The European Commission recently approved a one-month extension for the European Financial Reporting Advisory Group (EFRAG) to finalize its revised technical advice on the European Sustainability Reporting Standards (ESRS). Originally due by October 31, the new deadline of November 30, 2025, reflects growing concerns around the complexity of the EU’s sustainability reporting framework and the need for a more practical approach.
The ESRS forms the backbone of the EU’s Corporate Sustainability Reporting Directive (CSRD), which significantly expands sustainability disclosure requirements for thousands of companies, including non-EU businesses with significant operations in the bloc. The current revision process is part of the Commission’s broader Omnibus I package, aimed at reducing the regulatory burden, especially on small and mid-sized enterprises.
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EFRAG, which developed the original ESRS adopted in 2023, had flagged the initial timeline as too compressed to allow for meaningful stakeholder input. With this extension, the group has expanded its public consultation window to 60 days, starting at the end of July 2025. The aim is to deliver simplified but credible standards that are both decision-useful and feasible for companies to implement.
The revision is expected to cut mandatory data points by at least 50%, a move likely to be welcomed by preparers across Africa and other emerging markets who have viewed the CSRD requirements as dense and costly. The European Commission’s letter to EFRAG underscores that no new data points should be added, and none of the current voluntary disclosures should become mandatory, signaling a serious attempt to streamline reporting.
This development holds relevance for Africa in multiple ways. Many African companies with EU supply chain linkages or listed on European exchanges are indirectly subject to the CSRD. Moreover, Africa is increasingly positioning itself as a partner in sustainable trade and finance with the EU. Ensuring that reporting obligations are manageable could boost participation from African businesses in green and sustainable markets.
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Of particular importance is the EU’s guidance to maintain interoperability between the ESRS and the International Sustainability Standards Board (ISSB) standards. This matters for Africa, where multiple jurisdictions are aligning with ISSB to foster cross-border reporting coherence. However, Brussels has acknowledged that strict alignment may sometimes obstruct simplification, opening the door for case-by-case flexibility.
The European Commission has also encouraged EFRAG to ensure that the revised standards focus on “strategically important information” rather than extensive, technical disclosures. This shift could help African firms concentrate on material sustainability issues that impact both their operations and development priorities—such as climate resilience, social impact, and governance risks—without being overwhelmed by compliance complexity.
As the global sustainability reporting architecture evolves, Africa has a stake in how standards are shaped. The ESRS revision, and its simplification push, signals a growing recognition that transparency must go hand in hand with usability. If done right, it could foster broader adoption, reduce compliance gaps, and support more effective capital flows into sustainable development on the continent.
