These changes are also expected to reduce reporting costs by more than 30 per cent per company, in line with the Commission’s objective of reducing the burdens associated with reporting requirements by 25 per cent.
Consejeros Editorial Team
On 3 July, the European Commission adopted the revised European Sustainability Reporting Standards (ESRS), including a voluntary reporting standard for small businesses, with the aim of improving transparency and reducing the administrative burden across the EU.
The revised standards adopted, which form part of the Omnibus I simplification package, are shorter and clearer, introduce new flexibilities and streamline key processes. Specifically, they reduce the number of mandatory data points by more than 60 per cent and the total number of data points by more than 70 per cent. These changes are expected to reduce reporting costs by more than 30 per cent per company, in line with the Commission’s target of reducing the burdens associated with reporting requirements by 25 per cent.
Meanwhile, the voluntary reporting standard provides a single reference framework for the smallest companies that fall outside the scope of the Sustainability Reporting Directive. For these companies, it will now be easier to respond to specific requests for sustainability information received from large financial institutions and companies.
The new framework also sets a limit on the requirements that companies obliged to submit these reports may pass on to their suppliers and other members of their value chain, meaning they cannot demand more information than that provided for in this voluntary model.
The proposal also incorporates the technical recommendations drawn up by the European Advisory Group on Financial Reporting, following consultations with companies and other stakeholders during 2025.
