EFRAG submits technical advice on draft simplified ESRS to the European Commission
EFRAG submits technical advice on draft simplified ESRS to the European Commission
On 3 December 2025, EFRAG has delivered its final technical advice to the European Commission (EC) on the 12 draft simplified European Sustainability Reporting Standards (ESRS). The revised standards may be accessed here. EFRAG has also prepared a series of ‘factsheets’ which summarise the changes by each ESRS.
Key simplifications implemented as highlighted by EFRAG
Next steps
The EC will consider EFRAG’s technical advice when preparing the Delegated Act to revise the first set of ESRS.
The EC plans to adopt the necessary delegated act at the latest six months after the entry into force of the Omnibus I proposals, targeting application for financial year on or after 1 January 2027 (with possible earlier voluntary application for 2026). Until the revised ESRS become effective, entities in the first application group (‘wave one’ entities) are required to continue to comply with the original ESRS Set 1 standards adopted in 2023.
EFRAG expressed readiness to support implementation of the revised ESRS through guidance, Q&A and educational materials, with the ESRS Knowledge Hub launching on 4 December 2025 to help users navigate the new standards.
Key simplifications implemented as highlighted by EFRAG
- Usefulness of information is now a general filter, with a greater emphasis on fair presentation for more relevant and less compliance-driven reporting.
- Materiality assessment has been simplified: clearer guidance, reduced documentation, and improved alignment with audit needs.
- The preference for direct data in the value chain has been eliminated, easing data collection requirements.
- Substantial reliefs, proportionality mechanisms, and phased implementation for challenging disclosures.
- Principles-based standards for narrative disclosures, especially for policies, actions, and targets, with flexibility in presentation and a focus on how sustainability matters are managed.
- The revised ESRS are designed to be shorter, clearer, and easier to understand and implement.
- A 61% reduction in mandatory datapoints (if material), and removal of all voluntary disclosures.
- Enhanced interoperability with the International Sustainability Standards Board (ISSB) standards: common disclosures retained where possible, with improvements in fair presentation, greenhouse gas (GHG) boundary and anticipated financial effects. Some ESRS reliefs go beyond those in ISSB standards, so companies should exercise caution if seeking ISSB compliance.
Next steps
The EC will consider EFRAG’s technical advice when preparing the Delegated Act to revise the first set of ESRS.
The EC plans to adopt the necessary delegated act at the latest six months after the entry into force of the Omnibus I proposals, targeting application for financial year on or after 1 January 2027 (with possible earlier voluntary application for 2026). Until the revised ESRS become effective, entities in the first application group (‘wave one’ entities) are required to continue to comply with the original ESRS Set 1 standards adopted in 2023.
EFRAG expressed readiness to support implementation of the revised ESRS through guidance, Q&A and educational materials, with the ESRS Knowledge Hub launching on 4 December 2025 to help users navigate the new standards.