ESRS Fully Integrated into European Legal Framework, EFRAG Commends Milestone

The European Commission has successfully integrated the first set of twelve sector-agnostic European Sustainability Reporting Standards (ESRS) into the European legal framework, marking a significant milestone in the establishment of a robust sustainability reporting framework in the European Union.

The co-legislators’ scrutiny period, which ended on October 21, 2023, saw no objections to the ESRS Delegated Act. EFRAG (European Financial Reporting Advisory Group) has been actively involved in this process since September 2020 and views this integration as a significant step forward in enhancing the quality of sustainability reporting both within the European Union and globally. In light of this achievement, EFRAG is committed to providing support for the successful implementation of the sector-agnostic ESRS. In the coming weeks, EFRAG will release implementation guidance for public feedback on key topics such as materiality assessment, value chain, and data points overview for gap analysis.
Additionally, EFRAG is launching a Q&A platform to facilitate meaningful dialogue with stakeholders, assisting them in the implementation process and fostering a better understanding of ESRS.

Furthermore, EFRAG is making progress in developing Exposure Drafts for SME standards, scheduled for consultation in January 2024, and continues its work on sector-specific standards.