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🗞️ Driving the news: The European Commission has granted a one-month extension for the European Financial Reporting Advisory Group (EFRAG) to finalize its technical advice on the revision of the European Sustainability Reporting Standards (ESRS)
• The new deadline of November 30, 2025, will allow for a more thorough consultation process and provide EFRAG additional time to ensure high-quality recommendations for simplifying the EU’s sustainability reporting requirements
🔭 The context: The ESRS, which form part of the EU’s Corporate Sustainability Reporting Directive (CSRD), are designed to streamline sustainability reporting for companies across Europe
• The initial timeline, which set a tight deadline of October 31, 2025, raised concerns within EFRAG about the ability to maintain the quality of the standards
• The extension aligns with the European Commission’s broader goals to reduce regulatory burdens while improving sustainability transparency
🌍 Why it matters for the planet: Simplifying the ESRS could reduce the reporting burden on businesses, allowing them to focus on more impactful sustainability metrics
• However, the challenge will be balancing simplification with ensuring that key environmental, social, and governance data are not overlooked
• The process also holds importance for maintaining consistency with global standards such as those from the International Sustainability Standards Board (ISSB), ensuring the European framework remains interoperable
⏭️ What's next: The extended timeline will provide additional time for stakeholder consultations and internal deliberations, aiming to create a more streamlined and usable set of standards
• EFRAG is expected to gather input on the proposed simplifications and ensure that no new mandatory data points are added, while also working toward alignment with international sustainability reporting frameworks
• The final version of the revised ESRS will likely be critical for European businesses as they prepare for future compliance
💬 One quote: “The additional time will allow for a more inclusive and robust consultation process, helping us deliver technical advice that reflects both usability and ambition in sustainability reporting.” — Patrick de Cambourg, EFRAG SRB Chair
📈 One stat: EFRAG aims to reduce the number of mandatory data points in the ESRS by at least 50% in its revised version
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