European Commissioner for Financial Services and the Savings and Investments Union, Maria Luís Albuquerque, has formally mandated the European Financial Reporting Advisory Group (EFRAG) to simplify the first set of European Sustainability Reporting Standards (ESRS).
Additioanlly, addressing the EFRAG Sustainability Reporting Board (SRB) and the EFRAG Sustainability Reporting Technical Expert Group (SR TEG), Commissioner Albuquerque highlighted the urgent need for a fast-track revision process to ease reporting burdens for companies while maintaining robust disclosure frameworks.
The simplification mandate forms part of EFRAG’s role as technical advisor to the European Commission under the Corporate Sustainability Reporting Directive (CSRD). Albuquerque emphasised that the proposed changes are essential given the current geopolitical and economic context, and would enhance the usability of the ESRS for businesses navigating sustainability disclosure obligations.
The Commission has proposed that the number of mandatory data points in the ESRS be significantly reduced, focusing on eliminating less critical information, emphasising quantitative over narrative disclosures, and clarifying how the principle of materiality should be applied. The overarching aim is to ensure companies report only what is material to their operations, thereby streamlining the process without compromising on the quality or utility of the information provided.
EFRAG has been asked to deliver its technical advice by 31 October 2025, enabling the Commission to adopt the revised delegated act in time for application to 2027 financial year reports. An earlier adoption would be possible on a voluntary basis for the 2026 financial year.
Patrick de Cambourg, Chair of the EFRAG SRB, welcomed the Commissioner’s intervention and reaffirmed EFRAG’s commitment to the process. “EFRAG is fully aligned with the objective of simplifying and enhancing the first set of ESRS to ensure they remain practical, effective, and proportionate,” he said. “By building on the experience of first wave companies, we will simplify the standards to support companies in delivering meaningful and decision-useful sustainability information while maintaining the ambition of the CSRD.”
EFRAG also confirmed that it will draw on insights from the first cohort of companies preparing sustainability statements for the 2024 financial year to guide the simplification process, aiming to substantially reduce the reporting burden while preserving the integrity and ambition of the standards.
This latest development marks a significant step in the EU’s ongoing effort to balance regulatory expectations with practical implementation challenges, as sustainability reporting becomes an increasingly central aspect of corporate governance and financial disclosure.
