The European Parliament's Legal Affairs Committee held an exchange of views on 15 July 2026 with Commissioner Maria Luís Albuquerque on two delegated acts revising the European Sustainability Reporting Standards (ESRS) and introducing voluntary standards under the CSRD and Omnibus 1. Commissioner Albuquerque framed the revision as a simplification to balance competitiveness with sustainability, reducing data points, preserving double materiality, and adding alleviations for firms with 10 or fewer employees.
Axel Voss (EPP) welcomed the simplification and urged rapid approval for the current financial year. René Repasi (S&D) opposed the sustainability omnibus but valued the delegated acts for resisting pressure against double materiality and preserving Europe's non-financial reporting model. Sergey Lagodinsky (Greens/EFA) regretted weaker ambition on greenhouse gas emissions and deletion of secondary microplastics disclosure while welcoming retained safeguards. Dainius Žalimas (Renew) asked how the Commission would verify its estimate of 40% lower reporting costs and warned that voluntary standards could become de facto mandatory through contracts. Mario Mantovani (ECR) noted remaining practical gaps, especially prudential data demands on SMEs from banks.
Commissioner Albuquerque stressed the need for stability and legal certainty, cautioned against early review, and noted that costs can be reassessed only after full implementation. There was broad consensus on the need for clarity and proportionate treatment for SMEs, but divergences persisted on the extent of rollbacks and the risk of de facto compulsion via voluntary standards. The next step is for the Parliament to decide on approval of the delegated acts.
The debate exposed a moderate split between centre-right and centre-left groups. The EPP and ECR broadly supported the simplification as a competitiveness boost, while S&D and Greens defended the existing framework's ambition. Renew questioned the Commission's cost estimates and raised concerns about voluntary standards becoming mandatory through supply-chain contracts. The main trade-off is between reducing compliance costs for businesses (especially SMEs) and maintaining robust sustainability disclosure to protect investors and the environment. If voluntary standards become de facto mandatory, SMEs could face indirect pressure without the intended relief. The Parliament's approval decision will determine whether the delegated acts enter into force as planned.