Commission Delegated Regulation (EU) 2026/1563 sets 10 November 2026 as its date of entry into force. The simplified ESRS, a rewritten version of the European Sustainability Reporting Standards, replace the 2023 text for financial years starting on or after 1 January 2027. This entry into force does not yet change reports in progress: it sets the framework for the next cycle and opens an option for financial year 2026.
Here are the essentials, with the facts taken from the texts in the Official Journal of the European Union (OJEU).
What Regulation 2026/1563 provides
Commission Delegated Regulation (EU) 2026/1563, adopted on 3 July 2026 and published in the OJEU on 21 September 2026, amends Delegated Regulation (EU) 2023/2772. Its Article 1 replaces Annexes I (the standards) and II (the glossary).
Two dates not to confuse:
- 10 November 2026: date of entry into force set by Article 3;
- 1 January 2027: application to financial years starting on or after that date.
The framework keeps 12 standards: ESRS 1 and 2, E1 to E5, S1 to S4 and G1. According to the Commission, mandatory data points fall by more than 60% and total data points by more than 70%, with reporting costs down by more than 30% per company. These are Commission estimates.
What it changes for 2026 and 2027
Financial year 2026. Article 2 leaves the choice to the undertakings concerned. They may apply the 2023 ESRS amended by Regulation 2025/1416, the new ESRS, or the 2023 ESRS with eight reliefs from the new text, including the top-down approach to double materiality (ESRS 1 §27). The undertaking states clearly in its sustainability statement which version it applies.
Financial year 2027. The revised ESRS apply mandatorily. For a calendar-year company, the first report under this framework is published in 2028.
Scope. It is governed by Directive (EU) 2026/470, in force since 18 March 2026: more than EUR 450 million net turnover and more than 1,000 employees on average, two cumulative thresholds, from financial years starting on 1 January 2027. Transposition is due by 19 March 2027 at the latest. Transposition into national law is a matter for each Member State.
For the full framework of the directive, see our CSRD directive guide. For the protection of companies with 1,000 employees or fewer, see the article on the voluntary standard.
What is left to do for a sustainability team
The regulation sets the framework; it calls for organisational work:
- decide the framework applied to financial year 2026 and prepare the statement in the sustainability statement;
- review the double materiality assessment in light of the revised text;
- redo the inventory of data points requested in each material standard;
- revisit scope 3: screening of the 15 categories, annual update of significant categories, full inventory at least every three years (ESRS E1, AR 24).
These points are organisational recommendations. The choice of an option rests with your lawyer or adviser. Our full dossier on the simplified ESRS details the changes standard by standard, the phase-in and an action list through the 2027 close.
FAQ: the entry into force of the simplified ESRS
Do the simplified ESRS apply to my report as soon as they enter into force?
Not necessarily. The regulation provides for entry into force on 10 November 2026, but it applies to financial years starting on or after 1 January 2027. For financial year 2026, the undertaking can choose between the 2023 ESRS (with or without reliefs) and the new ESRS, stating it in its sustainability statement.
Is my company still in scope of the CSRD?
If it exceeds both EUR 450 million net turnover and 1,000 employees on average (consolidated for a group), yes, for financial years starting from 1 January 2027 under Directive 2026/470. Listed SMEs are out of scope. National transposition is due by 19 March 2027 at the latest.
Is there a European assurance standard?
Not yet. The Commission must adopt limited assurance standards by delegated act by 1 July 2027 at the latest, and the provision for reasonable assurance standards is removed. In France, assurance providers follow the H2A guidelines of January 2026 in the meantime.
Conclusion
Regulation 2026/1563 sets the entry into force of the simplified ESRS for 10 November 2026: 12 standards kept, fewer data points, application from financial year 2027 and an option open for 2026. To prepare your carbon data for the ESRS E1 requirements, you can contact the Kabaun team.
Official sources
- Delegated Regulation (EU) 2026/1563: https://publications.europa.eu/resource/celex/32026R1563
- Directive (EU) 2026/470: https://publications.europa.eu/resource/celex/32026L0470
- European Commission, press release of 3 July 2026: https://finance.ec.europa.eu/news/commission-adopts-revised-sustainability-reporting-standards-2026-07-03_en
