Key data
| Regulation | Delegated Regulation (EU) 2026/1563 of the Commission, of 3 July 2026 |
|---|---|
| Modified standard | Delegated Regulation (EU) 2023/2772 (European Sustainability Reporting Standards — ESRS) |
| Higher framework | CSRD Directive (Corporate Sustainability Reporting Directive) |
| Publication | 21 September 2026 |
| Entry into force | Not specified in the published regulation |
| Affected parties | Large companies and listed entities required to report sustainability under the CSRD |
| Category | European Regulation |
| Context | European Commission Omnibus Package to reduce regulatory burdens |
If your company is required to submit sustainability reports under the CSRD, the regulation that defines exactly how you must do so has just changed. The Delegated Regulation (EU) 2026/1563, published on 21 September 2026, amends Regulation (EU) 2023/2772, which contains the European Sustainability Reporting Standards (ESRS). The objective is clear: less bureaucracy, same underlying obligation.
This amendment is part of the Omnibus package of the European Commission, a broader initiative to alleviate the regulatory burden on European companies and improve their competitiveness. It is not an isolated change: it is a signal that Brussels is adjusting the implementation of corporate sustainability after hearing complaints from the business community.
What does this regulation establish?
Delegated Regulation (EU) 2026/1563 specifically amends Regulation (EU) 2023/2772, which is the text that technically develops the ESRS applicable within the CSRD framework. The amendment acts on certain disclosure requirements, simplifying them without eliminating the obligation to report on sustainability.
In practical terms, the previous standard (2023/2772) established a set of reporting requirements that many companies considered excessively detailed and costly to comply with. This new delegated regulation adjusts those requirements so that the effort of data collection and presentation is proportionate.
| Element | Before (Regulation 2023/2772) | After (Regulation 2026/1563) |
|---|---|---|
| ESRS disclosure requirements | Complete set of high-detail requirements | Certain simplified requirements to reduce administrative burden |
| Administrative burden | High: granular data collection and complex templates | Reduced: simplification of certain disclosure points |
| Underlying obligation | Mandatory for CSRD companies | Remains fully in place |
| Reference framework | Original CSRD package | EU Omnibus package (reduction of regulatory burdens) |
It is essential to understand that simplification does not exempt from reporting. Companies remain obligated to submit their sustainability report in accordance with the ESRS; what changes is the level of detail or the way certain specific data is presented within that report.
Economic and operational impact
The most direct impact of this regulation is the reduction in compliance costs associated with ESRS reporting. Companies that had already begun building their sustainability data collection systems may find that some of those efforts were more extensive than what the regulation now requires.
The specific operational effects are:
- Review of reporting templates: companies will need to update their internal sustainability report templates to reflect the new simplified requirements.
- Adjustment of data collection processes: some internal data flows designed to comply with previous requirements can be simplified, freeing up resources.
- Review of contracts with ESG data providers: if the company outsources part of the reporting, contracts with ESG consultancies or data platforms may need adjustment.
- Internal communication: sustainability, finance and legal teams must coordinate to understand exactly which requirements have changed and which remain.
From a competitiveness perspective, this simplification is an opportunity to optimize the ESG compliance budget without sacrificing the quality of the report for investors, customers and regulators.
Who does it affect?
- Large companies required to report on sustainability under the CSRD Directive.
- Listed entities on regulated markets in the EU subject to ESRS requirements.
- CFOs and Chief Financial Officers responsible for preparing and overseeing the sustainability report.
- Chief Sustainability Officers (CSO) and ESG teams managing data collection and report drafting.
- Legal advisors and consultancies providing CSRD compliance services to obligated companies.
- Auditors and verifiers of the sustainability report, who will need to update their review procedures.
Companies that have not yet begun their adaptation to the CSRD should note that this simplification does not eliminate the obligation: the starting point remains compliance with the ESRS, now in its version updated by Regulation 2026/1563.
Practical example
Imagine a Spanish industrial company with more than 500 employees and listed on the continuous market, therefore subject to the CSRD and required to submit its sustainability report in accordance with the ESRS.
Under the original Regulation (EU) 2023/2772, this company had designed an internal process that involved collecting data from more than 15 different departments to cover all required disclosure points, with an estimated cost of several months of work by its sustainability team and support from an external consultant.
With the entry into force of Delegated Regulation (EU) 2026/1563, certain disclosure points are simplified. This company's sustainability team will need to:
- Identify exactly which requirements have been simplified in the new regulation.
- Review its ESRS report template to eliminate or reduce the affected sections.
- Communicate to the data-providing departments that certain information flows are no longer necessary with the same level of detail.
- Update the contract with its ESG consultant to reflect the new scope of work.
The result: a more agile reporting process, with lower operational costs, while maintaining full compliance with the obligation to report on sustainability.
What should companies do now?
- Identify if you are obligated by the CSRD: confirm whether your company falls within the scope of the CSRD Directive as a large company or listed entity. If you already knew this, this step is a verification.
- Review the text of Regulation 2026/1563: locate exactly which articles or annexes of Regulation (EU) 2023/2772 have been modified and in what way. The official source is the EU Official Journal.
- Update ESRS report templates: adapt your internal reporting documents to reflect the new simplified requirements, eliminating or reducing the affected sections.
- Review data collection processes: adjust internal information flows between departments so they are proportionate to the new requirements, freeing up unnecessary resources.
- Inform your team and external advisors: communicate the changes to the sustainability, finance, legal team and any external consultant or auditor involved in the reporting process.
- Monitor the entry into force date: the regulation does not specify a specific application date. Stay alert to official communications from the European Commission or the national regulator to avoid non-compliance due to ignorance of the deadline.
Frequently asked questions
Which companies are required to comply with ESRS under the CSRD?
Large companies and listed entities on regulated markets in the EU are required to submit sustainability reports in accordance with the ESRS within the CSRD Directive framework. Delegated Regulation (EU) 2026/1563 directly affects these companies, which must adapt their reporting processes to the new simplified requirements.
Does the simplification of Regulation 2026/1563 eliminate the obligation to report on sustainability?
No. The underlying obligation to submit the sustainability report in accordance with the ESRS remains fully in place. What changes are certain disclosure requirements, which are simplified to reduce administrative burden, but obligated companies must continue to prepare and publish their sustainability report.
When does Delegated Regulation (EU) 2026/1563 enter into force?
The regulation was published on 21 September 2026, but the entry into force date is not specified in the published information. Companies must monitor official communications from the European Commission and the EU Official Journal to know the exact application deadline.
What should I review in my internal processes after this simplification?
Companies should review their ESRS report templates and internal data collection processes to identify which requirements have been simplified. This may involve adjusting information flows between departments, updating contracts with ESG consultancies and communicating changes to auditors and verifiers of the report.
What is the European Commission's Omnibus package and what is its relationship to this regulation?
The Omnibus package is an initiative of the European Commission to reduce regulatory burdens and improve business competitiveness in the EU. Delegated Regulation (EU) 2026/1563 is part of this package: it is one of the concrete measures adopted to alleviate the administrative burden of sustainability reporting without eliminating the underlying obligations of the CSRD.
Official source
Consult complete regulation at official source
Disclaimer: This article is for informational purposes only and does not constitute legal advice. For specific decisions, consult a qualified professional. Source: https://eur-lex.europa.eu/./legal-content/AUTO/?uri=OJ:L_202601563
