CSRD/ESRS: EFRAG’s Progress Report Outlines Six Simplification Levers

On 20 June 2025, the European Financial Reporting Advisory Group (EFRAG) presented its first progress report on the revision of the European Sustainability Reporting Standards (ESRS).  

In addition to outlining the current status, the report sets out the next steps and identifies six levers aimed at achieving the simplification objectives. EFRAG notes that, as a result, more than 50% of the mandatory data points could be deleted, made voluntary, or incorporated into guidance documents. 

Background 

EFRAG was mandated by the European Commission on 27 March 2025 to simplify the ESRS by 31 October 2025.   

EFRAG’s work plan outlines a structured path to deliver its technical advice: 

April – Mid-May 2025

• Establish a top-down vision for simplification
• Gather stakeholder input and report analysis (Steps run in parallel under tight deadlines)

Mid-May – July 2025

• Draft and approve Exposure Drafts (EDs) amending the first set of ESRS  

August – September 2025

• Public consultation (30–45 days)
• Ten public outreach events (early September)

October 2025

• Finalise and deliver the technical advice to the European Commission.

Key Milestones Achieved

As of June 20, 2025, EFRAG reports that the simplification of the ESRS is moving forward as planned:   

• Strategic direction approved
  The overall plan for simplification (Step 1) was officially adopted on 7 May. It was based on input from interviews, outreach, and internal surveys. The proposed changes were widely supported and later confirmed by stakeholder feedback, which is now being used in the drafting phase.  

• Stakeholder input collected
  Between April and May 2025, EFRAG gathered over 820 responses, conducted 41 interviews, and held 22 workshops with stakeholders across Europe, collecting more than 16,000 comments on the ESRS. This intensive outreach, supported by benchmarking and expert contributions, provided valuable insights into key challenges and suggestions for simplification. The input is now being analysed and will also feed into a short public consultation planned for this summer.

• Drafting underway
  EFRAG began drafting the revised ESRS in early May, based on the strategic direction from Step 1. Two internal drafts have been prepared – one without metrics (early June) and a more complete version including metrics (mid-June), which is now under review by EFRAG’s expert groups. Five dedicated sub-groups are leading the work, aiming to finalise the Exposure Drafts by the end of July, with regular feedback and alignment from EFRAG’s technical and governance bodies.

• Due Process Update
  EFRAG has adjusted its usual procedures to meet the EC’s October 31 deadline, including a shorter public consultation period (40/45 days) and streamlined internal coordination. While some stakeholders have raised concerns about the limited consultation window, EFRAG is open to extending it if the EC agrees to shift the deadline.

Proposal for Next Steps: Six Simplification Levers

As highlighted by the European Commission, easing the reporting burden goes beyond cutting data points. EFRAG is approaching six strategic levers to reduce complexity and make sustainability reporting more concise, relevant, and user-friendly, without compromising the core goals of the CSRD: 

1. Double Materiality Assessment (DMA)
   EFRAG is significantly simplifying the Double Materiality Assessment (DMA), which has so far been seen as overly complex and burdensome. The revised approach places greater emphasis on relevance and strategic alignment, starting from a top-down analysis of the business model to identify the most obvious material topics. New guidance will reduce unnecessary granularity, allowing companies to report only on sub-topics that are clearly material rather than entire topical standards. EFRAG is also clarifying the criteria for materiality, streamlining evidence expectations, and addressing unresolved questions such as how mitigation efforts affect materiality and whether non-material topics can be included.  

2. Making Sustainability Reports Clearer and More Focused
   Many sustainability reports under the ESRS have been seen as too long, too detailed, and hard to read, which makes it difficult for companies to clearly explain their sustainability story. To fix this, EFRAG is introducing more flexibility, like allowing an executive summary, putting detailed data in appendices, and making it clearer what’s mandatory and what’s optional. 

3. Streamlining Minimum Disclosure Requirements (MDR)
   The current structure of ESRS, with overlapping requirements between general and topic-specific disclosures on Policies, Actions, and Targets (PATs), has caused confusion and led to overly detailed and repetitive reporting. To reduce complexity, EFRAG is reducing mandatory datapoints in the topical standards, keeping only the essential ones, and clarifying that PATs only need to be reported if they exist and are linked to material topics.

4. Improving Clarity & Accessibility of the Standards
   EFRAG is making changes to improve the clarity and structure of the ESRS, especially by clearly separating mandatory from non-mandatory content. The often misunderstood category of voluntary disclosures will be significantly reduced, as it was seen by many as a checklist rather than guidance. 

5. Additional Reliefs to Ease Reporting
   EFRAG is proposing a set of practical reliefs to reduce the reporting workload for companies without losing sight of the goals of the CSRD. These include clearer rules for reporting after acquisitions or disposals, easier use of estimates when reliable data is missing, and the ability to exclude non-material parts of the business from detailed reporting. Companies will also have more flexibility when reporting on value chain data, financial effects, and commercially sensitive information. Special attention is being given to financial institutions, with plans to include clearer guidance for their specific needs. 
6. Enhanced Interoperability
   EFRAG is working to make the ESRS more compatible with international standards like the ISSB’s IFRS S1 and S2, to avoid confusion and duplication for companies reporting under multiple frameworks. This includes using the same wording where possible and aligning key concepts (like the reporting boundary for GHG emissions) with the Greenhouse Gas Protocol and IFRS standards. As part of this effort, EFRAG is also reducing the number of mandatory data points by 50%. 

Timeline

EFRAG is now finalising a revised draft of the amended ESRS (Version 2) based on expert feedback, with a key review meeting set for 2 July. 

• 2 July 2025: EFRAG SRB meeting to review revised draft (Version 2)

• Mid–July 2025: Planned approval of Exposure Draft

• 25 July 2025: Backup date for additional approval session (if needed)

• Last week of July 2025: Launch of public consultation

• October 2025: Interim cost-benefit analysis report (based on Exposure Draft)

• December 2025: Final cost-benefit analysis (based on revised ESRS)

cleversoft Services  

As your trusted RegTech partner, cleversoft offers highly efficient reporting solutions for all three sustainability regulations: CSRD, CSDDD, and the EU Taxonomy (Article 8).  

A key benefit: Through our cleversoft Compliance Commitment, you will receive all regulatory updates as soon as they are officially published by the relevant authorities.
Regarding the topic of this blog post, this implies: We will proactively update the cleversoft CSRD Reporting Service to reflect the proposed ESRS simplifications. 

If you have any questions or require support in interpreting or implementing the new requirements, our team will be happy to assist you. Simply get in touch via our contact form.