The European Commission has tasked EFRAG with revising the European Sustainability Reporting Standards (ESRS) to reduce complexity and reporting burdens while maintaining transparency and comparability. The simplification is the consequence of the CSRD Omnibus package, ensuring sustainability reporting remains effective, proportionate, and accessible to companies of all sizes.

Key elements
 

• Streamlined structure: Clarification and simplification of cross-cutting and topical standards to improve coherence and usability.
• Datapoint reduction: Fewer mandatory datapoints, focusing on disclosures most relevant to users and investors.
• Materiality guidance: Refinement of the double materiality principle to ensure reporting reflects company-specific impacts and risks.
• Enhanced readability: Reorganisation of sustainability statements to align more closely with general corporate reporting.
• Interoperability: Improved alignment with other international frameworks to reduce duplication and facilitate global comparability.

These revisions aim to preserve the integrity of the ESRS while enhancing practicality for preparers. Updates and official documentation are available via EFRAG’s ESRS simplification project page.