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EFRAG launched a public consultation on the 12 revised European Sustainability Reporting Standards (ESRS) Exposure Drafts (ED). It invites stakeholders to submit their feedback by 29 September through an online survey.
EFRAG also published the following documents:
In parallel, EFRAG launched a cost–benefit analysis conducted by external consultants to assess the implications of the proposed simplifications. The consultation was open to companies under the Corporate Sustainability Reporting Directive (CSRD) scope and to the wider public until 12 September.
The European Commission (EC) President Ursula von der Leyen (VDL) delivered the annual the State of the European Union (SOTEU) speech, setting out the EC’s vision for upcoming challenges and priorities. On the sustainability agenda, VDL :
The new EU-US joint statement sets a framework for transatlantic trade that aims to ensure predictability for businesses, workers and consumers. It introduces a 15% tariff – or so-called Most Favoured Nation (MFN) rate – as a ceiling on most EU products imported into the US. The joint statement referred to several EU sustainability regulations:
The joint statement is currently a political agreement; a legally binding trade deal will be developed in the coming months. As a next step, the EC will work with Member States and the European Parliament (EP) to implement the agreed provisions.
The EP held a debate on the EU-US trade deal at the plenary session on 10 July where the EPP and Renew accepted the EU–US deal as a necessary compromise, while S&D was critical, highlighting risks to EU autonomy.
The EP will now scrutinise tariff-cut legislative proposals to add safeguards, reciprocity, and clear conditionality.
Th EC launched a public consultation and call for evidence for the upcoming Circular Economy Act, due for adoption in 2026.
The Act aims to drive the EU’s shift to a circular economy by establishing a Single Market for secondary raw materials, boosting supply and demand for quality recycled materials, and easing the movement of circular products.
The consultation runs until 6 November to gather input from stakeholders, ensuring alignment with key EU initiatives.
The EC adopted a recommendation on a voluntary sustainability reporting standard for small and medium-sized enterprises (SMEs).
SMEs do not fall under the CSRD mandatory reporting scope, this standard, however, is meant to help them respond effectively to sustainability information requests from larger companies and financial institutions. The EC also encourages these larger companies to base their information requests on the standard.
According to the EC, voluntary reporting could help SMEs can gain easier access to sustainable finance and strengthen their understanding of their sustainability performance
The recommendation acts as a transition measure until the EC adopts a DA on a future voluntary standard as proposed by the Omnibus proposal. The future standard may include changes which can also be impacted by the outcome of the final agreement between co-legislators on the Omnibus proposal.
The EC has adopted a Delegated Act (DA) to simplify the three existing Taxonomy delegated acts: disclosure, climate, and environmental. Key changes include:
The European Parliament (EP) and the Council have two months to scrutinise the DA. This period can be extended by another two months. The changes will apply from 1 January 2026 for the financial of 2025 year. Undertakings have the option to delay the adoption until the 2026 financial year.
The EC opened feedback on a proposal to amend the European Climate Law by setting a formal 2040 climate target.
The amendment introduces a binding goal of a 90% net reduction in greenhouse gas (GHG) emissions compared to 1990 levels, aligning with the EU’s 2030 objectives and its path to climate neutrality by 2050.
The feedback will be transmitted to the EP and Council to inform the legislative debate.
EFRAG’s new portal shares insights from its 2025-issued ESRS sustainability statements and the State of Play 2025 report. Key highlights:
The EC is seeking members for the third mandate of the Platform on Sustainable Finance. The call for applications was opened till 10 September. The new mandate will run from early 2026 to late 2027, with 35 members contributing to:
The European Supervisory Authorities (ESAs) issued updated Questions and Answers (Q&A) on the application of the Sustainable Finance Disclosure Regulation (SFDR). Key points include:
The International Auditing and Assurance Standards Board’s (IAASB) ISSA 5000 establishes a global baseline for consistent, high-quality sustainability assurance.
To support its effective application, the IAASB invites stakeholders to submit implementation questions of broad, cross-jurisdictional relevance. They will provide future guidance and resources.
Advisory groups, together with IAASB outreach, will help identify adoption challenges and shape timely, practical responses.
The IAASB has also prepared reference extracts containing only the material in ISSA 5000 relevant to limited assurance engagements and, separately, reasonable assurance engagements.
The IFRS Foundation has published its industry-based guidance. It helps companies apply the International Sustainability Standards Board (ISSB) Standards by outlining disclosure topics and metrics relevant to specific industries. The material explains:
Germany and France agreed on a joint economic agenda, stressing that the Omnibus achieve legal certainty and proportionality for companies of all sizes. They also call for:
Meanwhile, Norway issued a non-paper on the Omnibus proposal on sustainability, stressing that simplification must not weaken risk-based, proportionate and ongoing due diligence. Alignment with UN Guiding Principles and OECD Guidelines remains critical, particularly for risks deep in global supply chains.
The UK government has decided against introducing a Green Taxonomy in its sustainable finance framework. The consultation feedback showed limited support, with stakeholders prioritising other policies to accelerate the green transition.
The government concluded that a taxonomy is not the most effective tool to drive net-zero investment or prevent greenwashing.
The UK remains committed to sustainable finance but will focus on alternative measures to channel capital toward the green transition.
ACCA has released a series of resources to support accountants, finance professionals and other stakeholders in navigating emerging sustainability and regulatory developments:
European Ombudsman
Ombudswoman asks Commission for more details on preparation of simplified legislative proposal
ECB
ECB to adapt collateral framework to address climate-related transition risks
ECB
Letter from Christine Lagarde to MEPs on climate-related risks in the Eurosystem’s collateral framework
ESMA
Memorandum of Understanding on sustainable finance between ESMA and the EEA
ESMA
List of firms that have meet the obligations under the Article 69 or Article 70 of the European Green Bonds Regulation
EFRAG
EFRAG to field test 2 ESRS elements
IFRS
Disclosing information about anticipated financial effects applying ISSB Standards
U.S. exchanges and securities commission
Statement on the Commission’s status report in the climate-related disclosure rules litigation
