Regulatory Briefing: EU seeks feedback on ESG reporting drafts

EU advisory group Efrag has opened a public consultation on the reporting standards part of the Corporate Sustainability Reporting Directive, which captures about 50,000 companies in Europe. Listed companies and any company with more than 500 employees would be subject to the reporting requirements. 

These are standards that look at each of the three components of ESG, as well as elements that cut across the environmental, social and governance groupings. The consultation seeks views on the implementation of the CSRD and of the European Sustainability Reporting Standards part of the directive, as well as on the adequacy of each disclosure requirement. In addition to reporting obligations, the CSRD also requires the audit of reported information and that this be digitally tagged so that it is machine readable.