Efforts to streamline corporate sustainability reporting in the EU have taken a decisive turn. The European Financial Reporting Advisory Group (EFRAG) has announced plans to reduce the number of data points required under the ESRS standards (European Sustainability Reporting Standards) by over 50 percent.
This shift forms part of the EU’s broader Omnibus initiative to ease compliance pressure on businesses while safeguarding the core principles of the Corporate Sustainability Reporting Directive (CSRD). While the goal is to make reporting more manageable, the implications for leadership and long-term ESG accountability are complex.
ESRS standards under review
The EFRAG’s draft status report outlines a forthcoming revision of the ESRS standards, developed in response to the European Commission’s February 2025 Omnibus I package. The proposed simplification aims to address feedback from preparers and users of sustainability disclosures, many of whom expressed concerns about the overwhelming volume and granularity of current requirements.
As part of the simplification plan, EFRAG is looking to:
- Eliminate narrative disclosures that are too detailed or duplicative
- Relocate non-essential data points to non-binding guidance
- Focus reporting on ‘core’ ESG data that aligns with CSRD objectives
EFRAG has maintained that despite these reductions, the revised ESRS standards will continue to support high-quality, decision-useful sustainability information.
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Key simplification levers
Beyond reducing the number of data points, the revision aims to improve how organisations apply the ESRS standards in practice. Focus areas include:
- Simplifying double materiality assessments
- Enhancing the clarity and readability of sustainability statements
- Aligning the ESRS standards more closely with global frameworks such as the International Financial Reporting Standards (IFRS).
Despite the urgency of simplification, EFRAG has acknowledged the challenges of revising the ESRS standards on a tight timeline. With a deadline set for October 31st 2025, the group has signalled its willingness to extend consultation periods if necessary to ensure quality. Drafts of the revised ESRS standards are expected in July, with stakeholder feedback open through August and September.
Final thoughts
The proposed 50 percent reduction in data points reflects a shift towards simplification, recognising feedback from businesses grappling with complexity. However, this streamlining should be seen not as a retreat from ESG responsibility, but as an evolution in how material information is prioritised and communicated.
Organisations are still expected to demonstrate meaningful sustainability performance, even as reporting frameworks become more focused. The emphasis is shifting from volume to value, ensuring that disclosures inform decisions, reflect strategy, and support accountability across operations and value chains.
For business leaders, this moment calls for foresight. Understanding the revised ESRS standards, aligning internal capabilities, and embedding ESG literacy across functions are now critical to staying ahead. As regulatory clarity emerges, the competitive edge will belong to those already prepared. Our CSRD training provides the practical knowledge and tools your team needs to interpret ESRS standards effectively and embed them into a value-led reporting strategy.
