The EU is preparing the first major simplification of the Corporate Sustainability Reporting Directive (CSRD). On 3 December 2025, EFRAG - the expert group behind the European Sustainability Reporting Standards (ESRS) - submitted a revised and simplified set of standards to the European Commission as part of the EU’s Omnibus simplification package.

This is one of the most important updates to CSRD so far and signals a clear shift toward more practical and usable reporting.

The aim is straightforward:

Cut complexity. Keep ambition. Make reporting usable.

Below is an overview of what’s changing, why it matters, and what it means for real estate companies that buy, own, develop, or manage property.

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Why the EU Is Simplifying CSRD

Since CSRD came into force, many real estate owners have struggled with:

• heavy reporting requirements
• unclear materiality expectations
• duplicated disclosures
• complex links between ESRS and the EU Taxonomy

The European Commission has now acted on this feedback.

EFRAG’s revised standards aim to reduce the burden - especially for companies with simpler structures or low sustainability risk - while still ensuring consistent, high-quality information for investors and lenders.

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What EFRAG Proposes: The Most Important Changes

1. A simpler ESRS structure

EFRAG proposes to streamline the standards by:

• merging overlapping requirements
• reducing unnecessary datapoints
• removing double reporting
• clarifying definitions and expectations

This makes it easier to understand what you actually need to disclose - and why.

2. A stronger focus on materiality

The revision puts materiality at the center.

If a topic is not material for your real estate portfolio, you should not have to report on it.

For real estate companies, this means:

• clearer decisions on what to include
• fewer generic disclosures
• more room to focus on the risks and opportunities that matter for asset value

Many companies have been reporting too much “just in case.” EFRAG is trying to fix that.

3. Climate reporting stays strong - but becomes clearer

Climate will remain the most important topic for real estate.

But EFRAG proposes to make climate disclosure:

• simpler to navigate
• easier to understand
• less repetitive

This includes clearer guidance on:

• physical climate risks (floods, landslides, heat, storms)
• transition risks (building energy standards, regulatory changes)
• climate opportunities (renovation, energy upgrades, low-carbon buildings)
• transition plans

Real estate owners will still need credible climate data - but the reporting framework becomes more user-friendly.

4. Less pressure on SMEs in development and real estate management

EFRAG has introduced:

• a voluntary ESRS for SMEs
• a simplified “SME-lite” version

Many development companies, property managers, and special-purpose vehicles (SPVs) fall in or near this category.

The new standard:

• reduces the need for bespoke ESG questionnaires
• aligns core disclosures with what investors and banks actually need
• lowers the compliance burden for smaller players

This is big - especially for companies involved in transactions and refinancing.

5. Better alignment with global frameworks

EFRAG also aims to align ESRS more closely with:

• ISSB (IFRS S1 and S2)
• GRI

For real estate investors with international portfolios, this reduces duplication and helps centralise reporting workstreams.

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What This Means for Real Estate Owners, Developers, and Investors

Clearer expectations for reporting

You will get simpler, more predictable rules - making it easier to create a stable annual reporting process.

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Less time spent on regulatory interpretation

Fewer datapoints and better structure means less legal and technical uncertainty.

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More focus on asset-level climate risks

CSRD will still demand strong climate-related insight, especially for:

• energy performance
• flood and landslide risk
• transition plans for older buildings
• exposure to upcoming regulations

But it will be easier to show what is material - and why.

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Better data flow to banks and investors

Banks have been asking for more consistent ESG data to support lending decisions.

With the new SME standard and simplified climate disclosures, the quality and consistency of data in the real estate sector should improve.

This aligns directly with what we hear from Norwegian banks through The Hubble and our upcoming pieces with Finance Norway.

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A Step Toward Reporting That Supports Real Decisions

EFRAG’s updated standards are designed to make sustainability reporting something companies can use - not just produce.

For real estate companies, this means:

• clearer expectations
• more relevant disclosures
• easier conversations with investors and lenders
• reporting that supports real decisions about value and risk

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What We See at Telescope

Across our work in real estate - from property-level climate assessments to large portfolio reviews - the trend is unmistakable:

Companies want to comply.

But they need simpler rules, clearer expectations, and tools that make climate risk analysis practical.

The revised ESRS points in exactly that direction.

Telescope helps real estate owners, developers, and investors:

• understand physical and transition risks
• document climate exposure clearly
• structure insights in a CSRD-friendly way
• connect asset data to EU Taxonomy expectations

When reporting becomes simpler, the importance of reliable climate data becomes even clearer. That’s where strong, decision-ready insight gives you an edge.

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