmpCo Directive.
Frequently asked questions
What are the revised ESRS?
The revised European Sustainability Reporting Standards are the substantially streamlined version of the CSRD reporting standards, adopted by the European Commission on 3 July 2026.
When do the revised ESRS apply?
They are mandatory for financial years from 1 January 2027. Voluntary early application for financial year 2026 is possible.
How far do the data points fall?
Mandatory data points fall by over 60 percent and total data points by over 70 percent compared with Set 1.
What changes in the double materiality assessment?
It becomes top-down, uses reasonable and supportable information, and allows regional and sector data for the value chain. An exhaustive search is no longer required.
What options exist for 2026?
Companies can stay on Set 1, apply the revised ESRS early, or combine Set 1 with selected reliefs. The chosen version must be disclosed.
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Subscribe nowSources: European Commission delegated regulation on the revised ESRS (3 July 2026); EFRAG; IDW.
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Catharina Ahmadi
