Accountancy Europe shares views on EFRAG’s amended ESRS, highlighting simplification, global alignment, and better transparency
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Yesterday, the European Parliament’s (EP) adopted its negotiating position on the Omnibus proposal with 382 votes in favour, 249 votes against and 13 abstentions. The EP will start the negotiations with the Council on 18 November, still aiming to reach a final agreement by the end of 2025.
We are sharing below a quick overview of the adopted amendments (this is not an exhaustive overview).
Corporate Sustainability Reporting Directive (CSRD):
Corporate Sustainability Due Diligence Directive (CSDDD):
This vote follows the EP’s October plenary session, where MEPs rejected the Legal Affairs (JURI) Committee mandate to enter trilogues. As a result, MEPs from all political groups were able to table new amendments to the Omnibus proposal by 5 November, which were subsequently voted on during the mini-plenary session on 13 November.
EU environment ministers agreed on the Council’s general approach to a binding 2040 climate target of a 90% net reduction in greenhouse gas emissions under the European Climate Law. The Council highlighted that high-quality international credits could contribute to up to 5% in emission reductions. This milestone sets a long-term path towards climate neutrality by 2050, ensuring competitiveness and energy security.
Meanwhile, on 13 November, the EP in plenary session adopted the Environment, Climate and Food Safety (ENVI) report on the binding 2040 climate target and the referral back to the committee for interinstitutional negotiations.
Also, the Council approved the EU’s post-2030 Nationally Determined Contribution (NDC) for submission to the United Nations Framework Convention on Climate Change (UNFCCC). They establish an indicative 2035 reduction of 66.25–72.5%, bridging the 2030 target of 55% and the 2040 target.
Together, all these measures signal the EU’s commitment to the Paris Agreement and global climate action in view of COP30.
EU leaders met to set the EU Council’s priorities for the months ahead. Among others, their conclusions on sustainability:
Several EU leaders submitted a letter urging the President of the European Council, António Costa, to restore Europe’s competitiveness by simplifying EU regulation, calling for:
On sustainability, leaders urged to:
They proposed to organise a special meeting of the European Council in February 2026 to review the work done and provide political guidance on competitiveness.
EU Member States (MS) are increasingly opposing the planned entry into force of the EU Deforestation Regulation (EUDR) on 30 December 2025. On 27 October, agriculture ministers urged the European Commission (EC) to grant a one-year delay, citing implementation challenges, while the EC stressed the need for urgent agreement with the Council and the EP.
At a 29 October Coreper meeting, a large majority of MS rejected the regulation in its current form, calling for postponement and further simplification. Some supported a “stop-the-clock” to allow more time for assessment, while others favoured limited adjustments. Twenty-six European industry groups also urged a pause, warning that current simplification measures were insufficient and immediate compliance “unrealistic and unacceptable.”
At the Environment Council on 4 November, a broad coalition backed Austria’s call for a one-year delay and additional simplification measures, including targeted risk-based implementation, exemptions for low-risk areas, and reduced administrative burdens, citing IT system challenges and legal uncertainty.
Commissioner Jessika Roswall emphasised that the EC’s proposal already provides significant exemptions and stressed the need for rapid Council agreement before the EP negotiations.
On 13 November, the EP decided to use the urgency procedure to simplify the EU deforestation law. MEPs will vote on the content of the file during the 24-27 November plenary session in Strasbourg.
The Berlin Declaration, endorsed by 17 EU Ministers of Industry, sets out a joint commitment to strengthen the European industry while accelerating decarbonisation. Key sustainability actions emphasised include:
Overall, the declaration stresses the importance of simplified regulations, digitalisation, and flexible compliance. This would support low-carbon innovation, reduce emissions across value chains, and ensure Europe’s industrial sector remains competitive.
The European Banking Authority (EBA) guidelines aim to strengthen institutions’ ability to use forward-looking approaches to the assessment and management of environmental risks. The guidelines build on two pillars:
Guidelines will be applicable as from 1 January 2027.
The European Securities and Markets Authority (ESMA) published its final report on the draft Regulatory Technical Standards (RTS) and Implementing Technical Standards (ITS) under the European Green Bond Regulation (EuGB). ESMA is responsible for the registration and supervision of EU green bonds external reviewers.
The standards cover criteria for external reviewers regime on:
ESMA submitted the revised draft RTS and ITS to the EC for adoption via delegated and implementing regulations.
ESMA published its 2025 European Common Enforcement Priorities (ECEP) which also covers sustainability statements, specifically:
Also, ESMA clarified that the amended ESRS will only be applicable after they are published in the EU Official Journal. Therefore, issuers should not rely on these contents when preparing their upcoming sustainability statements.
ESMA published a consolidated document outlining questions and answers on the Sustainable Finance Disclosure Regulation (SFDR) and its Delegated Regulation.
The document brings together the EC’s and the European Supervisory Authorities (ESAs) responses to key interpretative and practical issues, including scope, definitions of sustainable investment, and Taxonomy-aligned disclosures. It aims to clarify existing legal provisions without introducing new requirements.
More than 135 European businesses and investors sent a letter calling on EU policymakers to secure Europe’s competitiveness and technological leadership through the Clean Industrial Deal (CID). Signatories from 18 countries urged the EU to align climate ambition with industrial renewal, innovation, and strategic investments. They emphasised the need for stable regulation and targeted reforms. Among their priorities:
The International Auditing and Assurance Standards Board (IAASB) released new FAQs to support the adoption of ISSA 5000, General Requirements for Sustainability Assurance Engagements. The FAQs explain the standard’s relevance to assurance engagements under the EU’s CSRD, as well as EU-specific considerations such as double materiality, scalability, and interoperability, helping stakeholders prepare for ISSA 5000’s effective date in December 2026.
The International Organisation of Securities Commissions’ (IOSCO) Sustainable Finance Taskforce report assessed environmental, social and governance (ESG) benchmarks, comparing them with traditional financial indices. ESG benchmarks incorporate ESG factors to guide investment and measure ESG risk or impact. While IOSCO’s Principles for Financial Benchmarks broadly apply, ESG data’s qualitative and evolving nature requires tailored oversight. According to the report’s findings:
The Organisation for Economic Co-operation and Development (OECD)’s Global Corporate Sustainability Report 2025 shows global progress in integrating environmental and social goals into corporate strategies and governance. Key figures include:
The report calls for greater alignment across disclosure frameworks, stronger leadership from state-owned enterprises, and improved bankability of green energy projects. Overall, the findings highlight that sustainability is becoming a key driver of transparency, resilience, and long-term value creation.
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