Simpler rules ahead for Sustainability Reporting

After the rollercoaster in the CSRD reporting landscape we witnessed lately, including Omnibus updates with a lot of consultations and new guidance, the ESRS drafts are shaping up, aiming to make sustainability reporting clearer, more flexible and more strategic.

Mandatory data points will drop by 57%, shifting the focus from quantity to relevance. Materiality assessments will become simpler and faster, moving from a bottom-up to a top-down approach, while recognizing the practical realities of data collection. Together, these updates aim to make reporting more efficient, consistent, and aligned with business goals.

As sustainability reporting is evolving more and more toward a strategic tool that connects finance, risk, and long-term value creation, we would like to shed some light on these changes and what they could mean for your organization.

ESRS 1 – General Requirements

Companies can now report in a more principle-based and flexible way, focusing on material risks. Resilience assessment is simplified and tied to actual risks rather than every scenario, making reporting more practical.

ESRS 2 – General Disclosures

All key sustainability information (policies, actions, and targets) is now under one roof. Governance, strategy, and value chain disclosures are streamlined, while the focus on Impacts, Risks, and Opportunities (IROs) ensures the report reflects how companies actually operate.

ESRS E1 – Climate Change

Climate reporting becomes simpler and action-oriented. Transition plans are high-level, energy use and GHG metrics are easier to report, and the focus is on real reductions. Carbon pricing and anticipated financial effects are also more practical to disclose.

Suggestie: Climate change reporting now centers on absolute GHG reduction targets aligned with the 1.5°C goal, supported by streamlined, action-oriented transition plans and clearer guidance on scenario analysis. Reporting becomes simpler and more practical, with easier disclosure of energy use, GHG metrics, carbon pricing, and anticipated financial effects, shifting the focus toward real, measurable emission reductions.

ESRS E2 – Pollution

Substance reporting is now focusing on chemical manufacturers/importers and users. And stronger focus in microplastics.

ESRS E3 – Water and Marine Resources

Water metrics are simplified, focusing on water resources, using a simplified approach to calculate water consumption, while intensity measures are removed for clarity. And removal of marine disclosures.

ESRS E4 – Biodiversity and Ecosystems

Biodiversity reporting is more flexible, with metrics consolidated and location-specific disclosures organized for clarity. Resilience metrics are no longer mandatory.

ESRS E5 – Circular Economy and Resource Use

Definitions are clearer and reporting emphasizes key materials, waste, and product eco-design. Metrics and targets are simplified for practical use. Narrowed scope for resource use to product durability, recycled content, and material hazardous waste.

ESRS S1 – Own Workforce

Workforce reporting is leaner, covering pay, health & safety, training, diversity and work-life balance without unnecessary detail. Non-employee data is minimized, and gender breakdowns are reduced to essential points.

ESRS G1 – Business Conduct

Governance and ethics reporting is structured around policies, actions, and measurable targets. Key metrics on corruption, lobbying, and payment practices are clarified, and SFDR datapoints are maintained.

For many organizations, this will be a transition period requiring updated data, systems, and governance as the final ESRS’s are expected by the end of November 2025. But it’s also an opportunity to simplify processes, reduce complexity, and enhance stakeholder trust. 

At TriFinance, we can support you in navigating these challenges, from designing efficient reporting processes to implementing data systems. We also assist with the VSME, the voluntary sustainability reporting standard, helping you to go beyond compliance and embed ESG in your strategy.

• The forgotten S in ESG: Social sustainability as a strategic lever. Takeaways from our ESG roundtable discussion on the 'S' in ESG at SD Worx.
• How do Belgian companies handle carbon accounting? Takeaways on carbon accounting from our ESG roundtable at Cordeel HQ in Temse