Reducing Datapoints in European Sustainability Reporting Standards: EFRAG Targets a Minimum Decrease by 50%
The European Financial Reporting Advisory Group (EFRAG) has taken a significant step towards simplifying and improving the European Sustainability Reporting Standards (ESRS) for Corporate Sustainability Reporting Directive (CSRD) reporting. The latest update, published in August 2025, presents a draft of the revised ESRS aimed at reducing complexity, enhancing usability, and streamlining the reporting process [1][2][3].
In line with the EU Omnibus Simplification Package introduced earlier this year, the revision focuses on a substantial reduction of data points, particularly in topical standards. This reduction is expected to simplify the double materiality assessment, improve readability, and clarify ESRS requirements [2][3]. While the exact reduction percentage is not explicitly stated, multiple sources indicate that the number of datapoints will be reduced by more than half [2][3].
Key elements of the revision include:
- Simplification and streamlining of the Double Materiality Assessment.
- Improved clarity and conciseness of sustainability statements.
- Substantial reduction in disclosure datapoints, especially in topical standards.
- Enhanced interoperability with other disclosure frameworks.
The Commission has mandated EFRAG to develop technical advice to revise the ESRS in line with the proposals' simplification objectives following the release of the Omnibus package [1]. In response, EFRAG has eliminated least relevant datapoints from the ESRS, focusing on those that are strictly necessary to meet disclosure objectives [1].
Moreover, EFRAG is simplifying the process of double materiality assessment in the ESRS, adopting a less granular approach to narrative disclosures, focusing on core information [1]. The group is also working to improve the readability, conciseness, and understandability of the ESRS, with the aim of enhancing interoperability between the ESRS and the IFRS sustainability standards [1].
The public consultation on the draft ESRS is open until September 29, 2025, followed by outreach events in late September and early October. EFRAG is expected to submit its final technical advice on the ESRS revisions to the European Commission by November 30, 2025 [1][2][3].
However, some stakeholders, such as WWF, have raised concerns that the draft ESRS weakens value chain disclosures, which could understate the environmental and nature-related impacts of companies, especially beyond their direct operations [5].
In summary, EFRAG's ongoing revision of the ESRS aims to reduce data points for CSRD reporting by more than half as part of a simplification package, with consultation ongoing until late September 2025 and final advice due by end of November 2025 [1][2][3]. The revision is part of the European Commission's Omnibus I package aimed at reducing the sustainability reporting and regulatory burden on companies.
References:
[1] European Financial Reporting Advisory Group (EFRAG). (2025). Draft ESRS status report. Retrieved from https://www.efrag.org/fileadmin/user_upload/ESRS_status_report_2025.pdf
[2] European Commission. (2025). Simplification of the European Sustainability Reporting Standards (ESRS). Retrieved from https://ec.europa.eu/info/strategy/priorities-2020-2024/europe-fit-digital-age/sustainable-growth/corporate-sustainability-reporting/simplification-european-sustainability-reporting-standards-esrs_en
[3] European Financial Reporting Advisory Group (EFRAG). (2025). EFRAG's work on the revision of the ESRS. Retrieved from https://www.efrag.org/efrag_s_work_on_the_revision_of_the_esrs
[4] European Commission. (2025). Letter from the Commission to EFRAG - Revision of the ESRS. Retrieved from https://ec.europa.eu/info/sites/info/files/business_economy_euro/banking_and_finance/documents/letter_from_the_commission_to_efrag_revision_of_the_esrs_en.pdf
[5] WWF. (2025). WWF comments on the EFRAG draft ESRS. Retrieved from https://wwf.panda.org/wwf_news/?239669/WWF-comments-on-the-EFRAG-draft-ESRS
The ongoing revisions to the European Sustainability Reporting Standards (ESRS) by the European Financial Reporting Advisory Group (EFRAG) aim to simplify and enhance the standards for corporate sustainability reporting, as part of the European Commission's Omnibus I package. This revision is expected to reduce data points by more than half, reducing the regulatory burden on businesses [1][2][3]. In response to this update, some stakeholders, such as WWF, have expressed concerns about potential weakening of value chain disclosures, which could understate the environmental and nature-related impacts of companies [5].
