German CFOs want clear, practicable and internationally compatible EU standards for sustainability reporting. This is shown by the study "ESG reporting: What German CFOs have to say" published today by Deutsches Aktieninstitut and the auditing firm EY. The European standards pose considerable challenges for companies and many CFOs do not see them as sufficiently conducive to transformation.

"The Omnibus I process offers a unique opportunity to turn sustainability reporting into an effective lever for transformation. Our study provides an up-to-date and comprehensive picture of the opinions of German CFOs and shows, among other things, where there is a concrete need for improvement in the European Sustainability Reporting Standards (ESRS)," explains Henriette Peucker, Chief Executive and Member of the Board of Deutsches Aktieninstitut.

The study is based on a survey of the 160 CFOs of DAX, MDAX and SDAX companies, which was conducted in February 2025. It is divided into four parts: Responsibilities and current implementation, practical challenges and benefits of Environment, Social and Governance (ESG) reporting as well as key proposals for the revision of the ESRS and how European sustainability regulation is impacting the transformation of companies.   

"Around half of the companies took part in the survey. This shows the urgency and commitment of CFOs to this topic. It is therefore essential that the EU Commission swiftly finalises its efforts to substantially simplify the ESRS," emphasises Jan Brorhilker, Managing Partner Assurance at EY.

The most important study results:

• 90 per cent of companies describe the implementation of ESRS as difficult because they are complex. Collecting the data ties up considerable resources due to its granularity, with no added value for operational or strategic decisions.
• 98 per cent of the participating companies criticise the unclear interpretation of the requirements.
• The participants collect a median of 364 data points in the areas of environment, social affairs and governance for their ESG reports. However, only 25 of these data points are relevant for management purposes.
• 63 per cent of the participating companies see the current ESG regulations as a brake on transformation. They criticise the fact that they are forced to invest too much energy in administration and thus lose time for the implementation of sustainability.

In order to make European sustainability reporting more efficient and increase the acceptance of ESG regulation, Deutsches Aktieninstitut proposes the following adjustments:

Significantly reduce data points

The survey participants call for a massive reduction in ESRS data points. They suggest deleting redundant information that is not useful for decision-making. The aim must also be to make the standards clearer and easier to understand. The focus should be on sustainability, not paperwork.

A pragmatic approach to climate reporting

In order to avoid double reporting for internationally active companies, they should be able to use the International Sustainability Standards Board (ISSB) climate standard IFRS S2 instead of the climate standard ESRS E1 for climate-related reporting. European requirements can then be harmonised with this standard to ensure the international competitiveness of European companies.

Making the EU taxonomy more flexible

Although the study did not contain any explicit questions on the EU taxonomy, almost 20 per cent of the companies surveyed commented on the EU taxonomy in the free text fields. They do not consider the provisions of the EU taxonomy to be expedient and note that the EU taxonomy in its current form makes no contribution to corporate financing. In addition, the EU taxonomy does not cover certain business models. The binding nature of the EU taxonomy should therefore be reconsidered.  

Targeted revision of ESG reporting obligations

"I hope that we will quickly achieve clarity and legal certainty regarding the scope and extent of reporting. Otherwise, there is a risk that sustainability reporting will only be perceived as a "bureaucratic issue" – and not as an opportunity for differentiation," says Brorhilker.

"Companies are committed to the goal of sustainable transformation. The task now is to use Omnibus to make regulation fit for purpose, target-orientated and competitive. The extensive ESRS data points need to be significantly reduced. The LSME standard for listed small and medium-sized enterprises with around 650 data points or an even more far-reaching reduction discussed in the European Parliament could be used for this purpose. The abolition of the electronic labelling requirement for sustainability information is also overdue. Now is the time to set the course accordingly," emphasises Peucker in conclusion.

Here you can find the study ESG Reporting: What German CFOs say.

German CFOs want clear, practicable and internationally compatible EU standards for sustainability reporting. This is shown by the study "ESG reporting: What German CFOs have to say" published today by Deutsches Aktieninstitut and the auditing firm EY. The European standards pose considerable challenges for companies and many CFOs do not see them as sufficiently conducive to transformation.

"The Omnibus I process offers a unique opportunity to turn sustainability reporting into an effective lever for transformation. Our study provides an up-to-date and comprehensive picture of the opinions of German CFOs and shows, among other things, where there is a concrete need for improvement in the European Sustainability Reporting Standards (ESRS)," explains Henriette Peucker, Chief Executive and Member of the Board of Deutsches Aktieninstitut.

The study is based on a survey of the 160 CFOs of DAX, MDAX and SDAX companies, which was conducted in February 2025. It is divided into four parts: Responsibilities and current implementation, practical challenges and benefits of Environment, Social and Governance (ESG) reporting as well as key proposals for the revision of the ESRS and how European sustainability regulation is impacting the transformation of companies.   

"Around half of the companies took part in the survey. This shows the urgency and commitment of CFOs to this topic. It is therefore essential that the EU Commission swiftly finalises its efforts to substantially simplify the ESRS," emphasises Jan Brorhilker, Managing Partner Assurance at EY.

The most important study results:

• 90 per cent of companies describe the implementation of ESRS as difficult because they are complex. Collecting the data ties up considerable resources due to its granularity, with no added value for operational or strategic decisions.
• 98 per cent of the participating companies criticise the unclear interpretation of the requirements.
• The participants collect a median of 364 data points in the areas of environment, social affairs and governance for their ESG reports. However, only 25 of these data points are relevant for management purposes.
• 63 per cent of the participating companies see the current ESG regulations as a brake on transformation. They criticise the fact that they are forced to invest too much energy in administration and thus lose time for the implementation of sustainability.

In order to make European sustainability reporting more efficient and increase the acceptance of ESG regulation, Deutsches Aktieninstitut proposes the following adjustments:

Significantly reduce data points

The survey participants call for a massive reduction in ESRS data points. They suggest deleting redundant information that is not useful for decision-making. The aim must also be to make the standards clearer and easier to understand. The focus should be on sustainability, not paperwork.

A pragmatic approach to climate reporting

In order to avoid double reporting for internationally active companies, they should be able to use the International Sustainability Standards Board (ISSB) climate standard IFRS S2 instead of the climate standard ESRS E1 for climate-related reporting. European requirements can then be harmonised with this standard to ensure the international competitiveness of European companies.

Making the EU taxonomy more flexible

Although the study did not contain any explicit questions on the EU taxonomy, almost 20 per cent of the companies surveyed commented on the EU taxonomy in the free text fields. They do not consider the provisions of the EU taxonomy to be expedient and note that the EU taxonomy in its current form makes no contribution to corporate financing. In addition, the EU taxonomy does not cover certain business models. The binding nature of the EU taxonomy should therefore be reconsidered.  

Targeted revision of ESG reporting obligations

"I hope that we will quickly achieve clarity and legal certainty regarding the scope and extent of reporting. Otherwise, there is a risk that sustainability reporting will only be perceived as a "bureaucratic issue" – and not as an opportunity for differentiation," says Brorhilker.

"Companies are committed to the goal of sustainable transformation. The task now is to use Omnibus to make regulation fit for purpose, target-orientated and competitive. The extensive ESRS data points need to be significantly reduced. The LSME standard for listed small and medium-sized enterprises with around 650 data points or an even more far-reaching reduction discussed in the European Parliament could be used for this purpose. The abolition of the electronic labelling requirement for sustainability information is also overdue. Now is the time to set the course accordingly," emphasises Peucker in conclusion.

Here you can find the study ESG Reporting: What German CFOs say.

German CFOs want clear, practicable and internationally compatible EU standards for sustainability reporting. This is shown by the study "ESG reporting: What German CFOs have to say" published today by Deutsches Aktieninstitut and the auditing firm EY. The European standards pose considerable challenges for companies and many CFOs do not see them as sufficiently conducive to transformation.

"The Omnibus I process offers a unique opportunity to turn sustainability reporting into an effective lever for transformation. Our study provides an up-to-date and comprehensive picture of the opinions of German CFOs and shows, among other things, where there is a concrete need for improvement in the European Sustainability Reporting Standards (ESRS)," explains Henriette Peucker, Chief Executive and Member of the Board of Deutsches Aktieninstitut.

The study is based on a survey of the 160 CFOs of DAX, MDAX and SDAX companies, which was conducted in February 2025. It is divided into four parts: Responsibilities and current implementation, practical challenges and benefits of Environment, Social and Governance (ESG) reporting as well as key proposals for the revision of the ESRS and how European sustainability regulation is impacting the transformation of companies.   

"Around half of the companies took part in the survey. This shows the urgency and commitment of CFOs to this topic. It is therefore essential that the EU Commission swiftly finalises its efforts to substantially simplify the ESRS," emphasises Jan Brorhilker, Managing Partner Assurance at EY.

The most important study results:

• 90 per cent of companies describe the implementation of ESRS as difficult because they are complex. Collecting the data ties up considerable resources due to its granularity, with no added value for operational or strategic decisions.
• 98 per cent of the participating companies criticise the unclear interpretation of the requirements.
• The participants collect a median of 364 data points in the areas of environment, social affairs and governance for their ESG reports. However, only 25 of these data points are relevant for management purposes.
• 63 per cent of the participating companies see the current ESG regulations as a brake on transformation. They criticise the fact that they are forced to invest too much energy in administration and thus lose time for the implementation of sustainability.

In order to make European sustainability reporting more efficient and increase the acceptance of ESG regulation, Deutsches Aktieninstitut proposes the following adjustments:

Significantly reduce data points

The survey participants call for a massive reduction in ESRS data points. They suggest deleting redundant information that is not useful for decision-making. The aim must also be to make the standards clearer and easier to understand. The focus should be on sustainability, not paperwork.

A pragmatic approach to climate reporting

In order to avoid double reporting for internationally active companies, they should be able to use the International Sustainability Standards Board (ISSB) climate standard IFRS S2 instead of the climate standard ESRS E1 for climate-related reporting. European requirements can then be harmonised with this standard to ensure the international competitiveness of European companies.

Making the EU taxonomy more flexible

Although the study did not contain any explicit questions on the EU taxonomy, almost 20 per cent of the companies surveyed commented on the EU taxonomy in the free text fields. They do not consider the provisions of the EU taxonomy to be expedient and note that the EU taxonomy in its current form makes no contribution to corporate financing. In addition, the EU taxonomy does not cover certain business models. The binding nature of the EU taxonomy should therefore be reconsidered.  

Targeted revision of ESG reporting obligations

"I hope that we will quickly achieve clarity and legal certainty regarding the scope and extent of reporting. Otherwise, there is a risk that sustainability reporting will only be perceived as a "bureaucratic issue" – and not as an opportunity for differentiation," says Brorhilker.

"Companies are committed to the goal of sustainable transformation. The task now is to use Omnibus to make regulation fit for purpose, target-orientated and competitive. The extensive ESRS data points need to be significantly reduced. The LSME standard for listed small and medium-sized enterprises with around 650 data points or an even more far-reaching reduction discussed in the European Parliament could be used for this purpose. The abolition of the electronic labelling requirement for sustainability information is also overdue. Now is the time to set the course accordingly," emphasises Peucker in conclusion.

Here you can find the study ESG Reporting: What German CFOs say.