Sustainability Update: Draft Simplified ESRS Published

(04.12.25)

EFRAG has officially released the Draft Simplified ESRS (3 December), a major step towards clearer CSRD reporting. This is highly relevant for our customers as they prepare their next reporting cycles.

Here’s a quick snapshot:

1. Key Updates in the Simplified ESRS (For more info: EFRAG's factsheet)

• Focus on what matters: Decision-useful reporting, not just compliance.
• Simpler materiality: Clearer guidance, less documentation, better assurance alignment.
• Easier value-chain reporting: Less pressure on direct data.
• Reliefs & transitions: Proportionality mechanisms and flexible timing for difficult disclosures.
• Flexible narrative reporting: Policies, actions, and targets can be presented more freely.
• Shorter, clearer standards: Easier to read, interpret, and implement.
• Fewer datapoints: 61% reduction if material; all voluntary disclosures removed.
• Better ISSB alignment: Shared disclosures, updated GHG boundary, and financial effects provisions.

2. EFRAG Knowledge Hub

EFRAG has launched the new ESRS Knowledge Hub. It currently offers ESRS Set 1 (2023), the VSME Standard, interactive navigation, and guidance materials. Content for the Simplified ESRS will be added gradually and is expected to become a key reference for customers preparing their reporting.

3. Political and Regulatory Timeline

• EFRAG will submit the Simplified ESRS as technical advice to the European Commission.
• The Commission plans to adopt the revised ESRS Set 1 via Delegated Act in mid-2026.
• Expected application: FYs starting 1 January 2027, with optional early adoption.
• Updated IG3 guidance (Excel mapping templates) is expected in Q1 2026.

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