The European Financial Reporting Advisory Group’s (EFRAG) revised draft of the European Sustainability Reporting Standards (ESRS) is drawing criticism from civil society groups who warn the changes could significantly weaken corporate transparency regarding environmental and social impacts. The concerns center on a substantial reduction in the number of data points companies will be required to report, a move mandated by the European Commission.
WWF EU has voiced strong objections, stating the revisions risk undermining the potential of the ESRS to drive progress toward EU sustainability objectives. Mariana Ferreira, Sustainable Finance Policy Officer at WWF EU, described the Commission’s approach as weakening “much-needed and carefully negotiated Green Deal laws” and creating “regulatory uncertainty” through hasty changes lacking sufficient evidence. She warned that the focus on reducing the volume of reporting obligations, rather than improving coherence and implementation support, could “lead to a significant slowdown of the green transition for EU companies.”
The revised ESRS now requires approximately 370 datapoints, representing a 60-70% reduction from the original proposal. This contrasts sharply with the International Financial Reporting Standards (IFRS) 1 and 2, which collectively require around 335 datapoints, but with a narrower focus primarily on climate-related disclosures and limited coverage of social and broader environmental issues. The ESRS, even in its revised form, continues to encompass a full spectrum of environmental, social and governance (ESG) topics.
The changes come as companies prepare to comply with the EU’s Corporate Sustainability Reporting Directive (CSRD), which mandates increased ESG disclosures. WWF highlights that its Risk Filter Suite, including the Water Risk Filter and Biodiversity Risk Filter tools, can assist companies in fulfilling these fresh reporting requirements, particularly regarding water and biodiversity impacts. The CSRD came into force in January 2023, and the first sector-agnostic ESRS were adopted in July 2023.
Despite the concerns raised by WWF and others, a recent survey by Sapien’s found that 90% of European companies intend to continue sustainability reporting even after the changes introduced by the EU Omnibus Directive. This suggests a continued commitment to transparency, even with a potentially less burdensome reporting framework. However, the effectiveness of this reporting in driving meaningful change remains a key point of contention.
The revisions to the ESRS follow a pattern of adjustments to EU Green Deal legislation under pressure from industry, according to WWF. A July 31, 2023, statement from WWF-Ukraine, operating under the auspices of WWF-CEE, accused the Commission of undermining standards for corporate sustainability reporting due to industry influence.
The Science Based Targets Network (SBTN) has also weighed in, emphasizing the importance of linking CSRD reporting with science-based targets for nature. The organization notes that the ESRS standards, as currently framed, are a critical component of this process.
As of March 12, 2026, the European Commission has not publicly responded to the specific criticisms leveled by WWF and other civil society organizations regarding the revised ESRS. The next scheduled step in the process is the finalization and publication of the ESRS, with a deadline yet to be announced.
