The new ESRS standards (EFRAG Exposure Drafts Set 1) significantly reduce the reporting burden for SMEs – a full 68% fewer mandatory data points. This saves time, costs, and resources. Instead of covering all possible topics, you can focus on the truly relevant points. A simplified materiality analysis and clearer guidelines make implementation much more manageable.
The key benefits for you:
These changes not only make it easier to meet CSRD requirements but also create space for targeted sustainability strategies. Now is the ideal time to adapt your processes and make optimal use of the new standards.
The revised ESRS standards bring tangible relief for German SMEs in sustainability reporting. The reforms create a more efficient and clearer reporting environment. Here are the key adjustments at a glance:
The new regulations focus on significant streamlining: Instead of comprehensive collection of all possible data, only core data is now at the center. There is a clear distinction between essential and additional information. Companies only need to report on topics that are actually present and implemented in their organization. Areas without concrete guidelines are excluded from reporting obligations.
Another advantage: Within a topic area, companies can specifically select relevant information instead of considering all data points of a standard. Reporting will now focus on governance, implemented measures, and measurable results. Planned but not yet realized initiatives remain excluded.
A central step in relieving SMEs is the revision of the materiality analysis. This is now derived directly from the business model. For example: A logistics company no longer needs to elaborate extensively on why climate change is relevant to its business – this connection is obvious.
The introduction of a burden of proof reversal further simplifies the process. Companies now only need to justify why an obviously relevant topic is not material. This saves time and significantly reduces analysis effort.
Additionally, the thresholds for materiality assessment have been clarified. Instead of subjective assessments, clear, quantitative criteria are now used. This ensures more consistent and better traceable results.
The new standards place great emphasis on a user-friendly structure. An optional executive summary provides stakeholders with a quick overview, while detailed information can be provided in appendices.
The modular reporting structure enables SMEs to create their reports step by step. Important topics can be addressed first, while less urgent points can be added later.
Additionally, standardized templates and examples are available, providing companies with clear guidance. Instead of laboriously interpreting abstract requirements, they can orient themselves to proven patterns.
Another advantage: The harmonization with existing frameworks such as the EU Taxonomy reduces duplicate work. Data already collected for other compliance requirements can flow directly into ESRS reporting. This makes the entire process significantly more efficient and practical for SMEs.
After examining the key changes, the question arises of how SMEs can practically implement the new standards. The simplified ESRS implementation requires targeted adaptation of internal processes to proceed efficiently and purposefully.
The first step is adapting existing data collection processes to the new requirements. Instead of extensive and often redundant data collections, the focus is now on the truly relevant core data points. Review your ESG data sources and remove superfluous information to increase efficiency.
Another important point: Link different data streams to avoid duplicate entries. Many SMEs already collect sustainability data, whether for the EU Taxonomy or internal environmental management systems. This existing data can flow directly into ESRS reporting, minimizing additional effort.
An advantage of the new standards is that reporting is only required on already implemented measures. Planned but not yet realized initiatives can remain excluded. With modular systems, you can set priorities and gradually improve data quality.
The simplified double materiality analysis occurs in three phases:
This structured approach helps focus on the topics that are most important for the company and its stakeholders.
The revised ESRS standards offer SMEs more flexibility to reduce reporting effort and improve communication with stakeholders. An optional executive summary allows you to compactly summarize key findings, while detailed information can be provided in appendices.
Focus initially on the most important topics and add less urgent aspects later. Templates can help avoid interpretation gaps and maintain consistency.
Topic-specific reporting focuses on relevant information and creates a solid foundation for a future-oriented ESG strategy. With these measures, you can efficiently implement the new standards while advancing your sustainability goals.
The adjustments to the ESRS standards bring numerous benefits for German SMEs. With the 68% reduction in reporting obligations, new opportunities emerge that go far beyond mere compliance with regulations. The revised standards not only create capacity for strategic sustainability projects but also improve internal processes.
The simplified ESRS standards lead to noticeable savings in time and costs. Initial feedback from practice shows that companies could need up to 40% less time for creating their sustainability reports. This gained time can flow specifically into other important business areas.
Another advantage lies in more efficient data collection. Instead of getting lost in extensive documentation, companies can focus on truly relevant information. The ability to move detailed information to appendices additionally reduces administrative effort.
The new top-down method in materiality analysis also saves time by dispensing with complex bottom-up approaches.
The clearer structure of the new standards makes it easier for SMEs to develop a well-thought-out and effective sustainability strategy. The separation between mandatory and voluntary disclosures enables targeted allocation of resources to topics relevant to their own business model.
This puts the integration of ESG aspects at the center of the business model – sustainability is no longer seen just as a mandatory task, but as an opportunity for long-term value creation. The focus on the so-called PAT principle (Policies, Actions, Targets) helps companies set realistic goals and systematically pursue them.
The simplifications of the ESRS standards also have a positive impact on communication – both internally and externally. Shorter, more concise reports make it easier for investors, customers, and other stakeholders to quickly understand and evaluate the information provided.
This improved comprehensibility strengthens stakeholder trust and engagement. Investors can better assess ESG risks and opportunities, while customers can more clearly understand sustainability measures.
Additionally, companies that adopt the new standards early position themselves as pioneers. They benefit from better access to sustainable financing sources and are better prepared for future regulatory requirements. Structured reporting helps minimize ESG risks and optimally utilize opportunities.
Fiegenbaum Solutions supports SMEs in effectively utilizing these benefits and developing tailored solutions that meet specific requirements.
Fiegenbaum Solutions supports small and medium-sized enterprises (SMEs) in implementing the simplified ESRS standards in practice while simultaneously developing sustainable strategies for the future. The services are specifically tailored to the requirements of mid-market companies and focus on three central areas where Fiegenbaum Solutions delivers real added value.
Johannes Fiegenbaum and his team offer tailored ESG strategies that are precisely aligned with each company's needs. The focus is on the practical implementation of simplified ESRS standards and the development of data-driven sustainability concepts.
An important approach is the clear prioritization of material ESG topics that can be directly derived from the new ESRS structure. Instead of getting lost in complicated analyses, companies receive concrete recommendations on which areas are truly decisive for their business model.
Additionally, Fiegenbaum Solutions optimizes existing reporting processes so that SMEs can specifically use the 68% reduction in data points to save time and resources. Both legal requirements and entrepreneurial opportunities are considered, so that the new ESRS simplifications can be directly integrated into daily business operations.
Another focus of support lies in conducting Life Cycle Assessments (LCA), which are created for both products and organizations. These analyses are essential for understanding and credibly communicating actual environmental impacts.
Thanks to expertise in CSRD compliance and EU Taxonomy reporting, Fiegenbaum Solutions ensures that companies not only meet current requirements but are also prepared for future challenges. Special focus is placed on the practical collection and evaluation of data.
The consulting also includes the introduction of efficient data collection systems that consider both technical and organizational aspects. In addition to report creation, Fiegenbaum Solutions also supports companies in long-term strategic planning to secure sustainable competitive advantages.
A central component of strategic consulting is the integration of long-term sustainability goals in alignment with the simplified ESRS guidelines. Using scenario analyses and impact modeling, companies can respond early to future requirements and identify new opportunities.
Especially for the German mid-market, Fiegenbaum Solutions offers specialized approaches to climate risk assessment and resilience planning. These go beyond mere compliance and create real competitive advantages.
The development of Net-Zero strategies and decarbonization pathways is closely linked with ESRS reporting requirements. Companies receive not only a clear roadmap for their climate goals but also the tools to transparently communicate their progress.
Through data-driven decision support, SMEs can continuously improve their sustainability strategies while fully exploiting the benefits of simplified ESRS standards. The consulting structure is flexibly designed – whether project-based solutions or long-term retainer models, every company finds the appropriate support.
Building on the previous implementation steps, we want to show you how to concretely integrate the new ESRS requirements into your processes.
The 68% simplification of ESRS offers German SMEs an excellent opportunity to make their sustainability reporting more efficient and targeted. The first step? Conduct a thorough inventory of your current data collection by the end of September 2025. This way, you can determine which information remains relevant under the new requirements.
These steps complement the previously described adaptations of your data systems and materiality analysis.
External support can significantly accelerate the process. Fiegenbaum Solutions, for example, offers tailored consulting packages for technical implementation and strategic realignment. With project-based consulting, you can specifically address the areas where the greatest need for action exists.
The simplification of ESRS is more than just a regulatory adjustment – it's a strategic opportunity. Companies that act now can not only operate more sustainably but also secure a clear competitive advantage. Use this opportunity to achieve your sustainability goals more effectively.
The 68% reduction in reporting obligations opens up opportunities for small and medium-sized enterprises (SMEs) to make their sustainability strategy leaner and more effective. By focusing on truly relevant and central data, companies can not only save time and resources but also increase the meaningfulness and precision of their reports.
With the simplified structure of ESRS 2025, it becomes significantly easier for SMEs to integrate sustainability goals into their business strategy. The result? Strengthened company resilience and potentially increased trust from investors and business partners. This simplification offers you the opportunity to focus specifically on the topics that matter most to your company and stakeholders.
To benefit from the simplified ESRS standards, you as SMEs in Germany should first carefully examine the revised requirements. This way, you can better understand the changes and the significant 68% reduction in data points. The next step is to conduct a inventory of your current data collection systems. This helps identify potential weaknesses or areas with improvement potential.
Based on this analysis, you can specifically adapt your systems – for example, through automation or the integration of new data sources. This allows efficient implementation of reduced reporting obligations. Important: Make sure you fully comply with the new requirements to ensure compliance and facilitate the entire reporting process. Those who act early can not only save resources but also strategically better align sustainability reporting.
The simplified double materiality analysis brings tangible benefits to small and medium-sized enterprises (SMEs). It helps prioritize sustainability topics in a targeted manner, identify risks early, and make strategic planning more effective. This allows companies to fulfill their reporting obligations more easily and with fewer resources.
In practice, the analysis is implemented through structured data evaluation, involvement of relevant stakeholders, and use of simplified ESRS standards. This approach enables SMEs to efficiently manage new requirements while creating sustainable value.