Changes to the ESRS: what’s left of the reporting obligation
The European Commission has given the green light to the simplified ESRS within the Omnibus package. We go over who is still required to report and what to do if your company now falls outside the scope.
4 min read
On 3 July the European Commission approved the delegated act containing the simplified ESRS, the missing piece of the simplification package known as Omnibus, under way since March. Alongside it, a voluntary reporting standard (VSME) was also approved, aimed at companies falling outside the scope of the CSRD. Both are expected to come into force in the last quarter of 2026.
In practice, one of the key changes is the threshold: only companies with more than 1,000 employees and over €450 million in annual turnover are now required to report. That leaves the vast majority of companies that had spent months preparing to report — around 90% of them — outside the mandatory perimeter.
The ESRS themselves have been trimmed down considerably: fewer data points, fewer indicators, with the aim of easing the reporting burden without giving up double materiality, which remains a founding principle. Those still within scope will apply this simplified version from financial year 2027, with a transition regime during 2026 allowing for different application routes.
What does not change as quickly is commercial pressure. Large customers along the value chain will keep asking their suppliers for ESG data, especially the carbon footprint, still the most requested figure. Falling outside the legal obligation does not mean falling outside that conversation with your customers. Having your double materiality and key indicators already calculated helps embed sustainability into company strategy, and is a competitive advantage over suppliers who will have to start from scratch when they are asked.
If you’re not sure whether your company is still within scope, or what is worth reporting even on a voluntary basis, get in touch with us.
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