EFRAG to Consult on Simplified Sustainability Reporting for Non-EU Companies

The European Financial Reporting Advisory Group (EFRAG) is preparing to launch a consultation on proposed sustainability reporting requirements for non-EU companies operating in the European market. The initiative aims to simplify reporting obligations while ensuring that companies continue to provide meaningful sustainability-related information to investors and regulators.

The consultation will focus on the development of the Non-EU European Sustainability Reporting Standards (N-ESRS), which are intended for companies with significant business activities in the European Union. EFRAG has indicated that the consultation is expected to begin in July 2026 and will allow stakeholders to provide feedback on the proposed framework.

According to reports, EFRAG is considering measures that could reduce reporting burdens for international companies, including approaches to avoid duplication between EU requirements and sustainability disclosures already required in other jurisdictions. The proposals may also limit certain non-climate reporting requirements outside the EU while maintaining core transparency objectives.

The move forms part of broader efforts by European institutions to simplify sustainability reporting requirements while preserving the quality and comparability of disclosures. Recent revisions to the European Sustainability Reporting Standards have already sought to reduce complexity and provide companies with greater flexibility in meeting reporting obligations.

Once the consultation process is completed, EFRAG is expected to use stakeholder feedback to refine the proposed standards before submitting technical advice to the European Commission. The final framework will help determine how non-EU companies report sustainability information under the EU's evolving corporate disclosure regime.

Simplification for non-EU companies still leaves substantial obligations for third-country undertakings with EU footprints, and the consultation is the moment to shape final scope. Our ESG-strategy and sustainability-due-diligence teams help non-EU multinationals evaluate exposure and build reporting infrastructure robust across scenarios.