EU Publishes Simplified Corporate Sustainability Reporting Standards
Newly published simplified and voluntary European Sustainability Reporting Standards aim to reduce the CSRD compliance burden by cutting the number of mandatory disclosure datapoints by over 60%.
The European Union has published simplified European Sustainability Reporting Standards (ESRS) and new voluntary standards (VESRS) in its Official Journal, finalizing a key part of its effort to reduce the administrative burden of the Corporate Sustainability Reporting Directive (CSRD). The package significantly cuts the number of mandatory reporting datapoints—by over 60%, according to the Commission—and raises the financial thresholds for companies to fall within the CSRD's scope, though member states must still transpose these threshold changes. For major-firm clients, these revisions will materially alter compliance strategies, potentially reducing data collection costs. The new voluntary standards also create a framework for smaller, out-of-scope value-chain partners facing data requests from larger customers. The simplified ESRS will apply to financial years starting on or after January 1, 2027, with an early adoption option for 2026. Counsel should also monitor the separate EFRAG consultation on reporting standards for certain non-EU companies, which is expected to be finalized in mid-2027.