ESMA responds to EFRAG consultation on revised ESRS
The European Securities and Markets Authority (ESMA) has published its response to the European Financial Reporting Advisory Group’s (EFRAG) consultation on the Exposure Draft for revised European Sustainability Reporting Standards (ESRS). ESMA supports the objectives of simplification but expresses concerns regarding several aspects of the draft. These include the proposed dual materiality definitions, the transition from reporting impacts, risks and opportunities to sustainability topics, and the introduction of unlimited reliefs, which may ultimately discourage improvements in disclosure quality.