Sustainability
The European Commission has released revised European sustainability reporting standards (ESRS) and a voluntary reporting standard for smaller companies, following the European Union (EU) paring back mandatory requirements. The revised ESRS are shorter and clearer than earlier versions, said the commission, with new flexibilities and streamlined key processes. They reduce mandatory datapoints by more than 60% and the total number of datapoints by 70%, reducing reporting costs by more than 30% per company. The changes are expected to come into force by November at the latest.
The EU Council of Ministers has backed proposed changes to the sustainable finance disclosure regulation, which requires issuers to disclose social, environmental and governance sustainability risks and adverse impacts within their investment offers. Ministers want to ensure that companies make mandatory use of at least three indicators from a list to be provided by the European Commission to support their claims, preventing greenwashing.
EFRAG (the European Financial Reporting Action Group) has assessed 108 sustainability data and analysis platforms to be used by small-and-medium-sized enterprises who follow the EU’s voluntary sustainability reporting standard for SMEs. The European Commission is drafting a new regulation on operating this standard, and EFRAG has advised on free online analysis resources.
The IFRS Foundation has announced an International Sustainability Standards Board (ISSB) Training Partner Programme, which will enable qualified organisations to instruct companies on using ISSB standards. The foundation has recruited an initial cohort of training partners to launch the scheme and is inviting applications from further partners worldwide. The IFRS Foundation will support them in delivering training content using IFRS Foundation-developed materials.
The Global Reporting Initiative (GRI) has released a study that claims it is the most widely used sustainability disclosure standard, with GRI reporters accounting for 62% of global market capitalisation in 2025. The State of Sustainability Reporting: Global Trends in the GRI Standards 2025 draws on published reports from almost 15,000 listed companies across 132 jurisdictions, with revenue exceeding US$250m.
Accounting standards
The International Accounting Standards Board (IASB) has issued amendments to IAS 28, Investments in Associates and Joint Ventures, to clarify which investments in company associates and joint ventures should be measured using IAS 28’s fair value option. The goal of the changes is to help the implementation of the new IFRS 18, Presentation and Disclosure in Financial Statements, given concern about diverse interpretations in how new requirements interact with IAS 28.
Financial regulation
The US’s Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) are consulting on plans to update, clarify and harmonise certain derivative product definitions and interpretations. The SEC and CFTC are seeking insight on definitions relating to swaps and security-based swaps; treatment of mixed swaps, novel or emerging products; and more.
Auditing and assurance
The International Auditing and Assurance Standards Board has released FAQs aiding understanding of materiality in implementation of its International Standard on Sustainability Assurance (ISSA) 5000, General Requirements for Sustainability Assurance Engagements. The advice aids understanding the needs of intended users of sustainability information; addressing qualitative and quantitative disclosures; double materiality considerations; and how materiality supports decision-useful sustainability reporting.
More information
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