EFRAG Releases Proposed EU Sustainability Reporting Standards for Small Companies!

?? Exciting News: EFRAG Releases Proposed EU Sustainability Reporting Standards for Small Companies! ??

The European Financial Reporting Advisory Group (EFRAG) has released new exposure drafts containing proposed sustainability reporting standards for small and medium enterprises (SMEs). This marks the next step in establishing a new sustainability reporting system in Europe under the EU's Corporate Sustainability Reporting Directive (CSRD).

Key highlights of the proposed standards include:

? Expanding the number of companies required to provide sustainability disclosures to over 50,000 from around 12,000.

?Introducing more detailed reporting requirements on company impacts on the environment, human rights, social standards, and sustainability-related risk.

?Developing voluntary sustainability reporting standards for non-listed SMEs.

These new standards aim to support SMEs in getting better access to financing and enabling standardized sustainability information availability.?

Patrick de Cambourg, the EFRAG Sustainability Reporting Board Chair, stated,?

"SMEs are a crucial part of the European economy. After the completion of the ESRS for large undertakings, EFRAG releases these two proposed standards to support SMEs in being part of the transition to a more sustainable economy, getting appropriate access to finance, and reducing the burden of dealing with uncoordinated data requests while preparing decisions- helpful information for all. "

The new voluntary reporting standards for non-listed SMEs are designed to support businesses in accessing sustainable finance and serve as a simple reporting tool to assist non-listed micro-, small--- and medium-sized enterprises (non-listed SMEs) in responding to requests for sustainability information from business counterparties.

EFRAG has launched a consultation on the exposure drafts, which will be open until May 21, 2024 and invites preparers and users to participate in the field test and reminds them that the deadline to submit interest is January 31, 2024.

Attached are the exposure drafts below-

Voluntary ESRS for Non-listed small and medium-sized enterprises

ESRS for listed small- and medium-sized enterprises

Let's work together to create a more sustainable future for our businesses and communities! ?????