EU CSRD: Commission mandates EFRAG to simplify ESRS

On 28 March 2025, Maria Luís Albuquerque, Commissioner for Financial Services and the Savings and Investments Union, sent EFRAG a letter outlining the European Commission's request for EFRAG to simplify the first set of European Sustainability Reporting Standards (ESRS) under the Corporate Sustainability Reporting Directive (CSRD) - as part of its Omnibus simplification plans. 

Types of changes to the ESRS

According to the letter, when simplifying the existing ESRS, EFRAG, should be guided by the explanatory memorandum accompanying the Omnibus proposals. 

In particular, the revision of the ESRS should:

• substantially reduce the number of mandatory ESRS datapoints by: (i) removing those deemed least important for general purpose sustainability reporting; (ii) prioritising quantitative datapoints over narrative text; and (iii) further distinguishing between mandatory and voluntary datapoints. This should be done without undermining interoperability with global reporting standards and without prejudice to the materiality assessment of each undertaking;
• clarify provisions that are deemed unclear;
• provide clearer instructions on how to apply the materiality principle, to ensure that undertakings only report material information and to reduce the risk of assurance service providers inadvertently encouraging; undertakings to report information that is not necessary or dedicate excessive resources to the materiality assessment process; 
• simplify the structure and presentation of the standards;
• further enhance the already high degree of interoperability with global sustainability reporting standards;
• make any other modifications that may be considered necessary, taking into account the experience of the first application of the ESRS.

Timing 

The Commission has asked EFRAG to start the process of simplifying the ESRS “as soon as possible” and to inform the Commission by 15 April 2025 about its internal timeline and work plan to deliver its advice. 

The Commission indicated in the first Omnibus package that it plans to amend the ESRS within 6 months after entry into force of the proposal for a Directive amending certain reporting and due diligence requirements in the CSRD and CSDDD. 

The Commission intends to adopt the revised ESRS “in time for those undertakings in the second wave that would be required to start reporting under the CSRD in 2028 for financial year 2027 to apply the revised standards.” 

In the letter, the Commission asked EFRAG to provide their technical advice by 31 October 2025. This “would allow the Commission to adopt the corresponding delegated act in time for companies to apply the revised standards for reporting covering financial year 2027, potentially with an option to apply the revised standards for reporting covering financial year 2026 if companies wish so.”

This presumably means that the Commission plans to adopt the revised ESRS before the end of 2026 and provide an option for companies reporting in the “first wave” of the CSRD to apply them when reporting in 2027.  

In its announcement regarding the new mandate, EFRAG confirmed their full commitment to this simplification exercise, leveraging experience from the first wave of companies issuing their sustainability statements for the 2024 financial year.  

Further reading

For more information on the ESRS, see our CSRD demystified materials. 

For further details of the first Omnibus package, see:

• EU: Commission publishes first Omnibus package with changes to CSRD and CSDDD
• Webinar recording on proposed changes to CSRD and CSDDD 
• Webinar recording: what the EU's first Omnibus package means for financial services firms