EFRAG Releases Simplified Drafts for Enhanced Standardized Reporting System

The European Commission is set to adopt revised ESRS (Environmental, Social, and Governance Reporting Standards) following a public consultation and technical advice from the European Financial Reporting Advisory Group (EFRAG). The revision, prompted by the European Commission's first Omnibus Simplification Package announced in February 2025, aims to reduce the reporting burden for European companies subject to the Corporate Sustainability Reporting Directive (CSRD).

On 31 July 2023, EFRAG published Exposure Drafts of a simplified set of the 12 ESRS Standards adopted by the European Commission (EC). These drafts propose key simplifications, resulting in a 68% reduction of datapoints across all standards. The Exposure Drafts are part of the ESRS Set 1 or the ESRS, which are the 12 ESRS Standards adopted by the EC in July 2023.

The public consultation on the Exposure Drafts by EFRAG is open until 29 September 2025. Feedback from respondents will be considered to modify the drafts before EFRAG submits its technical advice to the EC by 30 November 2025. The revised ESRSs may differ from the original Exposure Drafts due to feedback received during the public consultation.

Once the EC adopts the revised ESRSs through a delegated act, they will become the final version of the simplified ESRS Standards. The purpose of this process is to ease the reporting burden on European companies subject to the CSRD, as outlined in the European Commission's first Omnibus Simplification Package.

The revised ESRSs will not be adopted by EFRAG but by the European Commission. However, EFRAG plays a crucial role in the process, providing technical advice based on the feedback received during the public consultation. This advice will guide the European Commission in adopting the revised ESRSs.

In conclusion, the European Commission's move to revise the ESRS Standards is a significant step towards simplifying corporate sustainability reporting for European companies. The public consultation on the Exposure Drafts is an opportunity for stakeholders to contribute to this process, ensuring the revised standards meet the needs of businesses while maintaining transparency and accountability in sustainability reporting.