The European Financial Reporting Advisory Group (EFRAG) has just released a progress update that could significantly reshape how companies report under the Corporate Sustainability Reporting Directive (CSRD). The update outlines the following proposal: reduce mandatory datapoints by more than 50% while maintaining the CSRD’s core ambition—ensuring transparent, decision-useful sustainability reporting for stakeholders across the EU.
Key Highlights of the Proposal
EFRAG’s draft revisions, expected to be submitted for public consultation in mid-July, aim to streamline the ESRS framework while increasing usability and global coherence. Among the main changes proposed:
Revised Double Materiality Process: A more top-down approach, focusing primarily on a company’s business model and strategic priorities, is being introduced to make assessments more manageable and relevant.
Improved Structure and Clarity: The new proposal reduces redundancies and better distinguishes between mandatory and voluntary disclosures, helping companies focus on what matters most.
Global Alignment: Greater convergence with international standards such as those issued by the ISSB, GRI, and IFRS (S1/S2) enhances global comparability and coherence.
Sector-Specific Adaptation: Special attention is given to the needs of financial institutions and other sectors requiring tailored disclosure approaches.
Next Steps: Exposure Draft and Consultation
The Exposure Draft is expected in mid-July 2025, followed by a public consultation during the summer. This will be a critical moment for stakeholders to provide feedback on the future of sustainability reporting in Europe.
At Forethix, we see this as a pivotal step toward more focused, accessible, and interoperable ESG reporting across markets. For companies already navigating the complexities of the CSRD—or those preparing to begin—we are here to help you understand the impact of these changes and adapt your sustainability strategy accordingly.