New EU Voluntary Sustainability Reporting Standard Adopted

On 3 July 2026, the European Commission adopted a new European standard for voluntary sustainability reporting under Commission Delegated Regulation C(2026) 5011. This regulation supplements the Accounting Directive with a new sustainability reporting standard intended for companies that fall outside the mandatory scope of the Corporate Sustainability Reporting Directive (CSRD). The new standard serves as a central connecting element in the reformed European sustainability reporting system and has two distinct functions. As a delegated regulation, it is a legally binding and directly applicable EU act. However, the decision to prepare a voluntary report in accordance with this standard remains a voluntary choice for individual companies. The standard applies to EU and non-EU companies seeking to demonstrate sustainability performance outside mandatory reporting frameworks.