The European Financial Reporting Advisory Group (EFRAG) has introduced a draft sustainability reporting standard for non-EU companies with significant operations in the European Union. The proposal aims to simplify ESG disclosure requirements while maintaining transparency under the Corporate Sustainability Reporting Directive (CSRD).
According to EFRAG, the revised framework could reduce the number of non-EU companies subject to mandatory reporting by nearly 88%, cutting the scope from around 10,000 firms to about 1,200. The draft is now open for public consultation before being finalized and submitted to the European Commission for approval.
Reference: ESG News