EU Commission Publishes Revised ESRS Draft Cutting Mandatory Datapoints by 61%

The European Commission has published new drafts of its revised European Sustainability Reporting Standards (ESRS) and a new Voluntary Sustainability Reporting Standard, opening a consultation that closes on 3 June. The proposed revised ESRS reduces mandatory datapoints by 61% relative to the current standard, with total datapoints reduced by more than 70% including the elimination of all voluntary disclosures.

The revised ESRS retains most changes proposed in EFRAG's December 2025 technical advice, with the Commission adding targeted modifications primarily aimed at clarifying provisions and increasing flexibility. A notable change allows companies to use either a financial control or operational control approach when determining which entities' emissions are included in their GHG inventory, aligning the ESRS more closely with global standards. Companies reporting transition plans with targets incompatible with 1.5°C pathways will be required to disclose this explicitly.

The Omnibus I package approved by EU lawmakers earlier this year reduced the number of companies subject to mandatory CSRD reporting by 90%, removing companies with less than €450 million in revenue and 1,000 employees. The new voluntary standard, based on the VSME endorsed by the Commission last year, will govern sustainability information that larger companies can request from smaller supply chain partners, with protections limiting the scope of such requests. The Commission maintained the ESRS's double materiality approach — requiring companies to report both how sustainability issues affect them financially and how they impact society and the environment — despite earlier reports of potential alignment with the ISSB's single materiality framework.

Once adopted, the delegated acts will be transmitted to the European Parliament and Council for scrutiny and will enter into force after two months if neither legislative body objects. The revised standards will apply to the reduced universe of large companies still within CSRD scope. For Indian companies exporting to or operating in the EU, understanding the revised mandatory datapoints and the scope of value chain information requests under the voluntary standard is essential for managing supply chain compliance demands from European customers.

Key figure — 61% reduction in mandatory ESRS datapoints compared to the current standard