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illuminem summarises for you the essential news of the day. Read the full piece on Forbes or enjoy below:
🗞️ Driving the news: On April 25, the European Financial Reporting Advisory Group (EFRAG) submitted a timeline for rewriting the European Sustainability Reporting Standards (ESRS) in response to the European Commission’s directive to simplify sustainability reporting
• The move follows political pressure and the Omnibus Simplification Package, with a final draft expected by October 31, 2025
• An online stakeholder survey is open until May 6 to gather input ahead of a public consultation scheduled for September
🔭 The context: The ESRS were introduced under the 2022 Corporate Sustainability Reporting Directive (CSRD) as part of the European Green Deal to enforce corporate climate and ESG reporting
• However, backlash over regulatory burdens — especially after the 2024 European elections, which saw a rightward shift — led to calls for simplification
• In February 2025, the European Commission proposed to significantly reduce these requirements, tasking EFRAG with a rewrite even before full parliamentary approval
🌍 Why it matters for the planet: Reducing sustainability reporting obligations could weaken corporate accountability on climate and social impacts, potentially undermining the EU’s climate goals
• Conversely, a simplified framework might increase compliance rates among businesses struggling with complex regulations
• The balance between maintaining transparency and reducing bureaucracy will be crucial to the EU’s climate leadership
⏭️ What's next: EFRAG will draft amendments from May through July, release an Exposure Draft in August, and conduct a public consultation in September before submitting the final version to the European Commission in October
• The European Parliament will debate the broader proposal to reduce CSRD requirements, with final reforms anticipated by late 2025
• Businesses and civil society stakeholders are closely watching to assess how the new standards will affect reporting obligations
💬 One quote: “As part of this initiative, we propose to adopt a delegated act to revise and simplify the existing European Sustainability Reporting Standards (ESRS),” — Maria Luís Albuquerque, EU Commissioner for Financial Services and Investments
📈 One stat: The Corporate Sustainability Reporting Directive (CSRD) initially expanded reporting obligations to over 50,000 companies across the European Union
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