According to ESG Today, this was done in order to prioritize EFRAG to first help companies implement the first sustainability reporting standards, which include sustainability-related impact, risks and opportunities. The new standards are to be applied at the beginning of the next year and the first to have to comply with the new standards are large companies.

The new sustainability reporting standards will include significantly more companies than before, meaning that instead of 12.000 companies, 50.000 will have to release non-financial sustainability reports.

EFRAG was commissioned by EU officials to implement new sustainability reporting standards back in 2020 and in 2022, the group came with the first draft of ESRS, which apply to all sectors. Sector-specific reporting is expected to come sometime later this year.

EFRAG officials are now considering how to implement European Sustainability Reporting Standards, as they could need to provide companies with assistance and to create a simple and easy to understand documentations system for those, as well. To do so, the group stated that it would increase its number of employees and it will allocate further resources.