Streamlined European Sustainability Reporting Standards Suggested by EFRAG to Lessen Reporting Obligations
The European Financial Reporting Advisory Group (EFRAG) has proposed revised European Sustainability Reporting Standards (ESRS), aiming to reduce the reporting burden under the Corporate Sustainability Reporting Directive (CSRD). These revisions are designed to create a streamlined, clear, and proportionate sustainability reporting standard that aligns with CSRD goals [1].
The revised ESRS, the result of an extensive dialogue with stakeholders over the past few months, will see substantial simplifications. Key changes include the removal of all voluntary disclosures, shortening the standards by over 55%, and cutting mandatory reporting datapoints by 57%, leading to a total reduction of datapoints by 68% compared to the initial ESRS version [1].
The European Commission has also implemented a "quick fix" to ease the transition for companies already reporting. This includes allowing delays in reporting anticipated financial effects of sustainability risks and other specific disclosures through 2025 and 2026, thereby reducing transitional complexity [3][4].
EFRAG is conducting a cost-benefit analysis and targeted field tests, both of which are open to stakeholder input. The public consultation for these revisions will run from 31 July to 29 September 2025, encouraging participation from preparers, auditors, investors, civil society, and national authorities [1]. Outreach events are planned for September and October 2025 to support engagement.
The simplification of the ESRS is based on lessons learned in its application. Chiara Del Prete, Chair of the EFRAG Sustainability Reporting Technical Expert Group, emphasizes the collaborative nature of the revision process. The final technical advice submission to the European Commission is scheduled for 30 November 2025 [1][2].
Patrick de Cambourg, the Chair of the EFRAG Sustainability Reporting Board, aligns with the European Commission's strategic vision for sustainability reporting. The goal is to create a more focused, usable, and less burdensome sustainability reporting system in Europe, facilitating resilience, investment, and long-term value creation [1].
EFRAG encourages all stakeholders to participate in the public consultation and outreach events to help shape the future of sustainability reporting in Europe. The revised ESRS aims to provide a more ambitious yet manageable reporting framework, striking a balance between usability and ambition in the CSRD implementation.
Technology will play a significant role in facilitating the implementation of the revised European Sustainability Reporting Standards (ESRS), as it will likely be employed to streamline the reporting process and make it more accessible for businesses.
The revised ESRS, with its focus on corporate sustainability and finance, aims to create a more efficient and effective reporting system for businesses in Europe, ultimately contributing to improved business practices and long-term value creation.
