--- title: "EU Finalized Revised ESRS: What Companies Need to Know" description: On September 21, 2026, the EU published the revised ESRS in its Official Journal as (EU) 2026/1563. Here's what companies need to know. image: https://pages.thirdeconomy.com/hubfs/activism%20defence%20link%20graphic%20with%20logo.jpg --- [![Third-Economy-logo-horizontal-1](https://pages.thirdeconomy.com/hs-fs/hubfs/Third-Economy-logo-horizontal-1.png?width=1500&height=381&name=Third-Economy-logo-horizontal-1.png "Third-Economy-logo-horizontal-1")](https://www.thirdeconomy.com/) [SUSTAINABILITY SERVICES](https://www.thirdeconomy.com/corporate-services/) [INVESTOR SERVICES](https://www.thirdeconomy.com/investor-services/) [VIA3](https://www.thirdeconomy.com/ratings/) [ABOUT](https://www.thirdeconomy.com/about/) [NEWS & EVENTS](https://www.thirdeconomy.com/news-events/) [CONTACT](https://www.thirdeconomy.com/contact/) ![Thought Leadership Webpage Graphic-1](https://pages.thirdeconomy.com/hubfs/Thought%20Leadership%20Webpage%20Graphic-1.png "Thought Leadership Webpage Graphic-1") ## EU Finalized Revised ESRS: What Companies Need to Know ***By Malin Clark, Partner and Head of Consulting, October 2026*** On September 21, 2026, the EU [published](https://eur-lex.europa.eu/eli/reg_del/2026/1563/oj) the revised European Sustainability Reporting Standards (ESRS) in its Official Journal as Commission Delegated Regulation (EU) 2026/1563. The European Commission adopted the standards on July 3, 2026, and the European Parliament and Council did not object during their two-month review. **Key dates:** - November 10, 2026: The revised standards enter into force. - January 1, 2027: The revised standards become mandatory for financial years starting on or after this date. - 2028: Calendar-year companies publish their first reports under the revised standards. The EU also published a companion regulation, (EU) 2026/1560, which creates a Voluntary Standard (VS) for companies outside the scope of the Corporate Sustainability Reporting Directive (CSRD). It entered into force on September 24, 2026. What Changed? The revised standards are the main technical piece of Omnibus I, the EU's package to simplify sustainability reporting. Mandatory CSRD reporting now applies only to EU companies with more than 1000 employees and more than €450 million in net turnover. Within the standards, the key changes are: - **Double materiality stays,** so companies still assess both their impacts on people and the environment and how sustainability issues affect their finances. - **Fewer datapoints, with materiality as the filter.** Mandatory datapoints drop by about 61% from the 2023 version, and materiality now decides what gets reported, including in the general disclosures (ESRS 2). The standards are not a checklist: companies report what is relevant to them. - **More time on anticipated financial effects.** Companies reporting for financial years starting in 2024 through 2026 can leave out anticipated financial effects until FY2028, and the quantitative figures until FY2030. This relief runs one year longer than in the Commission's May 2026 draft. - **Closer alignment with global standards.** Greenhouse gas reporting is now more consistent with international standards, and financial materiality is closer to IFRS S1, the ISSB's general sustainability disclosure standard. - **A cap on value chain requests.** Under Omnibus I, in-scope companies cannot ask value chain partners with 1,000 or fewer employees for more information than the Voluntary Standard covers. What's Still to Come? While the standards are final, several supporting pieces are still in progress: - **Datapoint list.** EFRAG is taking feedback on its updated list of ESRS datapoints until October 23, 2026. A final version is expected by year-end. - **Digital tagging.** EFRAG is consulting on a draft XBRL taxonomy, the format for machine-readable reports, until November 11, 2026. It plans to deliver the final version to ESMA and the Commission by year-end. - **Assurance standards.** The Commission must adopt limited assurance standards by July 1, 2027. Omnibus I dropped the planned move to reasonable assurance. - **Non-EU groups.** Separate standards for non-EU groups with significant EU activity (ESRS-TC) are still being developed. The Commission expects to adopt them in 2027. - **National laws.** EU Member States have until March 19, 2027 to write the Omnibus I changes into national law. What Does This Mean for Companies? Your next steps depend on when, or whether, your company must report. - **Reporting on FY2026.** Pick your transition option. Switching early avoids a second change in 2027, but first check that your materiality assessment, data collection, and documentation are ready. Using the existing ESRS with selected reliefs is a middle ground. - **Starting mandatory reporting in FY2027.** Build your process around the revised standards from day one. Confirm your scope and timeline, assign data owners, and set up controls for material disclosures. Remember that January 1, 2027 is when the reporting year starts, not when the report is due. - **Outside mandatory scope.** Use the Voluntary Standard to answer sustainability data requests. Customers, lenders, and investors may still ask for information. For every company, this is a chance to simplify: identify the relevant metrics, ensure data collection is in place upfront, focus the information that matter, and keep documentation that will hold up to assurance. If we can be helpful as you consider how these insights will affect your business, please don't hesitate to reach out to our team.   Contact us: Abbe Billings, Partner, Third Economy [abbe.billings@thirdeconomy.com](mailto:abbe.billings@thirdeconomy.com)   *Disclaimer: The information provided does not, and is not intended to, constitute legal advice; instead, all information, content, and materials available are for general informational purposes only.* [Schedule Time with our Experts](mailto:abbe.billings@thirdeconomy.com) - Turning visitors into leads. ### Want to receive our latest news and events? [Sign up here](https://www.thirdeconomy.com/contact/) --- ![Logo-1](https://pages.thirdeconomy.com/hs-fs/hubfs/Logo-1.png?width=200&height=47&name=Logo-1.png "Logo-1") #### CONTACT ## Third Economy is a sustainable investment research and consulting firm. We work with corporations and institutional investors to understand how sustainability factors impact financial value. 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