EFRAG Unveils Streamlined ESRS Drafts for Public Review
Overview
EFRAG (European Financial Reporting Advisory Group) has released revised Exposure Drafts of the European Sustainability Reporting Standards (ESRS), launching a 60-day public consultation. These standards aim to reduce complexity while maintaining alignment with the European Green Deal and the Corporate Sustainability Reporting Directive (CSRD).
Major Simplifications
EFRAG’s revisions are a direct response to feedback from over 800 stakeholders, including companies already reporting under CSRD and those preparing to do so. The goal is to make sustainability reporting more manageable and meaningful.
The Changes:
57% reduction in mandatory data points
68% reduction in total disclosures
All voluntary disclosures removed
Over 55% shorter standards overall
These changes are designed to cut through the complexity and make ESRS more accessible, especially for companies newly entering the CSRD scope.
Strategic Focus Areas
EFRAG applied both top-down and bottom-up simplification strategies. Key improvements include:
Streamlining the double materiality assessment
Reducing overlaps across standards
Clarifying language and structure
Introducing relief mechanisms for undue cost or effort
The revisions also emphasize proportionality, encouraging companies to focus on the most obvious sustainability topics and apply reasonable levels of evidence.
Public Consultation Now Open
The consultation period runs from July 31st to September 29th 2025. EFRAG invites input from:
Corporate preparers
Auditors
Civil society
Investors
National authorities
To foster dialogue, EFRAG will host outreach events throughout September and October. Final technical advice is expected by November 30th 2025, alongside a cost-benefit analysis and field tests.