EFRAG Targets 50% Cut in Reporting Requirements
Overview
The European Financial Reporting Advisory Group (EFRAG) is taking bold steps to simplify sustainability reporting by aiming to cut required datapoints in the European Sustainability Reporting Standards (ESRS) by over 50%. This move is part of a broader EU initiative to ease compliance burdens while maintaining the integrity of corporate sustainability disclosures.
Image by Christian Lue on Unsplash
A Push for Simplicity
EFRAG’s latest draft status report outlines a significant overhaul of the ESRS, the framework guiding sustainability disclosures under the EU’s Corporate Sustainability Reporting Directive (CSRD). The goal? To reduce the number of required datapoints by at least half. This initiative is a response to growing concerns from companies about the complexity and volume of current reporting obligations.
The organization emphasized that despite the reduction, the core objectives of the CSRD—transparency, accountability, and high-quality sustainability data—will remain intact.
The Omnibus Catalyst
This simplification effort follows the European Commission’s February 2025 “Omnibus I” package, which proposed sweeping changes to sustainability regulations, including the CSRD, the Corporate Sustainability Due Diligence Directive (CSDDD), and others. EFRAG was tasked with revising the ESRS to align with these proposals, with a tight deadline of October 31, 2025.
Evidence-Based Revisions
EFRAG’s approach is grounded in feedback from companies already implementing the ESRS and from investors who rely on sustainability data. The findings revealed that many narrative datapoints were overly granular and could be either removed or shifted to non-binding guidance without compromising data quality.
Key areas under review include:
Narrative disclosures on policies, actions, and targets
Double materiality assessments
Clarity and readability of sustainability statements
What’s Next?
EFRAG is focusing on eliminating datapoints that are not essential to meeting disclosure objectives. The aim is to make sustainability reporting more manageable, especially for smaller companies, while still delivering meaningful insights to stakeholders.
This initiative marks a pivotal moment in the evolution of ESG reporting in Europe—one that balances regulatory ambition with practical implementation.
