The EU regulator of securities markets (European Securities and Markets Authority, ESMA) provided comments on the first draft of European Sustainability Reporting Standards (ESRS). The comments were submitted during public consultation of the European Financial Reporting Advisory Group (EFRAG), which ran until 8 August 2022.

Work is now underway on changes in sustainability reporting under the CSRD (Corporate Sustainability Reporting Directive) and the preliminary version of the ESRS. The purpose is to ensure sustainability reporting which is reliable, comparable and understandable.

ESMA encouraged further cooperation with the International Sustainability Standards Board to ensure better alignment of the ESRS and the IFRS. This will benefit both users of sustainability reports and the companies that prepare the reports.

EFRAG is now expected to deliver the final draft of the ESRS to the European Commission in November 2022. In accordance with the CSRD, ESMA will deliver an opinion to the European Commission on that version of the ESRS.

Source: https://www.esma.europa.eu/press-news/esma-news/esma-provides-comments-first-draft-european-sustainability-reporting-standards