Simplified European Sustainability Reporting Standards proposed in new publication by EFRAG

The European Financial Reporting Advisory Group (EFRAG) has recently launched a public consultation on a simplified set of the 12 ESRS Standards adopted by the European Commission (EC). This consultation, which is open until September 29, 2025, aims to gather feedback from stakeholders on the proposed changes.

The consultation was triggered by the European Commission's first Omnibus Simplification Package, announced in February 2025. The purpose of this package is to ease the reporting burden on European companies subject to the Corporate Sustainability Reporting Directive (CSRD).

EFRAG published the Exposure Drafts (EDs) of the simplified ESRS Set 1 on July 31, 2023. These EDs propose key simplifications that result in a 68% reduction of datapoints across all standards.

Feedback from respondents to the consultation will be considered to modify the EDs before EFRAG submits its technical advice to the EC by 30 November 2025. The EC will then adopt revised ESRSs, which may differ from EFRAG's technical advice, through a delegated act. However, the deadline for the EC to adopt the revised ESRSs is not specified in the text.

The ESRS Set 1, or ESRS, is a simplified set of the 12 ESRS Standards adopted by the European Commission (EC). The set, referred to as 'ESRS Set 1' or 'ESRS', proposes a significant reduction in the number of data points required for compliance, making it easier for companies to adhere to the standards.

EFRAG encourages all stakeholders, including companies, investors, and other interested parties, to participate in the consultation. The consultation provides a valuable opportunity for stakeholders to contribute to the development of the simplified ESRS standards and ensure that they meet the needs of all parties involved.

The public consultation on the Exposure Drafts of the ESRS is open until 29 September 2025. More information about the consultation and how to participate can be found on the EFRAG website.

Simplified European Sustainability Reporting Standards proposed in new publication by EFRAG