EFRAG has published the revised ESRS exposure drafts and officially launched a 60-day public consultation (open until 24 September 2025). The drafts reflect a targeted effort to simplify and reduce the reporting burden, with a planned reduction of 68% of datapoints compared to the 2023 standards.
Key changes include simplifying the double materiality assessment, clarifying the relationship between Minimum Disclosure Requirements (MDRs) and topical standards, and improving the readability and accessibility of sustainability statements. The goal is to make reporting more proportionate while maintaining consistency with EU objectives.
Once the consultation is completed, the revised standards will be submitted to the Commission for adoption as a binding EU legal act.
We will integrate the new requirements into the EQS platform as soon as the legislative process has been finalized and all changes have been officially adopted.
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ECB President Christine Lagarde has warned that excessive scope reductions under the CSRD could undermine the credibility of Europe’s sustainable finance framework. Investors, she stressed, require comprehensive and comparable ESG data. A weakened scope could create fragmentation and reduce the usefulness of corporate sustainability information.
In parallel with the broader ESRS reform, the Commission adopted a Quick Fix in June that defers several voluntary disclosures from ESRS Set 1 for the 2025 reporting year. Companies must still apply the ESRS, but with reduced scope in the first year—especially for biodiversity, value chain, and governance disclosures.
The Quick Fix is a Delegated Regulation directly applicable across the EU—no national transposition is required—and will enter into force 20 days after publication in the Official Journal.
We will implement these adjustments in the EQS Sustainability Cockpit as soon as they take effect.
Read more – European Commission press release
198 organisations—including Unilever, Danone, IKEA (Ingka Group), Triodos Bank, Aviva Investors, and EQS—have signed a joint statement calling on the EU to uphold robust sustainability frameworks such as the CSRD, ESRS, EU Taxonomy, and CSDDD.
The statement stresses that legal certainty and consistent data are essential for investment and risk management, urging institutions not to weaken existing rules under pressure for deregulation.
Joint statement
The Commission has officially recommended the Voluntary Sustainability Reporting Standard for SMEs (VSME). This framework offers smaller companies a simplified path into sustainability reporting, focusing on proportionality while providing the ESG data expected by banks, investors, and customers.
It is intended as an entry-level standard: less complex than ESRS but aligned with EU objectives. SMEs can thus engage in sustainability reporting without the full compliance burden of large enterprises.
EQS already offers a VSME module in the Sustainability Cockpit, enabling SMEs to implement this standard efficiently. With the module, customers can also share their data publicly with third parties via the EQS Sustainability Profile.
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In recent trade discussions with the United States, the EU has committed to reducing reporting burdens under CSRD and CSDDD for non-EU companies. The pledge forms part of broader transatlantic trade negotiations and reflects international pressure to limit extraterritorial effects of EU sustainability rules.
While details remain unclear, the move has raised concerns about unequal treatment between EU-based and non-EU companies. It highlights the tension between easing burdens for international firms while maintaining a level playing field for European companies already preparing for compliance.
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According to Responsible Investor, the Commission is preparing a second Omnibus package focused on environmental regulation. Potential areas include the EU Deforestation Regulation (EUDR), the Green Claims Directive, the Industrial Emissions Directive (IED), and possibly the Forced Labour Regulation.
The Call for Evidence has already been published, inviting input from businesses, civil society, and experts. The fact that not-yet-implemented laws, like the Green Claims Directive, are under review shows how “simplification” is increasingly used as a political lever.
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The European Ombudswoman has launched an inquiry into the Commission’s Omnibus proposal, focusing on the lack of an impact assessment and the unusually short 24-hour inter-departmental consultation period (normally 10 days).
The Ombudswoman has requested clarification by 15 September 2025. This highlights the importance of transparent and legitimate rulemaking for regulations with significant corporate impact.
Press release
The EBA has launched a consultation on updated Pillar III ESG disclosure rules. Banks will have to publish more granular data on ESG risks, high-emission exposures, and climate-related physical risks.
For corporates, this means more ESG data will be requested by banks, directly linking reporting quality to financing. Robust ESG data management is thus becoming a prerequisite for access to credit. The consultation ran until 18 August 2025.
Consultation
In H2 2025, EQS will expand the Sustainability Cockpit with new modules focused on:
• CO₂ target-setting, scenario modelling and reduction planning
• Product Carbon Footprint (PCF)
• Climate Risk Analysis
These tools will help companies link regulatory compliance with strategic climate action, from supply chain to finance.
If you have questions or suggestions regarding these updates, please feel free to reach out to us directly.
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