EFRAG has published its Progress Report (as of 20 June) providing an update of the work performed so far and of the activated levers to simplify the European Sustainability Reporting Standards (ESRS). The update responds to a 5 May 2025 request from Commissioner Albuquerque, who asked for a written update by 20 June explaining how the intended modifications would reduce the reporting burden on companies.

To this end, EFRAG is activating six key levers aiming to reach a 50+ per cent reduction in the number of mandatory datapoints:

• LEVER 1: Simplification of the Double Materiality Assessment (DMA)
• LEVER 2: Better readability/conciseness of the sustainability statements and better inclusion in corporate reporting as a whole
• LEVER 3: Critical modification of the relationship between Minimum Disclosure Requirements (MDR) and topical specifications
• LEVER 4: Improved understandability, clarity and accessibility of the standards
• LEVER 5: Introduction of other suggested burden-reduction reliefs
• LEVER 6: Enhanced interoperability

The Progress Report is preceded by a cover letter, which highlights the main takeaways.

Patrick de Cambourg, EFRAG SRB Chair, stated: “This Progress Report reflects our commitment to ensuring that the ESRS remain both effective and proportionate. By responding proactively to the European Commission’s request, we aim to support companies in meeting sustainability reporting requirements without unnecessary complexity.”

Chiara del Prete, EFRAG SR TEG Chair, stated: “We are very grateful to the companies that completed their first-time ESRS sustainability statements for their high-level mobilisation. Thanks to the extensive dialogue we have had over the past two months with them, as well as with auditors and other involved stakeholders, we now have extensive evidence on what needs to be simplified. We are all working hard to prepare the best possible exposure draft within the available timeframe.”

The Progress Report was approved by the EFRAG Sustainability Reporting Board (SRB) in a public session on 19 June 2025. It summarises the preliminary decisions taken so far and outlines how the changes aim to simplify the standards while maintaining their integrity. The proposals remain subject to further discussions, with the final decisions by the EFRAG SRB expected by the end of July.