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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: The European Commission has instructed EFRAG to draft revised European Sustainability Reporting Standards (ESRS) by 31 October 2025, reflecting a major shift in the EU’s sustainability reporting approach
• This follows the adoption of the "Omnibus Simplification Package", which aims to reduce regulatory burdens on businesses
• The reforms are designed to streamline and simplify ESRS ahead of the 2027 reporting cycle
🔭 The context: Initial ESRS, adopted in 2023, were part of the EU’s broader Corporate Sustainability Reporting Directive (CSRD) under the Green Deal
• Companies struggled with compliance, prompting delays and calls for reform
• A political shift in 2024, marked by growing backlash against the economic cost of green policies, spurred the Commission to scale back sustainability requirements
🌍 Why it matters for the planet: The proposed reduction in reporting obligations risks weakening ESG accountability across the EU
• Climate advocates warn that scaling down disclosures may hinder the bloc's transparency and green transition goals
• However, supporters argue it balances environmental ambition with economic pragmatism
⏭️ What's next: EFRAG must submit a timeline by 15 April and deliver revised ESRS by 31 October 2025
• The European Parliament is still debating the broader directive, with final adoption expected later this year
• Companies may be allowed to apply the new standards as early as the 2026 reporting year
💬 One quote: "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 original ESRS included over 1,100 mandatory data points, many of which are now slated for removal or simplification under the proposed revisions
See here detailed sustainability performance of companies like Unilever, Nestlé, and TotalEnergies
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