Companies are hoping for a reduction in reporting obligations.

The preparatory work for simplifying the ESRS (European Sustainability Reporting Standards) has begun. This is running in parallel with revising the Corporate Sustainability Reporting Directive (CSRD) (see News 04/2025). The objective here is to comprehensively shorten the Delegated Act that regulates the ESRS.

Reporting about workplace accidents and occupational diseases

The standards set out in the delegated act define the information that the companies must disclose in their sustainability reports. They are based on recommendations made by EFRAG (European Financial Reporting Advisory Group), an advisory body to the European Commission. The current version also requires companies to include information about notifiable or fatal workplace accidents and occupational diseases in their reports. EFRAG has been tasked with revising the ESRS.

The extensive obligations are causing problems

Fulfilling the reporting obligations is time-consuming. Companies that are subject to two or more sustainability-related laws often have to report the same information in different formats. The scope of the required information is also causing problems. The reports often contain several hundred pages in order to cover all of the sustainability criteria. Small and medium-sized companies are also affected. This is because they have to provide information to large companies so that they can include it in their reports.

Data gaps relating to work-related illnesses

Under the current ESRS, companies must state how many incidents occurred that could be linked to work-related injuries, illnesses or fatalities. This also includes occupational diseases. However, information about occupational diseases is not generally available to the companies obliged to report. This is just one example of reporting obligations that companies either find difficult or almost impossible to fulfil. All the more reason for EFRAG and the European Commission to reduce the scope of the ESRS.

EFRAG's plans for the revision

EFRAG intends to streamline the ESRS to improve readability and usability. Ambiguities will be eliminated and the number of obligatory data points will also be reduced. The least important data points will also be removed. EFRAG has not yet provided details about which data points this will apply to. It remains to be seen whether reporting obligations that are difficult to fulfil will be abolished.

EFRAG has to submit an ESRS revision proposal to the European Commission by the end of October. The initial round of consultations ended at the beginning of May. EFRAG is currently drafting ESRS revision proposals based on the findings. The proposed revisions are to be finalised at the end of July. A second round of consultations will be held along with the publication. There will only be a short time frame for submitting feedback due to the tight schedule.