Highlights
Companies now have greater clarity on how they would report under simplified European Sustainability Reporting Standards (ESRS), after EFRAG1 submitted its technical advice to the European Commission (the Commission).
Simplifying ESRS is part of the Omnibus initiative to reduce sustainability reporting requirements for preparers while maintaining the spirit of the EU Green Deal.
What are the proposed changes?
EFRAG identified six key levers in June 2025.
Following a public consultation during August and September 2025, EFRAG has revised its recommendations. The table below summarises its key proposals under each lever.
EFRAG has also proposed deleting over 60 percent of the mandatory datapoints, on the basis that they are repetitive or less relevant, as well as all the voluntary datapoints.
Actions for management
- If your company is already reporting under the Corporate Sustainability Reporting Directive (CSRD), continue to apply currently effective ESRS. The revised standards will not be applicable until formally adopted by the Commission.
- If your company is not yet reporting under CSRD, review EFRAG’s technical advice and assess how it would affect your reporting strategy, considering the expectations of capital market participants and other stakeholders.
- Leverage time gained from the ‘Stop the Clock’ directive to continue implementing your reporting strategy. Focus on ‘no regret’ moves, such as developing DMA and enhancing policies, actions and targets (PATs) and metrics for material sustainability topics.
- Closely monitor progress on the Omnibus initiative to understand how regulatory changes may affect your organisation, as CSRD scoping discussions continue.
Speak to your KPMG contact for further information on the proposals and visit ESRS Today to keep up to date with the latest news and discussion.
What's next?
- The Commission will proceed with its own due process to determine whether the standards need to be revised further. This process is expected to include another public consultation in early 2026.
- The Commission intends the revised standards to be mandatory for 2027 reporting periods5. It may allow companies already applying ESRS to early adopt the revised standards for 2026. Until then, companies will continue to apply the currently effective ESRS framework, including the recent quick fix amendments.
- The timeline below shows key milestones in the simplification process.
1 The EU’s advisory body on corporate reporting.
2 Minimum disclosure requirements.
3 These tables summarise the key changes to currently effective ESRS proposed by EFRAG in its revised draft of November 2025. These amendments are not final and may be subject to further change.
4 Principal Adverse Indicators under the Sustainable Finance Disclosure Regulation (Regulation (EU) 2019/2088).
5 The revised ESRS will apply to those companies above the revised CSRD thresholds, to be agreed as part of the Omnibus initiative.
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