Revised ESRS 2026: What It Means for XBRL Reporting

The revised European Sustainability Reporting Standards (ESRS) have now been published in the Official Journal of the European Union. The new rules enter into force on 10 November 2026 and apply to financial years beginning on or after 1 January 2027.

The revised standards were adopted by the European Commission in July 2026 as part of the Omnibus I simplification package. They reduce mandatory reporting data points by more than 60%, making sustainability reporting more focused.

For companies preparing sustainability reports, the changes are important not only because of the simplified reporting requirements, but also because of the development of the ESRS XBRL taxonomy and future digital reporting. If you are new to structured reporting, our what is XBRL guide is a good starting point.

What Has Changed Under the Revised ESRS?

The revised regulation replaces the previous ESRS standards set out in Delegated Regulation (EU) 2023/2772. The main changes are designed to make sustainability reporting more focused and practical.

Key changes include:

• Fewer mandatory datapoints
• Greater focus on quantitative information
• A clearer distinction between mandatory and voluntary datapoints
• Clearer application of the materiality principle
• Better alignment with other EU legislation
• Greater interoperability with global sustainability reporting standards
• A simpler structure and presentation of the standards

The overall direction is towards reporting information that is relevant and material rather than requiring companies to provide unnecessary information.

When Do the Revised ESRS Apply?

The revised ESRS apply to financial years beginning on or after 1 January 2027. The regulation itself enters into force on 10 November 2026.

For companies preparing for future reporting, 2027 is therefore an important compliance year for the simplified ESRS requirements. Companies should review their reporting period and determine which version of the standards applies to them.

Special Transition Rule for 2026

There are specific transition arrangements for financial years beginning between 1 January and 31 December 2026.

Companies covered by the existing ESRS may have options regarding the version of the standards they apply, including the previous ESRS or the revised ESRS introduced by Delegated Regulation (EU) 2026/1563. There is also an option involving the previous standards together with specific reliefs introduced by the new regulation.

Companies should review the applicable transitional provisions and clearly identify the version of the standards used in their sustainability statement.

Double Materiality Remains Important

Although the revised ESRS simplify reporting, double materiality remains an important part of the reporting process. Double materiality considers sustainability information from two perspectives.

Impact Materiality

This considers how a company's activities affect people and the environment. For example, a company may need to consider the impact of its operations on workers, communities, climate or natural resources.

Financial Materiality

This considers how sustainability-related risks and opportunities could affect the company's financial position, performance, cash flows, access to finance or cost of capital.

Companies need to consider both perspectives when determining which sustainability matters are material.

Companies Do Not Have to Report Everything

One of the important changes is the stronger focus on material information. If information covered by an ESRS disclosure requirement or datapoint is not material, a company generally does not need to disclose it simply because it appears in the standard.

This helps support the objective of reducing unnecessary reporting. For companies, this means the materiality assessment becomes an important part of deciding what information should be included in the sustainability statement.

A Top-Down Materiality Approach Can Reduce Work

Companies can use a top-down approach when assessing materiality. This can begin with factors such as:

• Business model
• Strategy
• Sector
• Geographical areas
• Upstream and downstream value chain

Where materiality is clear from this analysis, companies may not need to assess every individual impact, risk or opportunity separately. The revised rules also allow companies to combine top-down and bottom-up approaches where appropriate.

This can help companies focus their reporting work on the sustainability matters that are most relevant to their business.

Value-Chain Reporting Still Matters

The simplified ESRS do not remove the need to consider the value chain. Where necessary to understand material impacts, risks and opportunities, sustainability reporting may still need to include relevant upstream and downstream value-chain information.

However, companies do not need information about every individual supplier, customer or other value-chain participant. The focus remains on material information.

Data Estimates Can Be Used in Some Circumstances

Obtaining precise sustainability information from every supplier or customer may not always be practical. In certain circumstances, companies can use reasonable estimates or proxies for value-chain information. Depending on the situation, this may include:

• Information obtained directly from business partners
• Sector-average data
• Market data
• Sample analysis
• Peer data
• Spend-based data
• Other reasonable proxies

This provides companies with more practical ways to address value-chain reporting where complete direct information is not available.

What Areas Does ESRS Reporting Cover?

The sustainability statement is organised around four major reporting areas:

• Governance
• Strategy, including financial effects
• Management of impacts, risks and opportunities
• Metrics and targets

These areas provide the overall structure for presenting sustainability information. Companies should review their existing reporting processes against the revised requirements to identify where changes may be needed.

What Does This Mean for XBRL?

The next important step is the development of the ESRS XBRL taxonomy.

EFRAG is currently consulting on a draft XBRL taxonomy for the revised ESRS. The consultation is scheduled to close on 11 November 2026, with the final taxonomy expected to be submitted to ESMA and the European Commission by the end of 2026.

An XBRL taxonomy provides standard concepts that can be used to identify and structure information in a report. For sustainability reporting, the ESRS XBRL taxonomy will provide the structure needed to turn relevant ESRS information into machine-readable data. This can make sustainability information easier for software to process, analyse and compare. To see how tagging works in practice, read how XBRL tagging works.

How Does ESEF Fit In?

The European Single Electronic Format (ESEF) provides the framework for electronic reporting in the EU. XBRL tagging allows specific information in a report to be linked to standard taxonomy concepts. This structured approach is important for digital reporting because information can be identified and processed consistently rather than existing only as ordinary text. For listed companies, see our page on ESEF XBRL tagging in the Netherlands.

However, companies should note that ESRS digital tagging is not yet mandatory. The ESRS XBRL taxonomy is still being developed, and the regulatory framework for mandatory digital tagging of ESRS information still needs to be established.

Companies should therefore monitor developments from EFRAG, ESMA and the European Commission before making assumptions about future tagging requirements.

What Should Companies Do Now?

Companies preparing for the revised ESRS can start with a few practical steps.

1. Check CSRD and ESRS Scope

Confirm whether the company falls within the applicable CSRD and ESRS reporting requirements.

2. Check the Reporting Year

Identify the relevant financial year and determine which version of the ESRS applies.

3. Review the Double Materiality Assessment

Review both impact materiality and financial materiality and identify the sustainability topics that are relevant to the business.

4. Review Mandatory and Voluntary Datapoints

Understand which datapoints are mandatory and which are voluntary under the revised standards.

5. Review Value-Chain Data

Check what sustainability information is available from suppliers, customers and other relevant value-chain relationships.

6. Review Existing Reporting Systems

Assess whether current data collection and reporting systems can support the revised ESRS requirements.

7. Monitor the XBRL Taxonomy

Follow updates to the ESRS XBRL taxonomy as it moves through consultation and finalisation.

8. Prepare for Digital Tagging

Although ESRS digital tagging is not yet mandatory, companies can review how their reporting systems could support future XBRL tagging.

Conclusion

The revised ESRS move EU sustainability reporting towards a more focused model, with fewer mandatory datapoints and greater emphasis on material information. At the same time, double materiality and relevant value-chain reporting remain important.

For XBRL reporting, the development of the ESRS XBRL taxonomy is the next major step. Companies should review their reporting processes, monitor the taxonomy and prepare their data systems for future structured digital reporting. Contact XBRTags Netherlands if you would like support with XBRL and digital reporting.