The European Financial Reporting Advisory Group and the Sustainability Standards Board of Japan jointly held an outreach event on the ESRS-40a Exposure Draft, which addresses sustainability reporting by certain non-EU undertakings under Article 40a of the Accounting Directive. The event gathered views from stakeholders primarily based in Japan as EFRAG develops its final technical advice to the European Commission. Many Japanese entities expected to apply Sustainability Standards Board of Japan standards are also likely to fall within ESRS-40a, creating a focus on interoperability and avoiding unnecessary duplication. In a bilateral meeting, the two standard setters discussed the draft and their broader activities, with both supporting continued cooperation to reduce the burden on companies applying requirements across the two jurisdictions.
2026-09-25European Financial Reporting Advisory Group
European Financial Reporting Advisory Group gathers Japanese input on draft non-EU sustainability reporting standard
The European Financial Reporting Advisory Group and the Sustainability Standards Board of Japan gathered Japanese stakeholder input on the ESRS-40a Exposure Draft for certain non-EU undertakings. Discussions focused on interoperability and reducing duplicate reporting burdens for Japanese entities likely to apply both sets of standards.