AFME welcomes the European Commission's adoption of the simplified European Sustainability Reporting Standards (ESRS) as a Delegated Act, marking an important step towards a more proportionate and decision-useful EU sustainability reporting framework.
We support the efforts of the Commission and EFRAG to reduce unnecessary datapoints, improve the application of materiality, streamline the structure of the standards, clarify unclear provisions and enhance alignment with global reporting frameworks.
The intended optionality for firms to apply the simplified ESRS for financial year 2026 will depend upon the timely completion of the scrutiny process and publication of the Delegated Act in the Official Journal of the EU. AFME therefore encourages the European Parliament and Council to proceed with timely non-objection to the simplified ESRS, providing reporters with legal certainty and delivering on simplification objectives.
AFME also reiterates the importance of the prompt adoption of limited assurance guidelines. Clear and proportionate assurance expectations remain critical to reducing the overall implementation burden.
AFME looks forward to continuing to work with members and policy makers to support effective implementation of the revised framework.
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