EFRAG (European Financial Reporting Advisory Group)

EFRAG is the European Financial Reporting Advisory Group, an independent body established under the CSRD (EU) 2022/2464 as the standard-setter for European Sustainability Reporting Standards (ESRS). EFRAG develops draft ESRS for adoption by the European Commission as delegated acts. EFRAG published the first set of draft ESRS in April 2022 and final recommendations in November 2022; the Commission adopted them in July 2023 (Delegated Regulation (EU) 2023/2772). EFRAG submitted simplified ESRS technical advice to the Commission in December 2025, following the Omnibus I mandate. Revised ESRS are expected to be adopted by the Commission in Q2 2026.

CSRD (EU) 2022/2464, Article 19a; Commission Delegated Regulation (EU) 2023/2772 (first set of ESRS); EFRAG simplified ESRS exposure drafts (July 31, 2025) and technical advice (December 2025).

EFRAG’s simplified ESRS (expected Q2 2026 as a delegated act) will significantly reduce reporting burden. Key simplifications include: 68% reduction in total disclosures (mandatory and voluntary); simplified DMA process; removal of all voluntary disclosures; no sector-specific ESRS. Companies preparing Wave 1 sustainability statements should continue using current ESRS (Delegated Regulation (EU) 2023/2772), taking advantage of Quick-Fix relief provisions. Monitor EFRAG’s website and Commission delegated act adoption timeline for revised standards.