EFRAG Revises ESRS for CSRD

The European Financial Reporting Advisory Group (EFRAG) has published revised drafts of the European Sustainability Reporting Standards (ESRS), aiming to simplify corporate sustainability disclosures under the Corporate Sustainability Reporting Directive (CSRD).

These changes are designed to reduce reporting burdens while preserving transparency, materiality focus, and international compatibility.

What Are CSRD and ESRS?

• CSRD: The Corporate Sustainability Reporting Directive is an EU law requiring large companies and listed SMEs to publicly disclose ESG and sustainability data.
• ESRS: These are the mandatory reporting standards developed by EFRAG that detail how companies should meet CSRD obligations.

Key Goals of the Revised ESRS Drafts

The updated drafts aim to:

• Simplify requirements by eliminating excessive or highly detailed disclosures.
• Enhance clarity in reporting instructions and expected outcomes.
• Emphasize materiality, allowing businesses to report only on ESG issues that are truly relevant.
• Align internationally with frameworks like ISSB and GRI for global consistency.

Main Changes in the Revised Drafts

✅ Reduced Mandatory Disclosures: Fewer data points are now compulsory, easing compliance for many companies.
✅ Materiality-Based Reporting Strengthened: Firms can now focus reporting on sustainability issues that materially affect their operations or stakeholders.
✅ SME-Specific Adjustments: Tailored approaches have been introduced to make reporting more feasible for small and medium-sized enterprises.

Implications for Businesses

The revised ESRS drafts are expected to:

📉 Lower complexity and costs of reporting
🌍 Support alignment with international sustainability standards
📊 Improve ESG insights for investors and stakeholders
📝 Ensure more relevant and focused disclosures

What Companies Should Do Now?

• Review the revised ESRS drafts in detail
• Adjust ESG strategy and data collection processes to align with the simplified requirements
• Engage in the consultation process to help shape the final standards

Public Consultation & Timeline

🗓 Consultation Period: Now open for public feedback via EFRAG’s website
📅 Finalization: Drafts will be finalized in coordination with the CSRD implementation schedule

Companies impacted by CSRD should act now to assess the revisions and prepare for integration into 2026 sustainability reports and beyond.

Reference: Corporate Sustainability Reporting – European Commission