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On May 6, 2026, the European Commission launched a one-month public consultation on draft final versions of revised European Sustainability Reporting Standards (ESRS) and a voluntary reporting standard for smaller companies. The consultation aims to gather stakeholder feedback on standards designed to reduce administrative burden for European Union businesses while maintaining sustainability disclosure quality. The revised ESRS reduce mandatory datapoints by over 60 percent and total datapoints by over 70 percent, with reporting costs per company expected to decrease by more than 30 percent. The standards are shorter and clearer than previous versions, introduce new flexibilities for companies, and simplify the materiality assessment process used to determine reporting requirements. These revisions build on the Omnibus I simplification package, which streamlines sustainability reporting across the EU and reduces the number of companies subject to the Corporate Sustainability Reporting Directive (CSRD). The draft voluntary standard supports sustainability reporting by companies not subject to mandatory CSRD requirements. It introduces a "value chain cap" preventing CSRD in-scope companies from requiring value-chain partners with 1,000 employees or fewer to provide information beyond what is specified in the voluntary standard. The revised ESRS largely build on technical advice from the European Financial Reporting Advisory Groups (EFRAG), the Commission's independent multi-stakeholder advisory body on reporting standards. The public consultation closes on June 3, 2026. Following the consultation period, the Commission will adopt the two delegated acts and transmit them to the European Parliament and Council for scrutiny under the no-objection procedure, which allows two months for review, extendable by a further two months at either institution's request, before the standards enter into force. Stakeholders can submit feedback via the Commission's public consultation portal.