The European Financial Reporting Advisory Group (EFRAG) is wrapping up the last piece of its CSRD standards. EFRAG expects to publish the final ESRS 40a standards in early 2027. ESRS 40a applies to in-scope non-EU companies, which is the final phase of CSRD implementation. Absent new reporting standards, EFRAG is setting its sights on the future. The agency just issued a consultation outlining its 2027-2029 sustainability reporting agenda for public feedback. A recent Linklaters memo discusses the big picture of EFRAG’s priorities in 2027-2029:
“EFRAG expects no new standard-setting work between 2027 and 2029 once ESRS-40a (for certain non-EU undertakings) is finalised at the start of 2027.
Post-implementation reviews are not due before 2030 for the revised ESRS and 2031 for the Voluntary Standard.
EFRAG proposes to split its remaining capacity roughly 50% implementation support, 15% digitalisation and the ESRS Knowledge Hub, 15% research on emerging trends, and 15% influencing international developments, with scope to reallocate if unexpected standard-setting work arises.”
EFRAG’s priorities give an idea of where European sustainability is headed. The major frameworks and plans are in place; now is the time for executing those plans. We’ll likely see more guidance from EFRAG as the agency moves to its new Implementation Support System (ISS). The ISS will replace EFRAG’s old Q&A system and provide protocols for the agency’s ongoing operations. In this capacity, EFRAG intends to listen to stakeholder feedback and provide clarity in some limited cases. As it observes the market, the agency will focus on working within the existing statutory framework to clarify its standards.
Our members can learn more about sustainability disclosure standards here.
