EU Adopts Revised ESRS and Voluntary Sustainability Reporting Standard

The European Commission has adopted the revised European Sustainability Reporting Standards and the Voluntary Sustainability Reporting Standard, now published in the Official Journal of the EU. EFRAG has welcomed the adoption, describing it as a step toward a more proportionate and practical sustainability reporting framework in Europe, and has made both standards available in an interactive format within its Knowledge Hub, with minor amendments from the Delegated Acts published on 3 July 2026 to be reflected in an updated version shortly.

 

The Voluntary Sustainability Reporting Standard specifically targets undertakings with fewer than 1,000 employees, providing a voluntary framework to structure and communicate sustainability information. Based on the VSME Recommendation previously developed by EFRAG, the standard is intended to help smaller companies respond to sustainability information requests from larger companies, investors and financial institutions through a proportionate reporting approach.

 

Read more: UN Global Compact Launches Sustainable Procurement Implementation Framework

 

Under the new standard, the European Commission has tasked EFRAG with updating and maintaining the associated guidance, previously part of the VSME Recommendation. EFRAG has published updated non-mandatory guidance in English on its Knowledge Hub and is engaging with National Standard Setters to translate the guidance into all European languages, with translations expected from November 2026. EFRAG will also release an updated Digital Template in November 2026, reflecting the changes introduced by the Voluntary Standard and adding features to its Excel to XBRL Converter to enhance customisation of the Inline XBRL report.