European commission tasks EFRAG with ESRS simplification under omnibus initiative
On 27 March, the European Commission (EC) formally mandated the European Financial Reporting Advisory Group (EFRAG) Sustainability Reporting Board (SRB) to lead the simplification of the European Sustainability Reporting Standards (ESRSs). This follows the EC’s 26 February publication of its “Omnibus” package — a suite of proposals aimed at reducing EU regulatory burdens, boosting competitiveness, and supporting investment.
The request, outlined in a letter from Commissioner Maria Luís Albuquerque to EFRAG leadership, calls for significant reductions in reporting burdens while preserving alignment with EU and global sustainability objectives.
The simplification effort focuses on reducing the number of mandatory data points, prioritising quantitative over narrative disclosures, clarifying application of the materiality principle, and enhancing interoperability with global standards. EFRAG is expected to deliver its technical advice by 31 October 2025, in time for potential adoption of revised standards for the 2027 reporting year — or optionally for 2026.
This mandate reflects clear recognition of the challenges faced by first-wave CSRD reporters and aims to make the ESRSs more practical and proportionate without undermining the quality or comparability of sustainability disclosures. Simplification can support clearer, more structured digital reporting and ease the path toward meaningful ESG data collection. However, streamlining must also ensure that vital sustainability insights are not lost in the process.
For more details, read the EC’s letter to EFRAG here and see more on the Omnibus package here.
