What’s Next for ESRS? EFRAG Insights for ESG Professionals
How the 2025 State of Play Report reshapes double materiality
A new chapter in ESG reporting is unfolding
If you’re working in sustainability or ESG reporting, the question is no longer “Should I learn the ESRS?” but rather, “How fast can I catch up?”
In July 2025, the European Financial Reporting Advisory Group (EFRAG) released its State of Play Report, offering key insights into the implementation of the European Sustainability Reporting Standards (ESRS). This update is essential reading for ESG professionals, not just in Europe but globally, given how the Corporate Sustainability Reporting Directive (CSRD) is transforming how over 50,000 companies report non-financial information.
Let’s break down what the report reveals—and what skills you need to stay ahead.
Key Takeaways from EFRAG’s 2025 Report
EFRAG’s findings paint a picture of rapid evolution. While many companies have made substantial progress in preparing their ESRS-aligned disclosures, compliance gaps remain widespread.
Highlights include:
- Over 40% of companies still lack a robust double materiality assessment.
- Fewer than 30% have fully aligned their governance and risk disclosures with ESRS 2.
- A majority are struggling to integrate sector-specific requirements, which will be mandatory starting 2026.
Most notably, the report underscores that non-EU companies operating in the EU market are not exempt. If your company generates more than €150 million in EU revenues and has a branch or subsidiary in the region, you’re required to comply.
For ESG professionals, this means understanding ESRS isn’t just about policy—it’s about career relevance and global competitiveness.
The Central Role of Double Materiality
If there’s one concept driving the ESRS framework, it’s double materiality.
Under the CSRD, companies must disclose:
- Impact materiality: how the company affects people and the planet
- Financial materiality: how sustainability issues affect the company’s performance
This dual lens goes far beyond traditional materiality assessments like those used in GRI or SASB. According to EFRAG’s report, many companies continue to underestimate the complexity of performing a robust double materiality analysis.
Yet getting this step right is foundational. Why? Because it determines:
✅ Which disclosures you must include
✅ How you prioritize risks and opportunities
✅ What audit and assurance standards apply
Mastering this framework is essential for ESG analysts, sustainability officers, consultants, and CFOs alike.
ESRS in Context: SASB, GRI, and IFRS
For professionals already familiar with other ESG standards, such as:
- GRI (Global Reporting Initiative)
- SASB (Sustainability Accounting Standards Board)
- IFRS S1/S2 (by the ISSB)
…it’s important to understand how the ESRS aligns and differs.
The ESRS incorporates many elements of GRI, especially on impact materiality and stakeholder inclusiveness. However, it diverges from SASB’s investor-centric approach, which emphasizes financial materiality alone.
In short:
- GRI ↔ ESRS: Strong alignment, especially for social and environmental disclosures
- SASB ↔ ESRS: Less overlap, though still complementary for sector-specific reporting
- IFRS ↔ ESRS: Convergence in climate-related disclosures, diverging on social/governance
For this reason, cross-standard fluency is becoming a major skillset—particularly for consultants and reporting managers who work across borders.
Why You Need Formal Training on ESRS and SASB
Given the complexity of today’s reporting landscape, self-learning isn’t enough.
The Certified ESG Reporting Specialist (ESRS, GRI, SASB) training is tailored for professionals who need a working command of multiple standards and how they interact with CSRD requirements.
This course teaches you how to:
- Conduct a double materiality assessment
- Align disclosures with ESRS 1–2 and topical standards
- Map ESRS requirements to existing GRI or SASB reports
- Understand assurance and audit expectations
Meanwhile, the Online Certificate on SASB & TCFD Reporting helps ESG practitioners strengthen their ability to connect sustainability strategy with financial impact—something increasingly expected by boards and investors.
Both courses are designed for:
- ESG and sustainability professionals
- Reporting officers and accountants
- Compliance managers
- Consultants and in-house legal teams
They offer practical exercises, real examples, and updates based on 2025 regulations, so you’re not just learning the theory—you’re applying it right away.
What’s Coming in 2026 and Beyond
According to the EFRAG report, here’s what companies and ESG professionals should prepare for:
- Sector-specific standards will become mandatory in 2026 (e.g., for agriculture, energy, finance)
- SMEs and listed small enterprises will be phased into CSRD starting in 2026–2028
- Assurance of sustainability reports (limited then reasonable assurance) will become standard
- Digital tagging (XBRL) will be required for all ESRS reports submitted to the EU database
For ESG professionals, this means that technical literacy, audit readiness, and cross-framework knowledge will define career success in the coming years.
Final Thoughts: The Future Is Integrated Reporting
ESRS isn’t just about ticking boxes. It represents a shift toward integrated thinking—where sustainability, risk, finance, and governance are seen as interconnected.
Professionals who can bridge these worlds will be in demand. Those who ignore ESRS are likely to find themselves left behind.
By investing in certifications like:
…you’ll be better prepared to:
✅ Lead ESG compliance in your organization
✅ Guide clients through materiality assessments
✅ Align reporting with stakeholder and regulatory expectations
✅ Speak both “sustainability” and “finance” fluently
Certified ESG Reporting Specialist (ESRS, GRI, SASB):
- Includes case studies from EU-listed firms
- Updated for CSRD/ESRS 2025
- Flexible online learning with downloadable materials
- Ideal for professionals preparing for audit-aligned sustainability reporting
Online Certificate on SASB & TCFD Reporting:
- Teaches how to connect climate risk with financial impact
- Includes sample SASB sector reports
- Covers investor expectations and TCFD governance practices
- Suitable for CFOs, investor relations, and ESG risk teams