Revised ESRS 
In early July 2026 the EC is expected to issue revised European Sustainability Reporting Standards (ESRS) as a Delegated Act (DA) based on the suite of draft simplified ESRS developed by EFRAG. The EC is close to completing its due diligence. On 3 June 2026 the EC closed its one-month public consultation on the revised ESRS and on the voluntary sustainability reporting standard for smaller companies (VS). The Belgian Institute of Auditors published a table comparing the EC consultation draft of the revised simplified ESRS with the draft the EC received from EFRAG in December 2025 - see here. The changes made are largely ones of clarification rather than substance. A few days before the consultation closed Copenhagen Business School held an online event, “Assessing the Revised ESRS: Burden Reduction or Dilution of Reporting?” – access the recording here. And immediately afterwards Corporate Disclosures summarized the most controversial issues.
Over 450 submissions were received, most from Belgium (where many industry associations are registered), Germany, France, and the Netherlands. Concerns expressed included: open-ended reliefs (e.g., "undue cost or effort") should be made temporary; scope of the exemptions for asset managers needs further clarification; the definition of "positive impacts" remains unclear; and the intense debate around anticipated financial effects. Overall, the revised ESRS were broadly welcomed by respondents. See all the responses here: Accountancy Europe’s and EFAA for SMEs’ are highly supportive.
As the public consultation of the revised ESRS closed to did the consultation on a voluntary sustainability reporting standard for smaller companies (VS) (see below): the EC must also adopt the VS by way of a DA at the same time as the DA for the revised ESRS. Once the EC submits the final text of the DA, the Parliament cannot amend individual provisions; it can only object to the whole DA. If neither the Parliament nor the Council objects during the scrutiny period, the DA automatically enters into force.

Guidance on ESRS
Late last year EFRAG launched the ESRS Knowledge Hub to help users navigate the ESRS, including the VSME, and implementation materials developed by EFRAG. With a free Knowledge Hub account – register here - users can navigate the full EFRAG Technical Advice in a user-friendly format as well as see how the revised standards compare with the 2023 ESRS. Once adopted by the Commission as a delegated act, the final simplified ESRS will also be available in an interactive format.
Sustainability Reporting Navigator (SRN) have updated their ESRS Revision Impact Analysis to reflect the draft simplified ESRS handed to the EC in December 2026. SRN have duly updated their ESRS revised datapoint list and provide the editable Excel sheet for free here. SRN are expected to update their datapoint list once the draft simplified ESRS become a delegated act.

VSME
On 15 June 2026 EFRAG held the Second SME Forum Meeting – see the recording here. The EC officially adopted EFRAG’s VSME as a Recommendation in late July 2025. Since then, EFRAG has been ramping up implementation support. In late April 2026 EFRAG released this educational video in 16 EU languages to help SMEs understand the different functionalities of the VSME section of the Knowledge Hub. Non-listed SMEs are invited to share their reports by 31 July 2026 so as to help EFRAG identify emerging practices and good examples to support other SMEs starting their sustainability journey. Keen to ‘walk the talk’ EFRAG has published its first Sustainability Report using the VSME. The report has been prepared using the VSME Digital Template and Converter.
On 26 June 2026 EFRAG and the OECD co-hosted a webinar, “Boosting SME Sustainable Finance – Leveraging Digitalisation and Voluntary Sustainability Reporting”, to share the latest insights on how digitalisation and voluntary sustainability reporting can enhance SMEs’ access to sustainable finance. During the event EFRAG publicly announced the release of the second edition of two mappings to support the application of the future VS and the VSME Recommendation – mapping of digital tools and mapping of digital platforms and initiatives. Similarly, the OECD announced a new policy paper “Leveraging AI and digital tools for SME sustainable finance” that examines how artificial intelligence (AI) and digital tools can help SMEs access sustainable finance.

Voluntary Standard (VS)
As noted above on 3 June 2026 the EC closed its public consultation on a voluntary sustainability reporting standard for smaller companies (VS). See the responses here: Accountancy Europe’s and EFAA for SMEs responses are highly supportive. The draft VS will support companies outside mandatory CSRD reporting and establishes a ’value chain cap’, preventing CSRD in-scope companies from requiring more information from value-chain partners with 1,000 employees or fewer than what the voluntary standard covers.
On 20 May 2026 EFRAG hosted an SME Forum Informative session with the EC on the VS. Watch the recording by registering here and read the highlights in this Corporate Disclosures article. The VS is almost identical to the VSME. The Belgian Institute of Auditors has published a table comparing the EC consultation draft of the VS with the VSME prepared by EFRAG - see here. The EC must adopt the delegated act establishing the VS by July 2026, in concert with the adoption of the simplified ESRS. Once adopted the VS will supersede the VSME. The EC is expected to launch a dedicated portal that will include new templates and guidance suited to larger entities that are eligible to use the VS.
Some believe the VS is ill-suited to companies employing up to 1,000 since the VSME on which it’s based was developed for much smaller companies and, accordingly, recommend that large companies outside the scope of the revised CSRD should report according to the simplified ESRS rather than the VS.

European Sustainability Reporting Standards for non-EU companies (N-ESRS)
On 18 June 2026 EFRAG SRB discussed exposure draft (V1) of the N-ESRS for non-EU groups. In this closed session members discussed V1, shared their voting intentions, and identified the remaining issues in preparation of the approval. EFRAG aims to provide its technical advice to the EC by early 2027, after the publication of the ED for public consultation planned from July 2026 for 100 days.
In this LinkedIn post Position Green Senior Director Simon Taylor shares his reactions as well as a markup version showing the changes between the simplified ESRS and the proposed N-ESRS. The suite of N-ESRS comprise 12 standards, 2 cross-cutting and 10 topical standards, mirroring the ESRS structure. The standards focus only on impacts and as such do not include anticipated financial effects. Fair presentation remains the overall reporting objective, but the focus is only on material impacts and how they are managed. Definition of users, upstream and downstream value chain, incorporation by reference, and transitional provisions are the same as or aligned with ESRS. The N-ESRS offer three reporting options: 1) global approach; 2) a mixed approach; and 3) a voluntary application of full ESRS.
The largest share of the estimated 1,200 companies (down from around 10,000 pre-Omnibus) within scope of the N-ESRS come from the United States, followed by the United Kingdom, Switzerland and Japan and are some of the world’s largest multinational groups. From the EU’s perspective, the N-ESRS is about creating a level playing field. If large non-EU groups generate significant revenues in the EU, they should be subject to sustainability reporting expectations comparable to those applied to EU companies. But outside Europe, the affected companies and their governments may see the N-ESRS less as a level-playing-field measure and more as the EU extending its regulatory expectations beyond its borders. Encouragingly in this LinkedIn post Abrial Gilbert-d’Halluin reports that many US lawmaker welcome the EU’s ambitious climate accounting rules.
As it prepares to issue the N-ESRS ED EFRAG is looking for a service provider to conduct the Cost and Benefit Analysis (CBA) supporting the development of the standard. EFRAG is also inviting companies to participate in the field testing (the deadline closed on 1 July 2026).

EFRAG’s 2026 Conference
On 8 June 2026 EFRAG held its 25th anniversary conference: 25 Years of EFRAG: Leading the Next Era of Corporate Reporting. Watch the replay here and discover key insights on EFRAG's evolution here. A report on the event will follow.

EFRAG’s Future Activities
In this LinkedIn Pulse article Chiara Del Prete, EFRAG SR Technical Expert Group (TEG) Chair looks at what’s next after the Omnibus and considers the opportunities and challenges of ESRS and voluntary reporting. EFRAG has submitted its sustainability reporting work programme 2026 to the EC. The key priorities include development of N-ESRS for non-EU groups (see above), continuation of the SME ecosystem, implementation support, advancing interoperability, and accelerating digitalization. The Governance & Accountability Institute compares this plan with that of the ISSB here.

Connectivity Discussion Paper
In late 2025 EFRAG released its Discussion Paper on Connectivity of Financial and Sustainability Reporting. Comments are due by 30 June 2026. Read morehere. EFRAG’s recent conference included a session on connectivity: this Corporate Disclosures article provides a summary and Gabriella Lovas drills deeper in this LinkedIn post.

EFRAG Updates
The May 2026 EFRAG Update report – summarizing recent public technical discussions and decisions taken, open consultations, future events, and vacancies – is here. The related sustainability and financial reporting podcast episodes are available on the EFRAG Spotify and YouTube channels. For more regular updates you can subscribe for the EFRAG Sustainability Reporting Weekly Newsletter.
The EFRAG General Assembly (GA) and the EFRAG Sustainability Reporting Board (SRB) has made a series of appointments to the organisation’s bodies at their recent meetings. Read more here.

European Banking Authority (EBA) Amends Pillar 3

On 22 June 2026 the EBA published its final draft Implementing Technical Standards (ITS) amending the Pillar 3 disclosure framework on ESG risks and introducing disclosure requirements on equity and shadow banking exposures as part of a simplification effort. The ITS are aligned with the ESRS and with the EBA draft ITS on ESG reporting requirements, which are currently under consultation.

IFAC Report
An updated report from IFAC shows that the global sustainability reporting ecosystem is becoming less fragmented as more of the world’s largest companies begin to adopt or form plans to use the ISSB standards and ESRSs,. The report, The State of Play: Sustainability Disclosure and Assurance (Six-Year Trends and Analysis, 2019-2024), is the sixth annual benchmark of sustainability reporting and assurance practices of global companies in G20 jurisdictions. A third of companies with sustainability information disclosures in 2024 referenced the use or future use of ISSB standards, compared to only 16 percent that did so the previous year. Similarly, 20 percent of companies that disclosed sustainability information in 2024 said they used or plan to use ESRS.

 

ISSB Update
This ISSB Update summarises the June 2026 International Sustainability Standards Board (ISSB) meeting.

SASB Standards
The ISSB’s public consultation on proposed amendments to three SASB Standards and consequential amendments to the industry-based Guidance on Implementing IFRS S2 closes on 24 July 2026. EFRAG has consulted on its Draft Comment Letter.

ISSB Adoption
This webpage hosts a list of ongoing and completed jurisdictional consultations on sustainability-related disclosures. On 30 June 2026 there was one open sustainability disclosure consultation – Switzerland. The Jurisdictional Readiness Assessment Guide and associated tool supports jurisdictions in assessing how prepared their markets are for the adoption or other use of ISSB Standards: the guide provides practical examples drawn from the experiences of some of the 40 or so jurisdictions that have already taken steps to adopt or otherwise use ISSB Standards.
This IFAC article looks at Indonesia’s adoption while this this article examines Malaysia’s use of ISSB standards. Corporate Disclosures reports that while Canada is providing some financial support to the ISSB it will not adopt its standards yet. Corporate Disclosures also reports that the Brazilian securities commission has issued a resolution removing the mandatory requirement for listed companies to report under Brazilian aligned ISSB standards (CBPS): instead CBPS will be voluntary (for now).
In early May 2026 the ISSB Chair Emmanuel Faber explained the jurisdictional ‘passporting’ project in a speech at the IFRS Foundation’s 2026 International Sustainability Conference in Beijing (watch the conference recording here). Faber said passporting would allow, in those jurisdictions, foreign private issuers and subsidiaries of international companies that operate in a domestic jurisdiction to report against the requirements in that jurisdiction using the ISSB Standards as issued by the ISSB.

ISSB Implementation Support
All ISSB support materials for IFRS Sustainability Disclosure Standards are hosted here. Most recently the IFRS Foundation launched a new webpage hosting implementation questions submitted to the Transition Implementation Group (TIG) on IFRS S1 and IFRS S2 that can be answered by applying the words in IFRS S1 and S2. This helps stakeholders access and apply the guidance more easily. 
On 19 June 2026 the IFRS Foundation launched the ISSB Training Partner Programme—a new initiative recognising organisations authorised to deliver official training based on IFRS Foundation-developed materials. Organisations keen to become an ISSB Training Partner can register their interest, while those seeking to participate in ISSB Disclosure Training can find a training partner.
In this latest Q2 2026 episode of the Implementation Insights podcast, ISSB Vice Chair Sue Lloyd leads a discussion on the latest resources available to support companies applying ISSB Standards.

ISSB Nature-Related Disclosures
Since the ISSB decided at its April 2026 meeting that requirements for nature-related disclosures will initially come in the form of an IFRS Practice Statement (PS) the Board has been making significant progress developing the PS and is on track for a public consultation via an exposure draft (ED), for the biodiversity COP in October 2026.The ISSB June Update includes a summary of the June 2026 ISSB meeting that focused on development of the PS. Until such time as the PS is finalized the TNFD recommendations will remain in force.
The ISSB’s existing Standards already require companies to provide material information about all sustainability-related risks and opportunities, including nature-related risks and opportunities that could reasonably be expected to affect a company’s prospects. The PS will complement IFRS S1 and IFRS S2. When a company needs to provide information about nature-related risks and opportunities in accordance with IFRS S1, the PS will explain how to do this. This approach, therefore, minimizes disruption, which is vital as companies and jurisdictions are in the process of implementing and adopting the ISSB Standards. Some are disappointed the ISSB has chosen a PS over a standard but in this LinkedIn post the ISSB Chair makes a robust defence of the Board’s decision. In any case the ED will also ask stakeholders whether a ISSB standard would be preferable, and the PS can be converted into an ISSB standard at a later stage.

Taskforce on Inequality and Social-Related Financial Disclosures (TISFD)
Just as the TCFD did for climate and the TNFD did for nature, so the TISFD is aiming to establish a standardised framework for reporting on companies' people-related impacts, dependencies, risks and opportunities. On 26 May 2026 the TISFD Framework (Beta Version 0.1) was released and is now open for public consultation until 31 July 2026. The final framework is expected to be published by the end of 2027, following a pilot programme and further consultations over the coming months. In this Corporate Disclosures article TISFD Executive Director explains that the core set of metrics that will anchor the framework is expected by the end of 2026.

Public Sector Standards
Earlier this year IPSASB released IPSASB SRS 1, Climate-related Disclosures, the first-ever public sector sustainability reporting standard earlier this year. In this Pulse LinkedIn article IFAC look at how the new IPSASB SRS 1 standard can help public institutions build trust and unlock climate finance. IPSASB has now turned its attention to the development of a public sector equivalent to the ISSB’s IFRS S1, a general sustainability-related disclosure standard that sets out general principles for sustainability disclosures in the public sector. IPSASB plans to issue a final standard before the end of 2026 as it proposed in its strategy and work plan consultation. At its meeting of 9-11 June 2026 IPSASB discussed who is responsible for reporting on public sector programmes and two of the standard's four disclosure pillars: strategy, and metrics & targets.

ISSB and GRI Statement
On 26 May 2026 to provide further clarity on how Global Reporting Initiative (GRI) and the IFRS Foundation are working together to enable a seamless, global and comprehensive sustainability-reporting system, the two organisations issued a statement. The statement clarifies how this system is being designed, and what purpose and audiences it serves. Read the statement here.

Science Based Targets Initiative (SBTi)
The SBTI recently released Version 2.0 of the Corporate Net-Zero Standard and have now published this accompanying guide.

7 July: Corporate Disclosures, ‘Climate Risk in Financial Reporting Forum 2026’, London
17-20 November: World Congress of Accountants (WCOA) 2026, Seoul, South Korea

4-5 December: Review of Accounting Studies & IASB Conference, University of British Columbia, Canada