EU advisor looks to cut sustainability reporting data points by 50% or more
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The European Financial Reporting Advisory Group (EFRAG) said June 20 it is aiming for a 50% reduction in the number of data points required by the European Sustainability Reporting Standards (ESRS).
EFRAG is the European Commission’s technical advisor in charge of developing corporate reporting standards for the bloc. The ESRS are the standards used by companies subject to the Corporate Sustainability Reporting Directive (CSRD).
The Commission asked EFRAG to revise the standards as part of its omnibus proposal to simplify sustainability regulations. In a progress report, EFRAG said it is focusing on six aspects of the reporting standards to meet the omnibus proposal’s goal of reducing the reporting burden on European companies. One of the major changes will be a simplification of the double materiality assessment, which considers a company’s impact both in terms of internal value creation and from the perspective of its external impact on the environment and society.
EFRAG also said it aims to improve the conciseness of sustainability statements; make the standards easier to understand; suggest other ways of reducing the administrative burden for companies; and enhance interoperability with other sustainability reporting standards.
EFRAG has undertaken a consultation on potential revisions to the ESRS and is scheduled to present the revised standards to the Commission by Oct. 31. In its report, it asked the Commission to delay the deadline so it could be “be in a position to offer more time and comfort for stakeholders to provide meaningful feedback.”
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All Things Sustainable Podcast
Connecting the dots between climate science and financial decisions In this episode of the All Things Sustainable podcast, we bring you highlights of the inaugural S&P Global Sustainable1 Climate Summit hosted by the S&P Global Climate Center of Excellence. The event convened climate scientists alongside financial institutions and industry leaders to discuss how climate science can inform investment and financial decision-making. We hear from three speakers at the conference who explain how businesses sync their climate strategies with their financial decisions. >>Listen on Spotify, Apple Podcasts or YouTube
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