ESRS Exposure Drafts - Changes to Governance

The European Sustainability Reporting Standards (ESRS) are currently undergoing a revision aimed at one key goal: fewer data points, reduced redundancies, and greater clarity for companies.

The new exposure drafts show significant simplifications across the governance standard.

G1

G1-1, G1-2, G1-3 were critically reviewed and either removed (G1-3 in its previous form) or reorganized in line with the new structure. G1-3 was restructured in particular:

• G1-3, previously ‘Prevention and detection of corruption and bribery,’ has been deleted to reduce detailed requirements for narrative disclosures (disclosure requirements have been partially moved to ESRS 2, NMIG or other paragraphs in G1).

• G1-3 has now been changed to ‘Targets related to business conduct’ to ensure consistency with other topic standards.

  
  

Disclosures on key figures in G1-4, G1-5, G1-6 remained largely unchanged, simplified in some places or moved to NMIG.

*NMIG = non mandatory implementation guidance

Conclusion

The ESRS Exposure Drafts 2025 make one thing clear: less is more. Companies will benefit from simplified disclosure requirements, clearer structures, and fewer data points, while gaining flexibility in choosing what to report. At the same time, this may reduce comparability and transparency.

The takeaway for companies: focus on material topics, ensure thorough documentation, and start preparing for the new standards early.