The European Commission has directed the European Financial Reporting Advisory Group (EFRAG) to expedite revisions to the European Sustainability Reporting Standards (ESRS) under the Corporate Sustainability Reporting Directive (CSRD). The move aims to ease compliance burdens for businesses while maintaining alignment with the European Green Deal’s sustainability objectives.
The Commission has set a firm deadline of October 31, 2025, for EFRAG to submit its technical recommendations, paving the way for companies to adopt the streamlined standards as early as the 2026 financial year.
Key Proposed Changes:
Reduction in mandatory data points – The revised standards will emphasize quantitative over qualitative disclosures, eliminating less relevant requirements to simplify reporting obligations.
Enhanced clarity and consistency – Adjustments will improve alignment with other EU legislation and refine materiality assessment guidelines.
Stronger global interoperability – Efforts will focus on ensuring greater compatibility with international sustainability reporting frameworks, facilitating cross-border compliance.
Regulatory Perspective
Commissioner Maria Luis Albuquerque underscored the Commission’s commitment to balancing regulatory efficiency with sustainability goals.
“We aim to alleviate unnecessary administrative burdens while still meeting the core policy objectives of the European Green Deal,” she stated in an official letter to EFRAG.
EFRAG’s Response
EFRAG, which was initially mandated to develop the ESRS in 2020, has expressed readiness to undertake the revisions within the given timeline.
Patrick de Cambourg, Chair of EFRAG, reaffirmed the organization’s commitment:
“We will simplify the standards to support companies in delivering meaningful and decision-useful sustainability information while maintaining the ambition of the CSRD.”
Industry Implications
The accelerated revision process is expected to bring significant relief to companies navigating the complex sustainability reporting landscape. By prioritizing key disclosures and enhancing global alignment, the updated standards could reduce compliance costs while ensuring that sustainability reporting remains robust and decision-useful.
Businesses and stakeholders will be closely monitoring EFRAG’s progress, with further consultations anticipated in the coming months.
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