Recital (18)

Directive (EU) 2022/2464 requires certain undertakings to report sustainability information in accordance with mandatory European Sustainability Reporting Standards (ESRS). In July 2023, the Commission adopted the first set of ESRS. To deliver swiftly on the simplification and streamlining of sustainability reporting, the Commission, within six months of the entry into force of this Directive, will adopt a delegated act to revise the first set of ESRS in order to substantially reform ESRS by: (i) removing datapoints deemed least important for general purpose sustainability reporting; (ii) prioritising, to the extent possible, quantitative datapoints over narrative text; (iii) further distinguishing between mandatory and voluntary datapoints; (iv) providing clear instructions on how to apply the materiality principle in order to ensure that undertakings are only required to report material information and to reduce the risk that assurance service providers inadvertently encourage undertakings to report information that is not necessary or dedicate excessive resources to the materiality assessment process; (v) improving consistency with other pieces of Union legislation, including financial services legislation; and (vi) taking account, to the greatest extent possible, of interoperability with global sustainability reporting standards. The revision will clarify provisions that are deemed unclear and simplify the structure and presentation of the standards. It will also make any other modifications that might be considered necessary considering the experience gained in the application of the first set of ESRS. Sustainability reporting standards should also take account of the difficulties that undertakings might encounter in gathering information from actors throughout their value chain, especially from those which are not subject to the sustainability reporting requirements and from suppliers in emerging markets and economies.