The European Financial Reporting Advisory Group (EFRAG) has revealed a major proposal to substantially reduce the number of datapoints within the European Sustainability Reporting Standards (ESRS). This initiative, part of a broader mandate from the European Commission, aims to significantly ease the reporting burden for companies under the Corporate Sustainability Reporting Directive (CSRD) while maintaining the integrity of core disclosure objectives. 

According to preliminary assessments in EFRAG’s working documents, the proposed revisions could lead to an overall reduction of approximately 66% in ESRS datapoints. This dramatic simplification involves: 

• Elimination of Voluntary Disclosures: EFRAG plans to remove practically all of the 277 existing voluntary (“may”) datapoints, with only a handful potentially retained on an exceptional basis for less mature disclosures. 

• Streamlining Mandatory Requirements: A substantial reduction of over 50% is expected for mandatory (“shall”) datapoints, achieved by deleting less relevant items, making some voluntary, or moving them to non-binding guidance. 

• Simplified Double Materiality Assessment (DMA): Recognizing the complexity of the DMA, EFRAG is working to remove ambiguities and simplify the process, ensuring it remains a meaningful filter for material information rather than a mere compliance exercise. 

• Enhanced Readability and Conciseness: Revisions also aim for more readable and concise sustainability statements, with options for executive summaries and the use of appendices for granular details. 

This significant simplification effort responds directly to extensive feedback from companies, auditors, and other stakeholders, who have highlighted the complexity and administrative burden of the current ESRS. The goal is to produce a revised set of ESRS that is more proportionate, relevant, and decision-useful for all users. 

EFRAG is expected to approve the Exposure Drafts for these amendments in mid-July, followed by a public consultation period from late July to end of September 2025. The final technical advice is scheduled for submission to the European Commission by November 30, 2025.