The European Commission has opened a one-month public feedback period on draft revised European Sustainability Reporting Standards and a separate voluntary reporting standard for smaller companies.
The consultation runs until 3 June via the EU’s “Have Your Say” portal, the Commission informed on Wednesday.
The revised standards cover how companies report sustainability information under the Corporate Sustainability Reporting Directive (CSRD), an EU law requiring certain businesses to disclose information on environmental, social and governance matters.
Mandatory data points in the draft revised standards have been cut by more than 60%, while total data points have been reduced by more than 70%.
The Commission said the draft changes are expected to reduce reporting costs per company by more than 30%.
Voluntary standard and “value chain cap”
A separate draft voluntary standard is intended for companies that are not required to report under the CSRD, the Commission said.
It includes a “value chain cap” — companies covered by the CSRD would not be able to ask suppliers or other value-chain partners with 1,000 employees or fewer for information beyond what is set out in the voluntary standard.
The revised standards are largely based on technical advice from the European Financial Reporting Advisory Group (EFRAG), which the Commission described as its independent multi-stakeholder advisory body on reporting standards.
After the feedback period closes, the Commission said it will adopt the two delegated acts as soon as possible, before sending them to the European Parliament and the Council for scrutiny under a “no-objection” procedure lasting two months, which can be extended by a further two months at either institution’s request.
