EFRAG has published a progress report detailing its efforts to simplify the ESRS responding to a formal request from the European Commission.
The report, approved by the EFRAG Sustainability Reporting Board (SRB) on 19 June 2025, aims to demonstrate tangible progress on reducing the reporting burden for companies, with the ultimate goal of cutting the number of mandatory datapoints by more than 50%.
The update was issued in response to a letter from Commissioner Albuquerque dated 5 May 2025, which asked for a written explanation of how ESRS reforms would reduce complexity. EFRAG’s response outlines six strategic “levers” that form the core of its simplification efforts.
These include simplifying the Double Materiality Assessment (lever 1), enhancing the readability and integration of sustainability statements into broader corporate reporting (lever 2), and significantly adjusting the relationship between Minimum Disclosure Requirements (MDR) and topical specifications (lever 3). Other initiatives involve improving the clarity and accessibility of the standards (lever 4), introducing additional burden-reduction measures (lever 5), and boosting interoperability with other reporting frameworks (lever 6).
In a cover letter accompanying the report, EFRAG stressed that these actions are designed to maintain the integrity of sustainability disclosures while reducing the administrative burden on companies. The proposals summarised in the report are still under discussion, with final decisions expected by the end of July.
EFRAG SRB chair Patrick de Cambourg said, “This Progress Report reflects our commitment to ensuring that the ESRS remain both effective and proportionate. By responding proactively to the European Commission’s request, we aim to support companies in meeting sustainability reporting requirements without unnecessary complexity.”
EFRAG SR TEG chair Chiara del Prete added, “We are very grateful to the companies that completed their first-time ESRS sustainability statements for their high-level mobilisation. Thanks to the extensive dialogue we have had over the past two months with them, as well as with auditors and other involved stakeholders, we now have extensive evidence on what needs to be simplified. We are all working hard to prepare the best possible exposure draft within the available timeframe.”
The progress report also provides an early look at the practical outcomes of extensive engagement with companies, auditors, and stakeholders since the ESRS implementation began. It suggests that while there is broad support for the ESRS framework, further refinements are crucial to ensure usability and compliance.
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