The revised ESRS are part of the EU’s broader Omnibus I initiative, which seeks to simplify sustainability reporting and reduce the administrative burden associated with the CSRD framework. The revision follows the European Commission’s broader review of sustainability reporting requirements and its mandate to EFRAG to develop a more streamlined set of standards. The objective is to make sustainability reporting more proportionate and focused while retaining information relevant to a company’s sustainability impacts, risks and opportunities. The revised standards therefore seek to reduce reporting complexity without changing the fundamental role of sustainability disclosures under the CSRD.
The revised ESRS introduce several changes intended to make sustainability reporting more focused and proportionate.
The revised standards significantly reduce the mandatory datapoints. EFRAG’s technical advice estimated a 61% reduction in mandatory datapoints compared with the 2023 ESRS, rising to 71% when the former voluntary datapoints are included in the comparison. This allows companies to focus their reporting efforts on information that is relevant to their sustainability impacts, risks and opportunities.
The revised framework provides greater clarity around the application of materiality, reinforcing the need for companies to focus on sustainability matters that are relevant to their impacts, risks and opportunities. For companies, this reinforces the importance of a well-supported double materiality assessment as the basis for determining which sustainability information is material and therefore needs to be reported.
The revised ESRS place greater emphasis, where appropriate, on quantitative datapoints and aim to reduce unnecessary narrative disclosures. This can help make sustainability information more structured and comparable while reducing reporting complexity.
The revised ESRS place greater emphasis, where appropriate, on quantitative datapoints and aim to reduce unnecessary narrative disclosures. This can help make sustainability information more structured and comparable while reducing reporting complexity.
The revised standards also seek greater alignment with other sustainability reporting frameworks and standards, including the ISSB Standards. This can help companies identify areas of common reporting requirements, although reporting under the ESRS does not necessarily satisfy all requirements under other frameworks.
The revised ESRS should be read alongside the broader changes to the CSRD introduced through the EU Omnibus I reforms. The amended framework narrows the population subject to mandatory sustainability reporting. Under the revised Article 19a, the general threshold applies to undertakings exceeding both €450 million in net turnover and an average of 1,000 employees during the financial year. Companies that remain within the revised CSRD scope will apply the revised ESRS to financial years beginning on or after 1 January 2027. For companies outside the mandatory scope, sustainability reporting may still be relevant for commercial, financing or value-chain purposes. At the same time, Omnibus I introduces protections for smaller value-chain companies: undertakings with up to 1,000 employees that fall within the value chain of a reporting company are subject to a value-chain cap on sustainability information that may be requested for CSRD reporting purposes. This makes it important for organisations to understand not only whether they are directly subject to the CSRD, but also what sustainability information they may need to collect and what information may be requested from their own value-chain partners.
With the revised ESRS applying from financial years beginning on or after 1 January 2027, companies should use the transition period to reassess their reporting approach.
Confirm whether the organisation remains within the revised CSRD scope and determine which ESRS requirements will apply to its reporting period.
Revisit material sustainability impacts, risks and opportunities and ensure that the assessment provides a clear basis for the disclosures being reported.
Compare current datapoints against the revised requirements to identify what remains relevant, what has changed and what can be removed.
Assess whether sustainability information requested from suppliers and other business partners is proportionate and aligned with material reporting requirements.
A smaller reporting requirement does not eliminate the need for reliable data. Companies should continue strengthening data ownership, documentation, controls and internal review processes to support credible sustainability disclosures.
Track EFRAG updates to the revised ESRS datapoint list, XBRL taxonomy and implementation resources as they are finalised.
The publication of the revised ESRS provides the final legal framework, but supporting resources for implementation are still developing. EFRAG (European Financial Reporting Advisory Group), which provides technical advice to the European Commission on sustainability reporting standards, is continuing to develop resources to help companies navigate the revised ESRS. In August 2026, EFRAG published its 2026 Draft List of ESRS Datapoints, providing a reference for companies preparing for the revised reporting requirements. The draft list is currently open for public fatal-flaw review until 23 October 2026, with the final resource expected by the end of 2026. EFRAG has also released a Draft XBRL Taxonomy for the revised ESRS. The taxonomy supports the digital representation of ESRS disclosures and is open for public consultation until 11 November 2026, with EFRAG planning to submit the final taxonomy to ESMA and the European Commission by the end of 2026. EFRAG has also confirmed that its existing ESRS Implementation Guidance has not yet been updated for the revised standards. The 2026 Draft List of Datapoints is intended as supporting material and does not constitute official implementation guidance. For companies preparing for 2027 reporting, the final ESRS should therefore serve as the foundation for reviewing existing reporting processes, data requirements and internal controls, while organizations continue to monitor supporting resources and implementation developments. The shift is therefore not simply from more reporting to less reporting. It is towards more focused, material and decision-useful sustainability information. For companies, this transition creates an opportunity to reassess not only what they report, but also how sustainability data is collected, governed and used across the organization.
Cognitud helps organizations navigate the revised ESRS by translating regulatory requirements into practical reporting and data processes. Our support includes assessing CSRD and ESRS applicability, conducting or refreshing double materiality assessments, mapping existing disclosures against the revised requirements, and identifying reporting gaps and redundancies. We also support organizations in strengthening sustainability data governance, reviewing value-chain information requirements and preparing reporting processes for upcoming reporting cycles. As the regulatory landscape continues to evolve, Cognitud helps businesses translate changing requirements into focused, reliable and decision-useful reporting systems.
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Abhigyan Gupta
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The CSRD is an EU directive that sets sustainability reporting requirements for certain companies. It determines which companies are required to report and establishes the broader framework under which sustainability information is disclosed using the ESRS.
A double materiality assessment identifies sustainability matters from two perspectives: how a company impacts people and the environment, and how sustainability matters create risks and opportunities for the company. It helps determine which topics are material for sustainability reporting.
The International Sustainability Standards Board (ISSB) develops global sustainability disclosure standards focused on information that is useful to investors when assessing a company’s sustainability-related risks and opportunities.
The revised ESRS simplify sustainability reporting by reducing the number of reporting datapoints, strengthening the focus on material information, placing greater emphasis on quantitative disclosures and improving interoperability with other sustainability reporting standards.
EFRAG (European Financial Reporting Advisory Group) provides technical advice to the European Commission on sustainability reporting standards. It has supported the development and revision of the ESRS and is developing resources such as the revised ESRS datapoint list and XBRL taxonomy to support implementation.
