The European Financial Reporting Advisory Group (EFRAG) has announced it is considering significant changes to the European Sustainability Reporting Standards (ESRS), which underpin the EU’s Corporate Sustainability Reporting Directive (CSRD). The proposed revisions would reduce the number of reported datapoints by around two-thirds and completely eliminate voluntary (“may”) disclosures.

These potential changes were outlined in EFRAG’s newly released “Amended ESRS Exposure Draft,” published ahead of a meeting to discuss the draft. While not yet representing EFRAG’s final position, the proposal goes beyond its earlier plan to cut over 50% of ESRS datapoints. This move aligns with the European Commission’s broader “Omnibus I package,” introduced in February, aimed at easing regulatory and reporting burdens. The package includes proposed amendments to major regulations such as the CSRD, the Corporate Sustainability Due Diligence Directive (CSDDD), the EU Taxonomy Regulation, and the Carbon Border Adjustment Mechanism (CBAM).

Following the Commission’s mandate, EFRAG has been tasked with developing technical advice to revise the ESRS, originally adopted in 2023. The goal of the revisions is to support more relevant, concise, and decision-useful sustainability statements, while significantly cutting mandatory reporting requirements.

Key areas of focus include simplifying the double materiality assessment—highlighted as a major challenge for companies—through clearer guidance and more practical expectations. The draft also suggests structural changes, such as introducing executive summaries and relegating detailed metrics to appendices for better readability.

Other proposed simplifications involve refining the link between Minimum Disclosure Requirements (MDRs) and topical standards, providing additional reporting reliefs, and improving compatibility with IFRS S1 and S2 standards.

EFRAG stated that it conducted a full review of mandatory disclosures, aiming to retain only those critical to the CSRD’s objectives. As part of this, it confirmed the removal of all voluntary (“may”) datapoints. Overall, the changes are expected to reduce ESRS datapoints by approximately 66%.

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