EFRAG provides its technical advice on draft simplified ESRS to the European Commission

EFRAG has submitted today its technical advice to the European Commission on the draft simplified European Sustainability Reporting Standards (ESRS). This marks a key milestone for the reduction of burden for companies in the context of the European Commission’s 2025 Omnibus initiative. This simplification fosters greater competitiveness by easing the regulatory landscape without compromising the fundamental objective of the Green Deal to advance sustainability in the European Union.

Building on the lessons learnt in 2024 by ‘wave 1’ reporters and on extensive multistakeholder evidence from the public consultation (more than 700 respondents), EFRAG delivers a set of draft simplified standards, introducing substantial flexibility, reliefs and phasing-in, as well as reducing the mandatory datapoints by 61%.

Practical considerations and proportionality mechanisms have been introduced in all reporting steps. The most challenging area, the materiality assessment, has been simplified, to avoid unnecessary administrative efforts, refocus on usefulness of the information, and help companies to disclose what really matters for users. Value chain requirements benefit now from flexibility in the use of estimates, reducing the pressure for direct data collection. Using the simplified ESRS companies will be able to better integrate sustainability in their communication to the market, beyond compliance.

Key Simplifications Implemented

  • Usefulness of information as a general filter and emphasis on fair presentation for more relevant and less compliance-oriented reporting;

  • Simplified materiality assessment: clearer guidance, reduced documentation, and better alignment with audit needs;

  • Elimination of the preference for direct data in the value chain, reducing the pressure for data collection;

  • Substantial reliefs, proportionality mechanisms and ad hoc phasing-in for challenging disclosures;

  • Principles-based standards for narrative disclosure particularly for policies, actions and targets, flexibility on how to present the information, greater focus on how sustainability matters are managed;

  • ESRS are now shorter, clearer, easier to understand and to implement;

  • 61% reduction of datapoints that are required if material, deletion of all voluntary disclosures;

  • Enhanced interoperability with the ISSB Standards: common disclosures preserved where possible, enhancement thanks to fair presentation, revised GHG boundary and provisions for anticipated financial effects. As some reliefs in ESRS go beyond those in the ISSB Standards, companies should pay attention when using them if they wish to comply with the ISSB Standards.

Next Steps

The European Commission will now prepare the Delegated Act revising the first set of ESRS based on EFRAG’s technical advice. EFRAG stands ready to support implementation of ESRS through guidance, explanations resulting from Q&A and educational materials. The ESRS Knowledge Hub, to be launched on 4 December 2025, is a pivotal tool to navigate the ESRS ecosystem.

Chiara Del Prete, EFRAG SR TEG Chair, stated:

“With the delivery of Amended ESRS we accomplish the mandate entrusted to EFRAG. Despite the challenging timeline, we could leverage on extensive input from stakeholders, including through field tests and dialogue with companies, auditors and users about lessons learnt in the first application of ESRS in 2024. My gratitude goes to EFRAG SR TEG and SRB, the stakeholders who contributed and to each and every member of the EFRAG Secretariat, without whom all of this would not have been possible. The standards are now ready for the next steps, their adoption. EFRAG will continue to support the European Commission, preparers, users and stakeholders in general in their implementation.”

Patrick de Cambourg, EFRAG SRB Chair, commented:

“This simplification reflects a crucial balance: supporting Europe’s competitiveness and reducing unnecessary burden, while preserving the EU’s leadership in sustainable finance and its commitment to the Green Deal. The Simplified ESRS provide a clearer, more proportionate framework that strengthens trust, transparency and our collective ability to address long-term sustainability challenges.”

Explore now the draft simplified ESRS and related publications.

Want to dive deeper? Join EFRAG’s online conference “EFRAG Unveils Draft Simplified ESRS: A European Milestone for Sustainability Reporting” on 4 December 2025. Register now (only on-line possible).

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