ESRS “Quick Fix”: Less Burden, Same Obligation
The European Commission has introduced updates to the European Sustainability Reporting Standards (ESRS) to ease the first reporting cycle based on fiscal year 2024. Companies will report in 2025 on 2024 activities.
The changes reduce initial workload but do not eliminate reporting obligations. Key adjustments include extending transitional reliefs, removing voluntary disclosures, and applying phase-in measures to large companies previously limited to SMEs.
What Is the ESRS “Quick Fix”?
On July 12, 2025, the European Commission adopted a “quick fix” package to adjust the first set of ESRS. This technical update simplifies year-one compliance for companies applying the Corporate Sustainability Reporting Directive (CSRD) for the first time.
What Changed
Extended Disclosure Timelines
Companies can postpone reporting on selected topics until 2026, including financial effects of climate risks, biodiversity impacts, and workers in the value chain.
Expanded Transitional Measures
Previously available only to listed SMEs, phase-in options now apply to large companies in Wave One,those with over 500 employees or already subject to the Non-Financial Reporting Directive (NFRD).
Removed Voluntary Items
All “may disclose” voluntary data points have been eliminated, emphasizing clarity and consistency.
Upcoming 2027 Revision
EFRAG is developing a major simplification expected to reduce required data points by 66%.
What Didn’t Change
- CSRD remains in effect
- Non-Financial Statements (NFS) remain mandatory through 2026
- Wave One companies must still report in 2025 for fiscal year 2024
- Data traceability and consistency requirements persist
What Should Companies Do Now
Companies should confirm Wave One status, apply available reliefs without delaying infrastructure development, establish data traceability from the outset, and break organizational silos by connecting sustainability data with finance, procurement, HR, and compliance functions.
How We See It at Dcycle
This is not a delay. It’s a chance to build smarter systems.
The goal focuses on controlling reported data rather than increasing reporting volume. Dcycle enables companies to centralize ESG data, automatically apply ESRS structure, track calculations and sources, and reuse information across CSRD, Non-Financial Statements, CDP, client requests, and audits.
