On September 10, 2026, the UN Global Compact Network Italy organized the webinar "New ESRS: Implications for Companies," focusing on the updates introduced by the European Commission’s revision of the European Sustainability Reporting Standards (ESRS) last July. Held in collaboration with EFRAG (European Financial Reporting Advisory Group), the event provided Network member companies with an up-to-date overview of the changes introduced by the "Omnibus I" package and the reporting standards revision process.
This initiative is part of an ongoing dialogue between the UN Global Compact Network Italy, European institutions, and EFRAG. It follows a roundtable held in Brussels in June, which previewed the progress of the ESRS revision and highlighted the strengthened role of materiality as a filter for determining which information must be reported.
Fewer companies involved, more breathing room for all
The revision stems from a clear need: to make sustainability reporting more proportionate—without compromising the rigor and quality of the data collected—while simultaneously ensuring the competitiveness of European companies, particularly in a global context where businesses face multiple reporting regimes. The Omnibus I package significantly narrows the scope of the CSRD; it will now apply only to companies with more than 1,000 employees and a turnover exceeding €450 million—an estimated 85% reduction in the number of affected companies. New exemptions have also been introduced for subsidiaries and for financial holding companies with independent operations.
Less data, more substance
Chiara Del Prete, Chair of EFRAG’s Sustainability Reporting Technical Expert Group (TEG) and a guest speaker at the webinar, reiterated that the core of the reform is the simplification of the standards. In particular, the total number of data points is reduced by 71%, with voluntary data points eliminated entirely. The goal is to create reporting that is more readable, integrated into corporate reporting, and genuinely useful to the reader. Materiality serves as the overarching filter for information, employing a more principles-based approach and allowing for greater flexibility in data disaggregation.
A standard tailored even for those not subject to mandatory requirements
Companies not subject to the CSRD but involved in value chains—often SMEs—are not left without tools: the new Voluntary Standard (VS)—which extends its scope to companies with up to 1,000 employees and introduces exemptions for micro-enterprises—aims to become the shared reference point for businesses, banks, and investors.
An international perspective
Despite the reduction in data points, EFRAG confirms that alignment with global standards remains a cornerstone of the revision: the scope of GHG emissions is now fully consistent with the GHG Protocol (the world’s most widely used standard for measuring corporate carbon footprints), the structure closely mirrors the IFRS Sustainability Standards (the benchmark accounting standards for international investors), and explicit provision is made for referencing SASB standards, which are designed to make sustainability data comparable across companies in the same sector. In other words, an Italian company will be able to continue speaking the same language as global financial markets without having to produce duplicate or disconnected reports.
This reform is therefore designed to make sustainability reporting more streamlined and accessible, without compromising its primary purpose: providing markets and stakeholders with reliable information on the transition journey of European companies.
For more information, listen to the webinar.