Less is more: EFRAG plans significant reduction in ESRS data points
The European Financial Reporting Advisory Group (EFRAG) is currently examining a fundamental simplification of the European Sustainability Reporting Standards (ESRS). At the heart of the deliberations is a reduction in the data points to be reported by around66% - a step that could significantly streamline the sustainability reporting requirements for European companies.
Background and objectives
The revision of the ESRS was initiated by the European Commission as part of the so-called omnibus package. The aim is to simplify the reporting obligations for companies and reduce the administrative burden without jeopardizing the substantive ambitions of the Corporate Sustainability Reporting Directive (CSRD) and the European Green Deal.
Key changes at a glance
- Reduction of data points: The number of mandatory data points is to be reduced by around two thirds. This applies in particular to duplicate or less relevant information, which previously meant a great deal of effort for companies.
- Deletion of voluntary disclosures: All voluntary ("may disclose") data points will be deleted, so that in future only clearly defined, mandatory information will be required.
- Simplified materiality testing: The requirements for the so-called "double materiality" assessment are being simplified. In future, companies should be able to focus more on really important aspects and make the collection of evidence more efficient.
- Improved readability and structure: Sustainability reports are to be made clearer and easier to understand thanks to clearer guidelines and the option of executive summaries.
Timetable and next steps
The current draft of the revised ESRS is still in the coordination process. A public consultation is scheduled for the end of July to the end of September 2025 to give companies and stakeholders the opportunity to comment. The final technical recommendation to the European Commission should be available by November 30, 2025 at the latest.
Significance for companies
The planned changes are viewed positively by many companies and sustainability experts. The focus on material and comparable information should not only reduce the effort involved, but also improve the quality and informative value of sustainability reports. Small and medium-sized companies in particular will benefit from clearer, less resource-intensive reporting.
Conclusion
The reform of the ESRS initiated by EFRAG marks an important step towards more practical and efficient sustainability reporting in Europe. For CURENTIS and other companies, this means Less bureaucracy, more focus on the essentials - and a continued solid basis for credible sustainability communication.
About the author: Philipp Ehren has been a Senior Consultant at CURENTIS AG since 2021. He is our specialist for sustainable finance and has several years of experience in project work in risk management with a focus on IT applications. He is also a trained project manager.
