The article discusses ongoing discussions among stakeholders regarding the European Sustainability Reporting Standards (ESRS) and their recent revisions. Some stakeholders argue that the revised and simplified ESRS grants excessive leeway for using exemptions, such as options for deferring certain requirements and the principle of undue cost or effort. They advocate for greater restrictions on these exemptions, particularly concerning data collection from the value chain to ensure complete disclosure of companies' operations.

There has been some success for these stakeholders in their advocacy, as notable changes were made to the ESRS before submission to the European Commission. For instance, a proposal that allowed phase-in periods for first-time adopters of ESG reporting was ultimately removed due to concerns that the existing exemptions were excessive. This shift emphasizes a growing demand for stricter reporting requirements among stakeholders invested in corporate transparency and responsibility.

The implications of these discussions are significant as the evolution of the ESRS standards could impact how companies approach ESG reporting across Europe. Stricter limitations on exemptions could lead to a more uniform and comprehensive standard for sustainability reporting, which proponents believe is crucial for enhancing trust and accountability in environmental, social, and governance matters across the business landscape.