Commission Delegated Regulation (EU) 2026/1563 replaces the European Sustainability Reporting Standards (ESRS), implementing the simplifications introduced by Directive (EU) 2026/470. It enters into force on 10 November 2026 and applies to financial years beginning on or after 1 January 2027.
What Changes in the Revised ESRS
The regulation amends Delegated Regulation (EU) 2023/2772 by replacing the ESRS in Annexes I and II. The revised standards have fewer datapoints, prioritise quantitative disclosures over narrative text, separate mandatory and voluntary datapoints more clearly and give clearer guidance on the materiality principle.
Directive (EU) 2026/470 also reduces the number of undertakings in scope of Articles 19a and 29a of the Accounting Directive, which determines who must apply the standards.
What’s New
- Fewer datapoints, with quantitative datapoints prioritised over narrative text.
- Mandatory and voluntary datapoints are more clearly separated, with clearer materiality guidance.
- Simpler rules on aggregation, omissions and value-chain reporting, and closer alignment with other EU legislation and global reporting standards.
- For financial years starting in 2026, undertakings may apply the 2023 ESRS (as amended by Delegated Regulation (EU) 2025/1416), the new standards, or the 2025 version with specified reliefs, and must state which version they used.
Key Dates & Timeline
Who and What Is in Scope
Industries: All sectors with undertakings in scope of EU sustainability reporting, including light duty vehicles, heavy duty vehicles and automotive components
Who is affected: Undertakings in scope of Articles 19a and 29a of the Accounting Directive, and the suppliers who provide them with value-chain sustainability data.
Products and standards in scope: The revised European Sustainability Reporting Standards in Annexes I and II of Delegated Regulation (EU) 2023/2772.
Requirements and restrictions: Applies to undertakings within the Accounting Directive scope, as narrowed by Directive (EU) 2026/470. For 2026, a choice of standards version applies, which must be stated in the sustainability statement.
What Companies Should Do
- Confirm whether your entity remains in scope after Directive (EU) 2026/470.
- Decide which ESRS version to apply for financial years starting in 2026 and document the choice.
- Update datapoint mapping and supplier data requests to the reduced set of datapoints.
The ESRS become shorter and more quantitative from financial years starting in 2027. In-scope companies should choose their 2026 option now and re-map data collection to the revised datapoints.
Related: CARB Issues 2026 SB 253 Reporting Guidance
EUR-Lex — Commission Delegated Regulation (EU) 2026/1563 — https://eur-lex.europa.eu/eli/reg_del/2026/1563/oj/eng
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