European Financial Reporting Advisory Group submits technical advice to European Commission on simplified ESRS cutting mandatory datapoints by 61%

The European Financial Reporting Advisory Group (EFRAG) has submitted technical advice to the European Commission on draft simplified European Sustainability Reporting Standards (ESRS), aimed at reducing companies’ reporting burden under the European Commission’s 2025 Omnibus initiative. The draft package introduces added flexibility, reliefs and phasing-in, and reduces mandatory datapoints (where material) by 61%, alongside the deletion of all voluntary disclosures. The proposed simplifications draw on lessons from 2024 ‘wave 1’ reporters and evidence from a public consultation with more than 700 respondents. Changes include a stronger usefulness filter and emphasis on fair presentation, a streamlined materiality assessment with clearer guidance and reduced documentation aligned with audit needs, and more flexible value chain disclosures through greater use of estimates and removal of the preference for direct data collection. Narrative disclosures for policies, actions and targets shift further towards principles-based requirements and greater flexibility in presentation, and interoperability with International Sustainability Standards Board (ISSB) Standards is addressed by preserving common disclosures where possible, alongside revisions including greenhouse gas boundary changes and provisions on anticipated financial effects. The European Commission will prepare a Delegated Act revising the first set of ESRS based on EFRAG’s advice. EFRAG plans implementation support through guidance, Q&A-based explanations and educational materials, including the ESRS Knowledge Hub scheduled to launch on 4 December 2025.