The European Financial Reporting Advisory Group has published a comment letter on the International Sustainability Standards Board exposure draft proposing amendments to the SASB Standards and the IFRS S2 industry-based guidance for the Agricultural Products, Meat, Poultry and Dairy, and Electric Utilities and Power Generators industries. EFRAG supports the ISSB’s work to update the SASB Standards, but calls for changes that improve consistency, reduce complexity and ambiguity, and strengthen interoperability with the European Sustainability Reporting Standards and other internationally recognised frameworks. Drawing on feedback from EFRAG’s public consultation and reflecting European stakeholder views, the letter asks the ISSB to set out a clearer long-term reporting architecture and revision path that addresses due process, reporting feasibility and alignment with sector-agnostic provisions in the ISSB Sustainability Disclosure Standards. It also recommends embedding interoperability throughout the standard-setting process by systematically assessing alignment with ESRS before amendments are finalised. In addition, EFRAG warns that the proposed amendments contain a high share of sector-agnostic disclosures that could create de facto topical standards, and calls for a clearer boundary between sector-agnostic and industry-specific requirements. It also reiterates recommendations from its 2025 comment letter, including that SASB and ISSB sustainability disclosure requirements should remain complementary and avoid unnecessary overlap. Feedback on the ISSB exposure draft will inform the finalisation of the proposed enhancements for the three SASB industry standards. EFRAG said it will continue engaging with the ISSB on interoperability between the SASB Standards and ESRS.
European Financial Reporting Advisory Group2026-07-27
European Financial Reporting Advisory Group urges ISSB to simplify SASB amendments and strengthen interoperability with ESRS
The European Financial Reporting Advisory Group has responded to the ISSB’s proposed SASB amendments and related IFRS S2 industry guidance, backing the update but calling for less complexity and stronger interoperability with ESRS. Its recommendations focus on a clearer reporting architecture, systematic alignment checks and a sharper distinction between sector-agnostic and industry-specific disclosures. Feedback to the ISSB will feed into final amendments for the three affected SASB industry standards.