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XBRL US and ESMA respond to EFRAG’s amended ESRS consultation

Posted on October 7, 2025 by Editor

XBRL US has submitted its response to EFRAG’s consultation on the amended European Sustainability Reporting Standards (ESRS). In its letter, XBRL US welcomed the proposed revisions and strongly endorsed alignment with the International Sustainability Standards Board (ISSB), stressing that companies already reporting under ISSB should be able to submit the same report in Europe. This, it noted, “supports interoperability and reduces duplication” in sustainability reporting.

XBRL US also emphasised the importance of clarity. Narrative facts, it argues, should be discretely presented to help consumers identify and extract data from reported information consistently and accurately, ensuring comparability across reporting entities. EFRAG’s proposed approach, breaking the sustainability statement into four parts, will make it easier to prepare and use disclosures.

The European Securities and Markets Authority (ESMA) also made a comment, supporting simplification but urging EFRAG not to dilute disclosure quality or weaken alignment with ISSB. In particular, ESMA highlighted that removing quantitative requirements for anticipated financial effects would be a “significant departure” from ISSB standards, and cautioned against open-ended reliefs that could undermine reporting quality.

From our perspective, both responses highlight the interplay between simplification and interoperability, and the critical balance to be struck in streamlined, globally valuable digital disclosures.

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