ESRS update: June 2025 reforms promise simpler, sharper sustainability reporting
Disclaimer: New EUDR developments - December 2025
In November 2025, the European Parliament and Council backed key changes to the EU Deforestation Regulation (EUDR), including a 12‑month enforcement delay and simplified obligations based on company size and supply chain role.
Key changes proposed:
- New enforcement timeline: 30 December 2026 for large/medium operators, 30 June 2027 for small/micro operators
- Simplified DDS: One-time declarations for small and micro primary producers
- Narrowed scope: Most downstream actors and non‑SME traders would no longer need to submit DDSs
- New DDS requirement: Estimated annual quantity of regulated products must be included
These updates are not yet legally binding. A final text will be confirmed through trilogue negotiations and formal publication in the EU’s Official Journal. Until then, the current EUDR regulation and deadlines remain in force.
We continue to monitor developments and will update all guidance as the final law is adopted.
Key Takeaways
- EFRAG's June 2025 report targets a 50%+ reduction in mandatory ESRS datapoints to sharpen CSRD sustainability reporting.
- Revised ESRS are expected in mid-2026, with most large companies applying new requirements for FY2026 reporting starting in 2027.
- Shift now to a top-down double materiality assessment and consolidate duplicate policy disclosures across ESRS standards.
- Coolset's CSRD product helps structure evolving ESRS disclosures with guided templates and centralized evidence management.
In June 2025, EFRAG published a significant update to the European Sustainability Reporting Standards (ESRS) as part of the ongoing simplification process triggered by the EU Omnibus proposal. This article summarizes what changed and what it means for companies preparing to report under CSRD.
What EFRAG published in June 2025
EFRAG's June 2025 update was a key milestone in the ESRS simplification process. It covered:
- A public consultation on proposed changes to the mandatory/conditional status of specific data points across all ESRS standards
- Clarifications on the double materiality assessment process and how companies should apply materiality thresholds
- Initial guidance on how value chain phase-in provisions interact with the Omnibus simplifications
- Technical corrections and clarifications to ESRS 1 and ESRS 2 on cross-cutting requirements
The context: why ESRS is being simplified
The EU's Omnibus I Directive, adopted in February 2026 but preceded by extensive preparation, directed EFRAG to simplify the ESRS by reducing mandatory data points, eliminating sector-specific standards, and lowering the overall reporting burden for companies in scope.
For a full overview of what the Omnibus proposal means for CSRD scope and timelines, see our dedicated guide.
What companies should do with this update
For Wave 1 companies already reporting on FY2024: the June 2025 update affects FY2026 reporting (applying the amended ESRS from the new adoption date). Continue with your current approach for FY2024 and begin reviewing the amended data point structure for FY2026.
For Wave 2 companies (now reporting from FY2027): use the EFRAG simplification process to understand the final scope of your reporting obligations before investing heavily in data collection systems. The final amended ESRS, expected to be adopted by the European Commission by mid-2026, will be the definitive framework.
For the most current picture of what the amended ESRS require, see our guide to the amended ESRS.
How Coolset tracks ESRS developments
Coolset continuously updates its CSRD platform to reflect the latest ESRS requirements. When EFRAG publishes updates — like the June 2025 consultation — Coolset incorporates the changes into its DMA workflow, data collection templates, and disclosure mapping. Companies using Coolset can be confident their reporting aligns with the current state of the standards.
To see how Coolset handles ESRS updates in practice, book a demo.
What has changed in EFRAG's new ESRS data points, released in December
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