Brussels: Today, the European Commission has initiated a consultation process for the draft revised European Sustainability Reporting Standards (ESRS) and a new voluntary sustainability reporting standard aimed at smaller enterprises. This move marks a significant step in the Commission's ongoing efforts to refine sustainability reporting across the European Union, targeting the reduction of administrative burdens while ensuring high-quality disclosures.
According to Cyprus News Agency, the ESRS encompass critical environmental, social, and governance issues, such as climate change, biodiversity, and human rights. These standards are designed to equip investors and stakeholders with essential information regarding the sustainability-related risks faced by companies and their impact on society and the environment. The new draft standards aim to simplify existing processes, cutting reporting costs by more than 30% per company and reducing mandatory data points by over 60%.
The revisions are informed by technical advice from EFRAG and stakeholder input gathered in 2025. The Commission is also proposing specific adjustments to lessen the burden on businesses without compromising the objectives of the Corporate Sustainability Reporting Directive (CSRD), which includes improving the quality, consistency, and comparability of sustainability reports across the EU.
Additionally, a draft voluntary standard is being introduced to aid companies not covered by mandatory CSRD reporting. This standard will establish a 'value chain cap,' limiting the information CSRD in-scope companies can request from value-chain partners with 1,000 employees or fewer.
Stakeholders are invited to provide feedback on the draft standards via the Have Your Say portal by June 3, 2026. Following this, the Commission will adopt the two delegated acts and submit them to the European Parliament and Council for scrutiny under the no-objection procedure.
For more information on the ESRS revisions and the draft voluntary standards, including details on the 'value chain cap,' resources are available online.