Significant simplification: up to 57% reduction in the number of data points in corporate sustainability reports

European sustainability reporting is about to undergo a major transformation: according to the progress report published by the EFRAG (European Financial Reporting Advisory Group) in June 2025 and the ESRS draft published at the end of July, the number of data points to be disclosed by the companies concerned could be reduced by up to 57%. This step is not only aimed at narrowing the scope of data, but also at simplifying the ESRS (European Sustainability Reporting Standards) standards, making them more transparent and easier to manage for corporate reports.

The Omnibus package published by the European Commission in February this year included the so-called “Stop the Clock!” proposal, according to which the introduction of sustainability reporting obligations for companies entering the second round will be postponed to 2028 (for the 2027 financial year), giving them the opportunity to prepare more thoroughly for the standards.

Reporting what matters

ESRS reporting came into effect for several large companies in 2025, and the hundreds of reports published in the first cycle have highlighted information overload, content duplication and fragmentation in reporting. EFRAG has therefore decided to simplify the dual materiality assessment (DMA) by strengthening the “top-down” approach. This means that companies report based on their business model, focusing on the most important, relevant sustainability topics, reducing the collection of excessive amounts of less important data.

“The revision will also focus on the consolidation and integration of reports, thus separating voluntary and mandatory data, and presenting EU Taxonomy data in a separate appendix. By eliminating previous overlaps, a clearer system between minimum disclosure requirements and thematic standards will be established, making the work of companies easier,”

emphasized Anita Hatta, Partner responsible for ESG reporting at PwC Hungary.

Other simplifications include clarification of the treatment of acquisitions and divestitures, a broader application of the “undue cost and effort” principle, and simplifications in the case of reporting boundaries and missing input data, which also serve to reduce the reporting burden.