EFRAG Proposes Revised Sustainability Standards

The European Financial Reporting Advisory Group (EFRAG) has published proposed revisions to its December 2023 European Sustainability Reporting Standards (ESRSs). While the fundamental architecture of the ESRSs would be retained, the standards would be significantly simplified in an effort to make them more readable, concise, and accessible. Key proposed changes include:

• Simplifying the mandatory application guidance and general disclosure requirements.
• Eliminating most optional disclosure requirements or moving them to a separate nonmandatory implementation guidance section.
• Improving flexibility related to how the information is presented, placing greater emphasis on how an entity manages its sustainability impacts, risks, and opportunities.
• Emphasizing materiality of information as an overarching principle.
• Enhancing the interaction of the ESRSs with the standards of the International Sustainability Standards Board.

For more information, see the press release on EFRAG’s Web site as well as Deloitte’s iGAAP in Focus newsletter.