On 3rd December, EFRAG published the revised ESRS (full texts here).

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MORE DETAILS

Following the publication of Omnibus I in February 2025, EFRAG  received the mandate to revise the ESRS with the primary objective to ensure that the standards are aligned with current policy priorities, while also simplifying and streamlining the reporting requirements to reduce complexity for companies.

Since then, they conducted two public consultations to collect input from stakeholders, to which FESI contributed.

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The main changes presented are as follows:

• Datapoints: 61% reduction of required datapoints if material, deletion of all voluntary disclosures.
• Information prioritisation: Usefulness of information as a general filter.
• Materiality assessment: Clearer guidance and alignment with audit needs + reduced documentation.
• Data: Removing the priority for “direct” supplier data.
• Information presentation: Principles-based rules for narrative sections like policies, actions and targets to give companies more freedom on how they present information.
• Enhanced interoperability with the ISSB Standards: common disclosures preserved where possible, enhancement thanks to fair presentation, revised GHG boundary and provisions for anticipated financial effects.
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Knowledge Hub:

• EFRAG has also officially launched its new Knowledge Hub, which allows easy access all ESRS related documents interactively. Members can easily create an account here.
• FESI has already tested the tool: the Hub currently includes all ESRS texts and compliance documents in force (with the revised text expected to be uploaded once approved). It also allows users to click on any referenced datapoint or piece of legislation and be taken directly to the relevant paragraph, with clear definitions appearing as you hover or click on key terms. The Hub seems to be a useful tool for compliance, but FESI would welcome any feedback from members.

FESI CONFERENCE SUMMARY

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The revised standards were officially presented at an EFRAG conference, FESI attended the conference and have written a summary.
The full summary is attached and the main points included:

• Gross vs. Net Measurements: Many companies were reported to express uncertainty about whether to use gross or net figures in the reporting under new ESRS. The revised ESRS introduce a clearer three-stage structure to avoid this uncertainty:
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  • Remediation: Companies must report on adverse impacts that have occurred and actions taken to remediate them.
  • Prevention: Report on measures to prevent or mitigate potential impacts, including how they are assessed and measured.
  • Mitigation / Follow-up: Report on actions after mitigation measures, allowing users to evaluate effectiveness over time.
  • Upcoming Implementation Guidance: New guidelines on materiality and ESRS G1 (Business Conduct) are planned for 2026, covering anticipated financial effects and transition plans.
  • Anticipated Financial Effects and Climate Disclosures: These were highlighted as among the most challenging topics. Although not mandatory, climate disclosure is expected to encourage companies to conduct robust assessments of climate-related risks and opportunities.
  • Adequate Wages Reporting (Social standards): Flexibility has been introduced on disclosures for adequate wages, including partial scope reporting where data collection is difficult, while maintaining transparency on benchmarking.
  • Transition Plans: A transition plan is not automatically required. Companies may report on progress.

NEXT STEPS

The Commission will now prepare and approve a Delegated Act containing the revised standards before they can enter into force. The earliest possible entry into force date for the revised standards would be summer 2026.

‍Early adoption may already be possible for financial year 2026, with full applicability expected for financial years starting in 2027, assuming the process moves forward as planned.