Last week we saw the publication of the revised European Reporting Standards (ESRS) Exposure Drafts, forming part of the EU’s Omnibus proposal to reduce the sustainability reporting and regulatory burden on companies.
Developed by EFRAG, these amendments address the implementation pain points that emerged during the first year of reporting, while preserving the standards’ core purpose and decision-usefulness.
While we largely welcome the amendments, we’re mindful that some – particularly around the anticipated financial effects of climate change – risk diluting the depth of information.
Having said that, the proposed standards demonstrate a push for more authentic, organisation-specific disclosure and a move beyond boilerplate language, allowing companies to own their sustainability narrative. This recognises what we’ve long advocated for – that effective sustainability reporting should reflect how organisations actually think about and manage their sustainability challenges.
We’re feeling cautiously optimistic that these changes will lead to more relevant, decision-useful sustainability information for all stakeholders.