EFRAG proposes major ESRS simplifications to cut reporting burden

Technical advice to the European Committee suggests a 61% reduction in mandatory datapoints, with final revised ESRS expected by mid-2026.

On 3 December 2025, the European Financial Reporting Advisory Group (EFRAG) submitted its technical advice to the European Commission (EC) after addressing feedback from its public consultation on the Exposure Drafts, outreach events and field tests. 

The advice proposes a simplified set (the “revised ESRS”) of ESRS Set 1 adopted by the EC in July 2023 (comprising 12 ESRS and the related glossary). Key changes include a 61% reduction of mandatory datapoints. The revision was triggered by the EC’s first Omnibus Simplification Package, announced in February 2025, aimed at reducing the reporting burden on European undertakings subject to the Corporate Sustainability Reporting Directive (CSRD) and boosting EU (European Union) competitiveness.

EFRAG identified six levers for the revision:

1. Simplify the Double Materiality Assessment (DMA)
2. Better readability and conciseness of the sustainability statements
3. Eliminate overlaps between general disclosures and topical standards
4. Improve understandability, clarity and accessibility of the ESRS
5. Introduce several burden-reduction reliefs
6. Enhance interoperability with global reporting standards

EFRAG published complementary materials on 19 December 2025, including the Basis for Conclusions and a Cost-Benefit Analysis. The revised datapoints list (IG3) and the non-binding guidance are planned to be released in 2026.

The EC is reviewing the technical advice and plans to adopt the final revised ESRS — potentially with changes — via a Delegated Act by mid-2026. The final revised ESRS would apply from financial year  FY2027, with an option to early apply from FY2026.