ESRS Simplified to Ease Reporting Burden Under CSRD

In a major move to reduce the regulatory burden on companies, the European Financial Reporting Advisory Group (EFRAG) released revised Exposure Drafts of the European Sustainability Reporting Standards (ESRS) on August 1, 2025. These new drafts significantly simplified sustainability disclosure requirements under the EU’s Corporate Sustainability Reporting Directive (CSRD), eliminating all voluntary disclosures and reducing total data points by 68%. The revision formed part of the European Commission’s Omnibus I proposal, aimed at scaling back the administrative load across major regulations, including CSRD, the Corporate Sustainability Due Diligence Directive (CSDDD), the EU Taxonomy, and CBAM. EFRAG’s updates followed extensive industry consultation, with feedback showing that companies found the original double materiality assessment (DMA) particularly burdensome. The revised ESRS introduced practical clarifications to the DMA, emphasized proportionality in evidence expectations, and focused on identifying only the most relevant sustainability topics. EFRAG also worked to improve the usability of sustainability statements, ensuring they were clearer, more concise, and better integrated with financial reporting. Notably, the updated standards enhanced interoperability with IFRS sustainability standards, adopting common language and incorporating similar relief mechanisms—such as exemptions for disclosures that require undue cost or effort. The updated ESRS reflected a more focused approach that retained ambition without overloading companies, aligning with the EU’s broader goal of fostering resilience and long-term value creation. A 60-day public consultation on the revised drafts was launched, with final recommendations expected by the end of November 2025.