3 tips to master the simplified ESRS from Patrick de Cambourg

Let me start with a simple question: When you hear “ESRS simplification,” what comes to mind?

Less work? Easier compliance? Lower costs?

You’re not wrong. Mandatory data points have been cut from around 800 (plus 300 voluntary) to approximately 300. But if that’s all you see, you’re missing the bigger opportunity.

Having led EFRAG’s work on the ESRS development, I’ve seen firsthand how companies can turn this shift into a strategic advantage. The organizations that will get the most value from simplified ESRS aren’t just looking for shortcuts, they’re using this moment to build stronger data systems, focus on what truly matters for management purposes, and position themselves for long-term success across multiple reporting frameworks for more robust value creation.

Here are 3 recommendations based on what I’ve learned.

1. Start preparing now

Companies in Wave 2 (those required to report under ESRS for fiscal year 2027 (tomorrow indeed in terms of project management!) have a unique opportunity.

Unlike Wave 1 companies that navigated the initial, more complex version of ESRS, Wave 2 organizations will benefit from the simplified framework. A delegated act expected mid-2026 will formalize these changes, streamlining and reducing the reporting burden.

My recommendation: Don’t wait for the delegated act to start preparing. Companies that begin structuring their data and processes now will be significantly ahead when the standards are “legally” confirmed. This early preparation becomes a competitive advantage.

Wave 1 companies, meanwhile, can leverage their 2024 and 2025 reports as a foundation, refining their approach based on lessons learned and the new simplification measures.

2. Focus on what really matters

The ESRS simplification process is built on a fundamental principle I championed at EFRAG: transparency should align with what companies actually manage, not create burdensome, box-checking exercises.

The reduction from approximately 1,100 datapoints to around 300 wasn’t arbitrary. It was designed to help companies focus on material sustainability matters (the issues that genuinely impact their business and stakeholders) rather than drowning in granular compliance requirements.

My recommendation: Treat your sustainability statement as a transparency exercise that reflects how your company manages material ESG topics. The simplified ESRS capitalizes on six key levers we developed at EFRAG, plus significant additional reliefs that allow companies to report what matters most.

These relief mechanisms include:

• Emphasis on a “top-down” approach to material impacts, risks and opportunities under a “fair presentation” umbrella
• Clearer and easier to read sustainability statements with possible executive summary and appendices for more granular quantitative information
• Phasing options for certain disclosure requirements 
• Materiality-based exemptions that let companies omit non-material topics
• Proportionality considerations for smaller or less complex organizations 
• Simplified disclosure options that reduce reporting burdens while maintaining transparency

3. Interoperability is your efficiency multiplier

One key and most powerful (and often underestimated) feature of the ESRS is its built-in interoperability with other major sustainability frameworks. This was a core design principle from day one.

Despite the simplification, ESRS remain fully compatible with ISSB, GRI, CDP, TNFD, and other global standards. This means companies implementing ESRS are simultaneously positioning themselves to comply with multiple frameworks if they so wish without duplicating effort or creating parallel reporting systems.

My recommendation: The goal is clear: no multiple reports needed. When implementing ESRS, companies should be in a position to comply with other frameworks without undue cost or effort. Interoperability is at the heart of the ESRS approach and is not endangered. On the contrary, it’s strengthened by the simplification.

This interoperability delivers three critical benefits:

1. Single data infrastructure: Build one centralized ESG data system that feeds multiple reporting requirements
2. Audit efficiency: A unified data foundation simplifies external assurance, reducing both burden and cost

Strategic flexibility: As regulatory and stakeholder expectations evolve, companies with interoperable systems can adapt quickly

Simplification is an opportunity

The ESRS simplification isn’t about lowering the bar. It’s about removing unnecessary complexity so companies can focus on what matters: transparent, decision-useful sustainability reporting that reflects how businesses actually manage ESG risks and opportunities.

Throughout my time at EFRAG, I saw how companies struggled with overly complex requirements that didn’t necessarily improve transparency. The simplified ESRS addresses this head-on.