EC tells EFRAG to concentrate on the implementation of Set 1 of the ESRS

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22 Mar 2023

On 22 November 2022, the European Financial Reporting Advisory Group (EFRAG) submitted its first set of draft European Sustainability Reporting Standards (ESRS) to the European Commission (EC) and began working on Set 2 of the ESRS, which would contain sector-specific standards. EFRAG has now been told to concentrate on providing additional guidance on how to apply the proposed standards in Set 1.

In a speech given on 21 March 2023, Commissioner McGuinness explained:

We know that the EU sustainability reporting standards will be challenging for companies. And that's why we're asking EFRAG, who developed the draft standards, if you like, to focus attention on providing additional guidance for companies to apply the first set of horizontal standards. And indeed to free up resources for this very critical task, we have asked EFRAG to prioritise its efforts on that first set of horizontal standards over preparatory work for the sector standards.

She explained that this decision would also avoid having overlapping consultations on the final first set of standards to be proposed by the EC and Set 2 of draft ESRS to be developed by EFRAG:

And we will soon publish the proposed final version of the first set of horizontal standards for a period of public comment. And in my view, prioritising EFRAG's efforts on the first set of standards over preparatory work for the sector standards will avoid overlapping consultations, and ease the burden on all stakeholders wanting to contribute to this busy agenda.

Please click to access the full transcript of Commissioner McGuinness' speech on the EC website.

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