ESRS Simplification: EFRAG Draft That Could Transform Reporting

A more focused standard, not a diluted one

EFRAG’s newly released draft of the Amended ESRS marks a potentially pivotal moment for sustainability reporting across the EU. Amid concerns over complexity and implementation timelines, these updates might bring clarity and usability to the ESRS. In our opinion, the EU is refining, not retreating from, its sustainability ambitions.

Making Sense of the Numbers

Much of the attention is focused on the claim that 66% of the datapoints will be eliminated. This figure, while technically correct, needs context.

The earlier ESRS documentation included more than 1,100 rows in guidance documents, but many of these were not quantitative datapoints. Instead, they were narrative prompts, yes/no flags, or structural cues to guide disclosure.

According to the current working draft, EFRAG would first remove all 277 “may disclose” items (i.e., voluntary datapoints), reducing the volume by roughly 25%. From there, the remaining reductions would largely be focused on eliminating duplication, clarifying expectations, and collapsing overlapping disclosure elements. Importantly, core metrics, such as GHG emissions or energy intensity, remain fully intact.

What Change Could This Bring to Sustainability Reporting?

1. A Leaner, More Practical Double Materiality Assessment
The double materiality methodology, central to CSRD compliance, might undergo significant simplification. Previously criticised for being overly procedural and rigid, the updated version shifts the emphasis from mapping processes to documenting outcomes. This reduces administrative burden while sharpening the strategic focus.

2. Streamlined Policies, Actions and Targets (PAT) Requirements
Previously, PAT disclosures were spread across ESRS 2 and topical standards. In the amended draft, these minimum disclosure requirements are renamed to General Disclosure Requirements, and duplication is reduced. This gives companies a clearer view of how to structure policy- and target-related content.

3. Use of Appendices for Granular Data
Detailed technical tables, such as EU Taxonomy alignment or site-level metrics, may now be placed in annexes rather than embedded in the core sustainability statement. This improves readability while preserving transparency.

4. Clearer Language and Guidance
The working draft introduces simpler language and improved structural flow. The original ESRS was often criticized for being overly complex and geared toward legal interpretation. This version leans toward usability for preparers and auditors alike.

EFRAG's Direction: Transparency Meets Pragmatism

While headlines suggest a possible rollback, the reality is more nuanced. What we’re seeing is not a weakening of Europe’s ESG regulation, but a refinement aimed at successful adoption.

Key disclosures — climate risk, supply chain resilience, and governance practices — remain untouched. Instead, the focus is on making the standards implementable across diverse industries and company sizes.

EFRAG also plans to introduce flexibility, such as reduced granularity in narrative disclosures, a clearer relationship between general and topical standards, and stronger alignment with international frameworks like ISSB.

What Could This Mean for You?

For companies reporting under CSRD, the amended ESRS draft offers a clearer path forward:

• Fewer duplicated disclosures and streamlined workflows
• Reduced time spent on administrative tasks, more focus on strategy
• Improved alignment between sustainability, risk, and finance teams
• Better consistency with global frameworks, supporting multinational reporting

But simplification does not mean optionality. The expectation remains: companies must engage with material sustainability risks and impacts, demonstrate how these are managed, and provide both the data and narrative to support their claims.

Final Thoughts: Simplification Without Compromise

If the current draft becomes an adopted framework, it could represent a more mature ESRS that promotes trust and enables strategic ESG integration. It moves reporting from a reactive obligation toward a strategic enabler.

At denxpert, we’re closely following every ESRS development to ensure our platform stays aligned with regulatory expectations. Our CSRD reporting software is continuously updated with the latest ESRS structure, and our expert team is ready to support you in interpreting and applying the new guidance.

Looking for tailored support in your ESRS implementation?
Explore our ESRS-ready reporting solution or contact our team for a demo.

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