EFRAG is asked to prioritize implementation support for the first set of ESRS by the European Commission
On March 29, 2023, the European Commission urged the European Financial Reporting Advisory Group (EFRAG) to prioritize supporting implementing the first set of European Single Reporting Standards (ESRS) rather than focusing on preparatory work for sector-specific standards. This is to avoid overlapping consultations and reduce the burden on stakeholders who wish to contribute to the sustainability agenda.
EFRAG is adjusting its work plan accordingly while working on sector-specific standards and standards for small and medium-sized enterprises (SMEs) under a modified timetable. As the technical adviser to the European Commission for developing a draft ESRS under the Corporate Sustainability Reporting Directive (CSRD), EFRAG acknowledges the need to translate the legal and regulatory framework into practical success and recognizes the challenges faced by stakeholders.
As a result, EFRAG is considering establishing an ESRS implementation support function as a high priority, which could include providing guidance, creating a comprehensive documentation hub, and facilitating educational initiatives. EFRAG is increasing its staff and allocating additional resources to these essential tasks and is also working on digitalizing the first set of ESRS. While SMEs and sector-specific standards remain on EFRAG's agenda as key tasks, the organization is mindful of avoiding overlapping consultations and prioritizing implementation support. EFRAG has made progress on the first draft sector standards, the draft standard for listed SMEs, and the draft sector classification standard.
EFRAG is committed to building on and contributing to the global progress of sustainability reporting, including through ongoing dialogue with the International Sustainability Standards Board (ISSB) and cooperation with the Global Reporting Initiative (GRI). EFRAG hopes that interoperability will be achieved so that EU companies applying the first set of ESRS will not face multiple reporting requirements.
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