How can organisations tell a coherent story across financial and sustainability reporting? Read our views on EFRAG’s work on reporting connectivity.
We sent a letter to Commissioner Albuquerque on the N-ESRS currently being developed by EFRAG. Read our remarks.
The European Commission (EC) has adopted the Delegated Acts (DAs) with the revised European Sustainability Reporting Standards (ESRS). The DA features limited changes compared to the EC version published for feedback in May.
The most notable development in the ESRS DA is further alignment with international frameworks, including the International Sustainability Standards Board (ISSB). Additional updates include:
The DA will now enter the scrutiny phase with the Council and the European Parliament (EP). During this period, co-legislators may approve or reject the act but cannot amend it. If no objections are raised within the initial two months, the act will be published in the EU Official Journal (EUOJ) and enter into force. The EP and the Council may request an extension of this period by 2 months.
The EP’s Legal Affairs (JURI) Committee held an exchange of views with Commissioner Albuquerque. While certain MEPs criticised the roll-back of EFRAG’s ambition and warned of trickle-down burdens on SMEs, Albuquerque defended the revisions as a necessary compromise to secure business stability, curb administrative costs, and protect EU competitiveness, while maintaining ambition.
Following the EC’s adoption of the revised ESRS, Accountancy Europe issued a statement:
The EC also issued a DA with the voluntary reporting standard. The final DA seems to include relatively few changes. A few of the changes identified:
The DA will now enter the scrutiny phase of 2 months by the EP and the Council (same as the revised ESRS DA). The EP and the Council may request an extension of this period by 2 months.
The Council has adopted its negotiating position on revising the Sustainable Finance Disclosure Regulation (SFDR). The revision introduces three product categories: Sustainable, Transition, and ESG Basics, to strengthen comparability and help combat greenwashing.
Key Council amendments to the proposal include:
The revision ultimately seeks to reduce administrative burdens and strengthen investor trust in sustainable finance. The Council’s position now forms its mandate for trilogue negotiations with the EP, which must first finalise its own legislative stance.
The European Securities and Markets Authority (ESMA) has launched a public consultation aimed at simplifying the EU Taxonomy disclosure framework. It seeks to provide technical advice to the EC and focuses on reducing operational complexity and addressing Key Performance Indicators (KPIs) under the Disclosures DA.
The consultation covers four core areas:
Stakeholders are invited to share their feedback by 12 August. ESMA will hold a webinar to present the proposals on 22 July.
The EIOPA and EBA are also conducting consultations in parallel on the same subject, within their respective areas of competence.
ESMA has published its register of authorised external reviewers for European green bonds, marking the end of the transitional regime under the EU Green Bond Regulation (EUGB).
These registered reviewers are now under direct ESMA supervision to ensure:
Moving forward, issuers planning to issue an EGB must consult this official register to select an approved reviewer for all pre- and post-issuance assessments.
EFRAG’s 2026 State of Play Report on ESRS implementation, drawing on 905 assured sustainability statements in 2025, finds broadly stable second-year ESRS reporting. Climate Change (E1), Own Workforce (S1), and Business Conduct (G1) remain the most material topics. Among other highlights:
On 13 July, the EC adopted two measures to support the implementation of the EU Deforestation Regulation (EUDR), which will begin to apply from the end of December 2026. The measures aim to provide greater legal certainty and simplify compliance for businesses and competent authorities.
A DA updates the list of products covered by the EUDR by removing certain products, including cattle hides and leather, re-treaded tyres and some rubber products, while adding some others. The newly added products will only become subject to the Regulation from 30 December 2027, giving businesses additional time to prepare. The text will be submitted to the EP and the Council for scrutiny before its entry into force.
In parallel, the EC adopted an Implementing Act setting out the technical rules for the EUDR Information System. The updated system introduces operational simplifications, including simplified due diligence declarations for micro and small primary operators and updated technical specifications for automated submissions. Additional functionalities are expected later this summer.
The measures build on the legislative amendments agreed in December 2025 and form part of the EC’s broader simplification package presented in May 2026.
The International Auditing and Assurance Standards Board (IAASB) FAQs focus on the application of materiality in sustainability assurance engagements. The document explains how both reporting entities and assurance practitioners apply materiality, including:
The International Federation of Accountants (IFAC), the American Institute of CPAs (AICPA) and the Chartered Institute of Management Accountants (CIMA) issued another report in their benchmarking series State of Play: Sustainability Disclosure and Assurance.
Key findings from the latest report include:
Switzerland has launched a public consultation on its Draft Federal Act on Sustainable Corporate Governance (open until 9 July).
Drawing heavily on the EU’s CSRD and Corporate Sustainability Due Diligence Directive (CSDDD), the draft adopts the double materiality principle for sustainability reporting.
Entities would be required to report using the ESRS or an equivalent standard. The use of ISSB standards combined with GRI is permitted, provided double materiality requirements are met.
However, the draft acknowledges that this combination is not yet considered equivalent to ESRS, pending ongoing standard-setting work on both sides.
