On 20 June 2025, EFRAG published its Progress Report detailing significant updates to the European Sustainability Reporting Standards (ESRS). These changes were made to ease the reporting burden under the Corporate Sustainability Reporting Directive (CSRD). The simplification efforts come in response to a formal request by the European Commission and are designed to support more practical, streamlined disclosures for companies including those operating in fashion and textiles.What's Changing?To achieve this, EFRAG introduced six simplification levers:Simplified Double Materiality Assessment (DMA): Companies can now begin materiality assessments from their core business model, focusing on well-defined impacts and risks rather than exhaustive bottom-up analysis.Redefined Minimum Disclosure Requirements: A reduction in duplicative datapoints will allow businesses to concentrate on relevant, principle-based reporting without falling into tick-box compliance.Executive Summaries & Appendices: Reports will benefit from better readability and structure, enabling clear executive summaries and separate appendices for non-material topics.Clear Labelling of Voluntary Disclosures: By clearly marking what's voluntary, companies gain clarity around what must be reported and avoid unnecessary audit complexity."Undue Cost and Effort" Exemptions: Targeted reliefs have been introduced for sensitive disclosures and scenarios such as M&A activity, helping ease implementation pressures.Global Alignment: ESRS has been tuned to better align with international sustainability standards like ISSB, facilitating cross-border reporting and investor comprehension.Key DatesExposure Draft (July 2025)Public Consultation (late July-September 2025)Final ESRS adoption (anticipated end of 2025)EFRAG's estimate of a50%+ reduction in mandatory datapointsshould reduce the administrative compliance burden for businesses.UKFT members can read the latest updates on the CSRDhereandhearwhich detail the amendments that have been made in 2025. For member enquiries, please contactinfo@ukft.orgAre you looking for compliance advice? As part of UKFT membership, we offer practical, business-focused support to help UK fashion and textile businesses navigate regulatory compliance across global markets. Our team works to ensure your business is informed, prepared and aligned with current and upcoming legislation affecting the UK fashion and textile industry.FIND OUT MORE
