Newly proposed standards for sustainability reporting by European corporates represent an “absolute minimum to meet investors’ needs”, according to Eurosif, the European Sustainable Investment Forum.
The pan-European association said the European Commission should accept the current proposals, published by an advisory body on 3 December, warning that “cutting too deeply risks weakening Europe’s leadership on transparent and reliable sustainability reporting”.
The European Financial Reporting Advisory Group (EFRAG) published its advice on simplified European Sustainability Reporting Standards (ESRS) to support efforts to “substantially” reduce the number of data points, clarify provisions, improve consistency with EU legislation, simplify structure and enhance interoperability with global sustainability reporting frameworks.
The commission requested the simplification as part of its sustainability omnibus package, designed to streamline the Corporate Sustainability Reporting Directive, the Corporate Sustainability Due Diligence Directive and related legislation.
Despite preserving “critical information” for investors such as climate and biodiversity transition plans, Eurosif said the revised ESRS – which represent a 61% reduction in data points – removed “some essential disclosures” including climate scenario analysis and detailed exposures to physical and transition climate risks.
Eurosif also warned against “extensive” reliefs granted to preparers on cross-cutting disclosures which means they would not need to establish timelines for full compliance. “This risks turning these reliefs into common practice rather than exceptional measures and undermines the credibility and comparability of reports for investors,” it said.
The European Commission is due consider EFRAG’s advice before adopting the delegated acts for the omnibus package, which are expected in mid-2026. Eurosif urges the commission should “swiftly adopt” the revised acts, adding that further cuts in data points, or new exemptions, would “undermine the relevance of the ESRS and their usability for investors”.
