The European Banking Authority (EBA) published an opinion on the draft amended European Sustainability Reporting Standards developed by EFRAG, highlighting progress and key concerns, especially regarding reliefs and reporting impacts.
The European Banking Authority (EBA) has published an opinion on the draft amended European Sustainability Reporting Standards (ESRS) developed by the European Financial Reporting Advisory Group (EFRAG).
The EBA recognizes the progress made in simplifying elements of the initial standards and supports efforts to reduce reporting compliance costs. However, it highlights concerns about the permanent nature of certain reliefs and their potential to reduce the amount of quantitative information reported, which may conflict with the objective to prioritize quantitative data.
The EBA emphasizes the importance of analyzing sustainability-related risks and recommends setting time-limits for relief measures. It warns that permanent reliefs could undermine interoperability with international standards and increase burdens on users, including financial institutions, who may need to seek additional information from counterparties.
The opinion notes that large, resource-rich companies within the scope of the revised Corporate Sustainability Reporting Directive (CSRD) should be able to meet the requirements. The EBA also points out that unlimited reliefs may hinder international compatibility and place extra burdens on financial institutions.
The European Commission also requested opinions from the European Securities and Markets Authority (ESMA), the European Insurance and Occupational Pensions Authority (EIOPA), and the European Central Bank (ECB).
This opinion is based on Article 16a(4) of Regulation (EU) No 1093/2010 and Article 49(3b) of Directive 2013/34/EU, as amended by the CSRD. EFRAG was asked to provide technical advice on simplifying the ESRS by November 2025, which it completed and published on December 3, 2025, after a public consultation.
