Sustainability in review: simplification or loss of ambition?
The European Commission recently opened a public consultation period on the revision of the European Sustainability Reporting Standards (ESRS) and on a new voluntary reporting standard for smaller companies.
This revision comes in the context of the "Omnibus" package, which seeks to simplify ESG reporting obligations, reduce administrative burdens and strengthen the competitiveness of European companies. Among the proposed changes are a reduction in the number of mandatory datapoints, greater flexibility in reporting requirements and clearer limits on requests for information along the value chain.
But this discussion raises an essential question:
Are we simplifying reporting... or simplifying ambition?
In recent years, many companies have invested time, resources and internal capacity to structure reporting processes, carry out dual materiality analyses, involve value chains and integrate sustainability into strategic management. At the same time, investors, customers and other stakeholders have started to demand more comparable, transparent and consistent data.
It's true that the current regulatory framework has brought significant challenges - especially for SMEs and companies at less mature stages of the ESG journey. However, it has also accelerated something important: the ability of organizations to better understand their impacts, risks and opportunities.
The revision now under public consultation therefore represents a critical moment for the future of sustainability reporting in Europe.
What's at stake?
The European Commission argues that the changes will make it possible to reduce complexity without compromising the objectives of transparency and sustainability.
Even so, several experts and stakeholders warn of the risks associated with an excessive relaxation of the rules:
less comparable information;
loss of quality and consistency of ESG data;
increased risk of greenwashing;
creation of regulatory uncertainty;
demotivation of companies that have already invested seriously in sustainable transformation.
More than a technical discussion, this debate directly influences how sustainability will be integrated into business decisions in the coming years.
Some good practices that continue to make sense - regardless of the review.
What's next?
The European Commission's public consultation is open until June 3, 2026 and allows companies, associations, professionals and citizens to contribute to the future of European sustainability standards.
At a time when there is so much talk of simplification, perhaps the most important question is something else:
What kind of sustainability do we want to make simpler?
Sustainability reduced to the regulatory minimum?
Or sustainability capable of strengthening competitiveness, trust, transparency and business resilience?
GRACE challenges its Members to follow this discussion and share their perspective through the European Commission's "Have Your Say" platform.
Because the future of ESG in Europe is not only decided in Brussels.
It is also decided by the voice of the companies on the ground. Responsible business. It's your business!
European Commission public consultation:
Have Your Say - Revised ESRS
