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The European Commission (EC) has requested the European Supervisory Authorities (ESAs) to deliver technical advice to inform the review of the Disclosures Delegated Act (DDA) under the EU Taxonomy Regulation.
Over the summer, the European Securities and Markets Authority (ESMA) ran a consultation on selected issues, including the OpEx KPI revision, group taxonomy reporting and climate change adaptation.
The Platform on Sustainable Finance (PSF) has published a brief setting out its views on the issues covered by the ESMA’s consultation. Its recommendations include:
The PSF intends to submit a full report on the review of the Taxonomy DDA in December 2026.
Accountancy Europe has responded to ESMA’s consultation, supporting:
On 16 September the EC’s President Ursula von der Leyen (VDL) delivered her annual State of the (European) Union speech before the European Parliament (EP)’s Plenary in Strasbourg. Rather than reviewing progress on existing priorities, VDL set out a vision for Europe’s future amid an increasingly volatile, fragmented and hostile global environment.
A central theme of the speech was building a more independent Europe in response to geopolitical tensions and major trends including AI and the climate crisis. VDL linked climate change to the EU’s own energy security, underlining the need to double down on clean energy, reduce dependence on fossil fuels, and accelerate Europe’s electrification.
As part of building the EU’s resilience agenda, the EC will present a Climate Resilience Framework on 28 October to strengthen preparedness for the growing impacts of climate change. The EC is also expected to set up a Climate Insurance Alliance to address the insurance gap for natural catastrophe losses across Europe.
The Committee of European Auditing Oversight Bodies (CEAOB) has delivered technical advice on the development of an EU limited assurance standard.
The advice responds to the EC’s request to identify EU-specific additions and potential carve-outs to the International Standard on Sustainability Assurance (ISSA) 5000 and will inform the EC’s work on an EU limited assurance standard to be adopted through a delegated act.
As a next step, the EC is expected to launch a public consultation based on this technical advice shortly.
The EP Economic and Monetary Affairs Committee (ECON) has adopted its position on the revision of the Sustainable Finance Disclosure Regulation (SFDR), with 37 votes in favour, 9 against and 4 abstentions. The ECON Committee:
The EP’s negotiating mandate is expected to be announced during the October I plenary session.
The EC has published a Q&A document on the Empowering Consumers for the Green Transition (ECGT) Directive.
The ECGT amends the Unfair Commercial Practices Directive (UCPD) and the Consumer Rights Directive (CRD). It aims to address vague or misleading environmental claims and sustainability labels, and to improve information on consumers’ rights.
The Q&A explains how the new rules should be applied while the EC updates its existing guidance on the UCPD and the CRD. The Q&A does not constitute a formal EC position or legally binding interpretation.
Explore the questions and answers
The EC’s updated set of FAQs clarify key requirements around traceability, geolocation and due diligence for commodities and products covered by the EU Deforestation Regulation (EUDR). They also provide guidance on operators’ responsibilities for information received from suppliers and the traceability of products throughout supply chains.
The EUDR will apply from 30 December 2026 to large and medium-sized operators and to micro and small operators already covered by the EU Timber Regulation. For most other micro and small operators, it will apply from 30 June 2027.
Explore the frequently asked questions
The revised ESRS and voluntary sustainability reporting standards have been published in the EU Official Journal. The EP and the Council had two months (until 3 September) to scrutinise the delegated acts with revised ESRS and voluntary sustainability reporting standards.
The revised ESRS are expected to enter into effect on 10 November and will be applicable for financial year starting on or after 1 January 2027, with early application for 2026 permitted. The revised ESRS aim to simplify sustainability reporting and reduce administrative burdens for companies in scope of the revised Corporate Sustainability Reporting Directive (CSRD).
EFRAG is seeking stakeholder feedback on its Exposure Draft of the European Sustainability Reporting Standards for Certain Non-EU Undertakings (ESRS-40a ED).
The draft applies to non-EU companies with significant activities in Europe that fall under Article 40a of the Accounting Directive. Throughout September, EFRAG held outreach sessions to present the draft, answer questions and gather feedback.
Stakeholders can respond to the public consultation survey by 31 October 2026.
EFRAG has published its 2026 draft list of ESRS datapoints, reflecting the revised ESRS adopted by the EC in July 2026.
The list includes usability improvements, like:
EFRAG is inviting stakeholders to review the methodology and report any significant flaws by 23 October 2026, with the final list expected by the end of 2026.
EFRAG is consulting on the draft XBRL taxonomy for the revised ESRS, with stakeholders invited to submit their feedback by 11 November 2026.
The draft XBRL taxonomy replaces the version released by EFRAG in August 2024 and reflects the revised ESRS adopted in July 2026. It provides the technical basis for making ESRS disclosures machine-readable and supports the digital reporting requirements under the CSRD.
Digital tagging of ESRS disclosures is not yet mandatory, as the relevant regulatory framework is still being developed by ESMA and the EC. EFRAG plans to submit the final XBRL taxonomy to ESMA and the EC by the end of 2026.
ESMA published its 2027 annual work programme. Next year’s priorities include sustainable finance as the EU moves towards a simpler sustainable finance rulebook.
ESMA will support national authorities and market participants in implementing changes to the SFDR, CSRD, ESRS, and EU Taxonomy following the Omnibus revisions.
Depending on the outcome of the SFDR negotiations, ESMA may prepare technical advice on new Level 2 measures and update existing Q&As. It will also review its guidelines on fund names using ESG or sustainability terms.
Other priorities include climate transition finance, ESG data and ratings, the EU Green Bond market and practical supervisory tools to support consistent implementation.
The International Ethics Standards Board for Accountants (IESBA) staff has issued a new set of Q&As to help assurance practitioners and other stakeholders navigate implementation of its ethics standards for sustainability assurance. Key topics covered include:
ESMA
Guidelines compliance table
Bruegel
Tax policy considerations for the circular economy
Harvard Law School Forum on Corporate Governance
What sustainability disclosures actually disclose
Taskforce on Net Zero Policy – United Nations
Resilience from definition to delivery: policy foundations for investing in resilience across the Rio Conventions
