The European Insurance and Occupational Pensions Authority (EIOPA) has published an Opinion on the European Financial Reporting Advisory Group’s (EFRAG) technical advice on the draft revised European Sustainability Reporting Standards (ESRS), following a request from the European Commission. The Opinion concentrates on amendments most likely to affect the (re)insurance and occupational pensions sectors and supervisors, including whether the revised ESRS would keep key sustainability data available for risk assessment, remain consistent with EU requirements such as Solvency II sustainability risk management, and support interoperability with international standards including International Financial Reporting Standards (IFRS). EIOPA supports EFRAG’s simplification approach and the aim of reducing reporting burdens while preserving meaningful sustainability reporting. It recommends introducing a 3-year time limit on the waiver allowing undertakings to omit own-operations data where reporting would involve “undue costs or efforts”, arguing that the current proposal could permit indefinite non-reporting; a time limit would improve interoperability with IFRS and incentivise cost-efficient improvements in data collection. EIOPA also considers that (re)insurance undertakings should be allowed to leverage internal risk management procedures developed for prudential purposes under Solvency II when preparing the financial materiality assessment, to reduce burdens and promote consistent disclosures. Once adopted by the European Commission, the revised ESRS will define the sustainability information large companies subject to the Corporate Sustainability Reporting Directive (CSRD) must disclose as of 2028, with scope reduced by the Omnibus I Directive to EU undertakings or groups with net turnover exceeding EUR 450 million and an average of more than 1,000 employees in the relevant financial year. Smaller companies will be able to report voluntarily using a simplified standard proposed by the European Commission in 2026 and adopted in parallel with the Delegated Act on the revised ESRS; the Commission also requested Opinions from the European Banking Authority, the European Securities and Markets Authority and the European Central Bank.
European Insurance and Occupational Pensions Authority 2026-02-16
European Insurance and Occupational Pensions Authority issues Opinion on revised ESRS and calls for a 3-year cap on the undue costs or efforts waiver
The European Insurance and Occupational Pensions Authority (EIOPA) has issued an Opinion on the European Financial Reporting Advisory Group's (EFRAG) advice regarding the draft revised European Sustainability Reporting Standards (ESRS). EIOPA supports EFRAG's simplification approach but recommends a 3-year limit on waivers for omitting own-operations data to enhance interoperability with International Financial Reporting Standards (IFRS). Once adopted, the revised ESRS will dictate sustainability disclosures for large companies under the Corporate Sustainability Reporting Directive (CSRD) from 2028.