The European Financial Reporting Advisory Group (EFRAG) has launched its 'EFRAG 2025 State of Play' portal, providing analysis of the first 656 European Sustainability Reporting Standards (ESRS) statements issued under the Corporate Sustainability Reporting Directive (CSRD). The portal includes a statistics dashboard and report repository showing only 10% of companies identified all ESRS standards as material, while 55% disclosed climate transition plans. The analysis will inform EFRAG's work on ESRS simplification following the European Commission's March 2025 mandate.

The European Financial Reporting Advisory Group (EFRAG) has published revised Exposure Drafts of the European Sustainability Reporting Standards (ESRS), introducing significant simplifications to the 2023 standards. The revisions include a 57% reduction in mandatory datapoints, a 68% reduction in full disclosures, and a 55% shorter overall length. Changes encompass streamlined double materiality assessment, reduced overlaps across standards, clarified language, and removal of voluntary disclosures. EFRAG will provide final technical advice to the European Commission by 30 November 2025. The public consultation runs from 31 July to 29 September 2025.

The European Financial Reporting Advisory Group (EFRAG) has launched a public consultation on the Exposure Draft of the European Sustainability Reporting Standards for certain non-EU undertakings (ESRS-40a), seeking views on the proposed reporting standard developed as technical advice to the European Commission under Article 40a of the Accounting Directive. The draft standard applies to certain third-country undertakings with significant activities in the EU that meet the reporting thresholds in Article 40a and, for topics other than climate change, proposes that undertakings may in certain circumstances limit reporting to EU-related impacts. EFRAG is inviting stakeholder feedback on the proposed requirements, with responses informing the finalisation of its Technical Advice to the European Commission. The consultation closes on 31 October 2026.

The European Financial Reporting Action Group (EFRAG) has published its XBRL Taxonomy for European Sustainability Reporting Standards (ESRS) Set 1, which enables the digital tagging of ESRS statements. EFRAG has also published the XBRL Taxonomy for Article 8 disclosures that the European Commission requested EFRAG to prepare. The digital taxonomies enable the marking up ('tagging') of sustainability reporting in machine-readable XBRL format. This taxonomy will be the basis for the European Securities and Market Authority (ESMA) to develop regulatory technical standards for tagging the ESRS sustainability statement.

The European Financial Reporting Advisory Group (EFRAG) published a discussion paper that explores the connectivity between financial and sustainability reporting. The paper outlines various concepts, types, and mechanisms for linking reported information and features 17 real-world examples that demonstrate practical connectivity between sustainability disclosures under ESRS or ISSB Standards and financial statements prepared in accordance with IFRS Accounting Standards. Additionally, EFRAG identified current gaps, such as inconsistent terminology and the potential underreporting of sustainability information in financial statement segment disclosures. The consultation period for this paper will close on 30 June 2026.

The European Financial Reporting Advisory Group (EFRAG) has published its final comment letter on the exposure draft of the International Financial Reporting Standards (IFRS) Foundation Due Process Handbook amendments, which were published in December 2024. It expresses support for the IFRS Foundation's initiative to update the Handbook to reflect the creation of the International Sustainability Standards Board (ISSB) and suggests several recommendations. EFRAG also provides feedback on proposed enhancements and clarifications to the Handbook, emphasising the need for improvements in various processes. Additionally, it addresses concerns about the IFRS Interpretations Committee and suggests improvements in the organisation and regulation of its work. EFRAG notes support for extended comment periods where field testing is necessary.

The European Financial Reporting Advisory Group (EFRAG) has published a Progress Report outlining six key levers to simplify the European Sustainability Reporting Standards (ESRS) and reduce the number of mandatory datapoints by over 50%. The measures—developed in response to a 5 May 2025 request from Commissioner Albuquerque—include simplifying the Double Materiality Assessment, improving the clarity and integration of sustainability statements, revising the relationship between Minimum Disclosure Requirements and topical standards, enhancing understandability and accessibility, introducing burden-reduction reliefs, and strengthening interoperability. Approved by the EFRAG Sustainability Reporting Board on 19 June 2025, the report reflects extensive feedback from companies, auditors and stakeholders, and will inform an upcoming exposure draft, with final decisions expected by the end of July 2025.

The European Financial Reporting Advisory Group (EFRAG) has released a study of the early implementation of European Sustainability Reporting Standards (ESRS), which highlights the preliminary practices in selected companies. The study was based on interviews of 28 large EU headquartered undertakings across eight sectors in financial and non-financial ventures. The preliminary practices were examined against four focus areas important to the implementation of ESRS, which include—Materiality assessment, Value Chain, Gap analysis on datapoints and environmental, social, governance reporting organisational approach.

The European Financial Reporting Advisory Group (EFRAG) has launched a call for tender to appoint a service provider to conduct a cost and benefit analysis supporting the development of the European Sustainability Reporting Standards for non-EU companies (N-ESRS), following a request from the European Commission under the Corporate Sustainability Reporting Directive (CSRD) and the January 2025 'Omnibus' simplification proposal. EFRAG said the standards are intended to ensure a level playing field and improve the accountability and transparency of non-EU companies operating in the EU market in relation to their sustainability impacts. The selected contractor will carry out an evidence-based assessment of the expected costs and benefits associated with the draft standards, drawing on stakeholder feedback gathered through consultations, field tests and outreach activities alongside its own research. The work will include a preliminary analysis due in late September 2026 based on the exposure draft expected in July 2026, and a final analysis due by 20 January 2027 based on EFRAG’s technical advice. The tender is open to eligible organisations and consortia established in the European Economic Area and EFTA countries with relevant expertise, with applications due by 18 June 2026.

European Financial Reporting Advisory Group (EFRAG) has published a paper detailing the synergies between the voluntary Eco-Management and Audit Scheme (EMAS) and the mandatory European Sustainability Reporting Standards (ESRS). The document demonstrates how EMAS-registered companies can leverage existing environmental data to fulfil ESRS requirements, potentially reducing duplication of efforts. EFRAG highlights that the EMAS management system can support ESRS environmental reporting, providing a framework for consistent data collection over multiple reporting cycles. This guidance aims to assist large companies subject to ESRS, with first reports due in 2025.

The European Financial Reporting Advisory Group (EFRAG) has submitted its technical advice to the European Commission on draft simplified European Sustainability Reporting Standards (ESRS) on 3 December 2025. The submission forms part of the European Commission's 2025 Omnibus initiative aimed at reducing regulatory burden for companies whilst maintaining Green Deal sustainability objectives. The simplified standards introduce substantial flexibility, reliefs and phasing-in mechanisms, reducing mandatory datapoints by 61% compared to existing requirements. Key simplifications include streamlined materiality assessment procedures, elimination of the preference for direct data collection in value chain reporting, principles-based standards for narrative disclosures, and enhanced interoperability with International Sustainability Standards Board (ISSB) Standards. The European Commission will now prepare a Delegated Act revising the first set of ESRS based on EFRAG's technical advice. EFRAG developed the simplified standards following extensive multi-stakeholder consultation involving over 700 respondents and lessons learnt from 2024 'wave 1' reporters.

The European Financial Reporting Advisory Group (EFRAG) has updated its non-mandatory guidance for the EU Voluntary Sustainability Reporting Standard (VS), following publication of the VS in Commission Delegated Regulation (EU) 2026/1560. The VS provides a voluntary sustainability reporting framework for undertakings with 1,000 employees or fewer and is intended to support proportionate reporting and help smaller undertakings respond to sustainability information requests from larger companies, investors and financial institutions. The Commission has tasked EFRAG with updating and maintaining the guidance that previously formed part of the Commission Recommendation on the voluntary sustainability reporting standard for small and medium-sized undertakings, and EFRAG has published the updated guidance in English through its European Sustainability Reporting Standards (ESRS) Knowledge Hub. EFRAG is working with National Standard Setters on translations, which it says will be available from November 2026.