ESRS 2025 Update: What the New EFRAG Proposals Mean for Sustainability Reporting

In June 2025, EFRAG unveiled proposals to simplify the European Sustainability Reporting Standards (ESRS), aiming to cut mandatory data points by 50%. For companies, especially SMEs and resource-constrained organizations, this marks a potential turning point in how sustainability reporting is done — less about ticking boxes, more about delivering real insights.  Big changes are coming to European sustainability reporting. Is your organization ready?

The Problem with the Current ESRS Framework

Since the adoption of ESRS in 2023, organizations have faced:

• Thousands of disclosure points
• Complex methodologies like double materiality
• High compliance burdens with limited strategic benefit

For many, especially small and mid-sized enterprises, these demands are difficult to meet — both in time and cost.

What’s Being Proposed: Key Simplifications

EFRAG’s new draft includes five core changes:

1. Streamlined Double Materiality Assessment

Moving away from a rigid checklist and toward a strategic, risk-focused approach.

2. Reduced Mandatory Data Points

Many disclosures would become voluntary guidance, with priority placed on decision-useful information.

3. More Accessible Report Structure

Clear executive summaries and annexes would help stakeholders better navigate reports.

4. Greater Global Alignment

Bringing ESRS closer to IFRS S1 and S2 to support consistency and reduce duplicate reporting for multinational companies.

5. “Relief Mechanisms” for Special Cases

Proposed flexibility for cases like mergers, or when value chain data is hard to obtain.

Timeline to Watch

• July 2025: EFRAG expected to adopt the revised drafts
• August – September 2025: Public consultation period
• October 2025: Final recommendation to the European Commission

If adopted, the new approach could shape ESG reporting across the EU for years to come.

What This Means for Your Organization

If these changes are approved, your organization can expect:

• Lower compliance burdens – especially beneficial for SMEs and those with limited ESG teams
• More strategic, focused disclosures that highlight real risks and impacts
• Easier integration with global ESG frameworks, enabling smoother investor communication
• A chance to reset your sustainability strategy with tools that are actionable and efficient

Turn Compliance into Competitive Advantage

These ESRS updates aren’t just technical tweaks. They’re a strategic opportunity. Organizations that act early can adapt, train teams, and lead the ESG transition — while others play catch-up.

That’s where CSE comes in.

With over 10,000 professionals trained in 90+ countries, the Centre for Sustainability and Excellence (CSE) helps organizations across industries stay ahead in the ESG landscape.

Your Next Step: Get ESG-Certified

Join our global community of ESG leaders with:

• Certified Sustainability (ESG) Practitioner Programs
• Expert-led workshops on CSRD, ESRS, and Materiality
• Flexible formats — online or in-person, built for busy professionals

Reserve your spot now and lead the way in the evolving world of sustainability reporting. Contact us at [email protected]  or visit www.cse-net.org for upcoming sessions.

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