ESRS simplification exposure draft published
ESRS simplification exposure draft published
On 31 July 2025, EFRAG published ‘revised and simplified Exposure Drafts’ for European Sustainability Reporting Standards (ESRS). The Exposure Draft proposes significant changes to ESRS, including a significant reduction in disclosure requirements.
The first version of ESRS was published in 2023, and the first wave of mandatory reporters filed sustainability reports applying ESRS for 31 December 2024 year-ends. The proposed simplifications in the Exposure Draft are part of the European Commission’s Omnibus initiative with the aim of reducing the regulatory burden for companies. Refer to BDO’s ISR Bulletin 2025/03 for key information on the Omnibus.
In line with the EU Omnibus, The European Commission directed EFRAG to reducing the complexity of ESRS and improving their usability. Over the last several months, EFRAG has engaged with stakeholders to determine how to achieve this goal.
The Exposure Draft:
Publication consultation on the Exposure Draft will close on 29 September 2025. EFRAG invites comments from all stakeholders.
The proposed amendments to each ESRS standard and associated documents, including the public consultation survey may be accessed on EFRAG’s website.
The first version of ESRS was published in 2023, and the first wave of mandatory reporters filed sustainability reports applying ESRS for 31 December 2024 year-ends. The proposed simplifications in the Exposure Draft are part of the European Commission’s Omnibus initiative with the aim of reducing the regulatory burden for companies. Refer to BDO’s ISR Bulletin 2025/03 for key information on the Omnibus.
In line with the EU Omnibus, The European Commission directed EFRAG to reducing the complexity of ESRS and improving their usability. Over the last several months, EFRAG has engaged with stakeholders to determine how to achieve this goal.
The Exposure Draft:
- Streamlines the double materiality assessment;
- Reduces overlaps across standards;
- Clarifies language and structure;
- Removes all voluntary disclosures;
- Introduces new relief mechanisms (e.g. exemptions where reporting would cause undue cause or effort);
- Reduces mandatory datapoints by 57%; and
- Reduces total datapoints (mandatory and voluntary) by 68%.
Publication consultation on the Exposure Draft will close on 29 September 2025. EFRAG invites comments from all stakeholders.
The proposed amendments to each ESRS standard and associated documents, including the public consultation survey may be accessed on EFRAG’s website.