EFRAG simplifies European Sustainability Reporting Standards (ESRS) in Response to Feedback
The European Financial Reporting Advisory Group (EFRAG) has finalized a simplification of the European Sustainability Reporting Standards (ESRS) following a request from the European Commission and extensive public consultation.This revision aims to reduce the reporting burden for companies while upholding the fundamental goals of the European Green Deal and the Corporate Sustainability Reporting Directive (CSRD).
Background and Mandate
In 2025, Maria Luís Albuquerque, the European Commissioner for Financial services, Financial Stability and the Capital Markets union, tasked EFRAG with streamlining the delegated act concerning the ESRS. This directive stemmed from initial feedback received during the first wave of CSRD implementation – often referred to as ‘Wave 1’ – and sought to address concerns regarding the complexity of the initial standards. The European Commission’s mandate specifically requested a technical advice on simplification, with a deadline of November 2025.
Simplification Process and Publication
EFRAG undertook a comprehensive simplification exercise, incorporating feedback gathered during a 60-day public consultation period held in the summer of 2025. The revised standards,known as the Amended ESRS,were published on December 3,2025.According to EFRAG, the amendments substantially reduce the administrative load associated with sustainability reporting without compromising the core objectives of the EU Green Deal.https://www.efrag.org/
Key objectives of the Simplification
The simplification efforts focused on making the ESRS more accessible and practical for companies, particularly smaller and medium-sized enterprises (SMEs). By reducing the complexity of the reporting requirements, the revised standards aim to encourage broader adoption and improve the quality of sustainability data disclosed by European companies. This, in turn, will contribute to greater transparency and accountability in the transition towards a more enduring economy.
Primary Topic: European Sustainability Reporting standards (ESRS) Simplification
Primary Keyword: ESRS simplification
Secondary Keywords: CSRD, EFRAG, sustainability reporting, European Green Deal, sustainability standards, corporate sustainability reporting, EU sustainability reporting, non-financial reporting.
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