The European Securities and Markets Authority published its opinion on EFRAG’s draft revised European Sustainability Reporting Standards, supporting the European Commission’s simplification and burden-reduction objectives while recommending targeted amendments to better support investor protection and financial stability. ESMA highlights improvements in readability, language and format, and a reduction in the volume of requirements, including simplifications intended to focus reporting more on material matters. It identifies technical issues and advises the Commission to introduce time limits to certain permanent reliefs, refine requirements on transition plans, strengthen reporting on the sustainability competences of administrative, management and supervisory bodies, enhance transparency on financial resources allocated to sustainability actions, and adjust the exemption from reporting sustainability risks and opportunities for subsidiaries excluded from consolidated financial statements due to immateriality. The Commission is expected to consider ESMA’s opinion alongside feedback from the European Banking Authority, the European Insurance and Occupational Pensions Authority, the European Central Bank and other public bodies, with the aim of adopting the revised ESRS into a delegated act by summer 2026. ESMA will support national competent authorities in proportionate and harmonised supervision during the initial years of ESRS application and will continue contributing to EFRAG’s work on sustainability reporting guidance.
European Securities and Markets Authority 2026-02-18
European Securities and Markets Authority backs simplified revised ESRS but urges the Commission to make targeted disclosure adjustments
The European Securities and Markets Authority (ESMA) published its opinion on EFRAG’s draft revised European Sustainability Reporting Standards, endorsing the European Commission’s simplification goals while suggesting amendments for enhanced investor protection and financial stability. ESMA recommends improvements in readability, format, and a focus on material matters, alongside technical adjustments like time limits on permanent reliefs and enhanced transparency on sustainability actions. The Commission will consider ESMA’s input with other feedback to adopt the revised standards by summer 2026, with ESMA supporting national authorities in supervision.