The Commission welcomes the guidance on the interoperability between the European and international sustainability reporting standards, which was published today by EFRAG, the body advising on European Sustainability Reporting Standards (ESRS), and the International Sustainability Standards Board (ISSB). The guidance provides support to companies that want to comply with both standards, with a particular focus on climate reporting.
While designing the ESRS, the Commission worked with international standards setters to ensure that European standards effectively incorporate the global baseline, whilst preserving the EU’s ambition for transparency. The guidance published today recognises these efforts. It shows that EU companies reporting under European standards can comply with the global ones with minimal additional effort. This reflects the Commission’s commitment to minimising the burden on companies from sustainability reporting.
Mairead McGuinness, Commissioner for Financial Services, Financial Stability and Capital Markets Union, said: “Climate change is a global challenge. I welcome today’s guidance that recognises the Commission’s sensible approach to sustainability reporting, and a commitment to ensuring a very high degree of alignment between EU and international sustainability reporting standards. It is important that reporting frameworks in different jurisdictions are interoperable with each other to reduce the reporting burden for EU companies.”
The EU’s sustainability disclosure rules aim to provide investors and other stakeholders with the information they need to assess the impact of companies on people and the environment as well as the financial risks and opportunities arising from climate change and other sustainability issues. The first companies in scope of the Corporate Sustainability Reporting Directive (CSRD) will report against the ESRS in 2025 for the financial year 2024.
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