The Platform on Sustainable Finance, an advisory body to the European Commission, called on 26 October for a consistent global reporting perimeter in draft EU standards for certain non-EU companies. It opposes a proposed “mixed approach” to reporting sustainability impacts.
Under EFRAG’s outline of the draft, reporting is generally global, but groups could limit information on topics other than climate to EU-related impacts. EFRAG says the proposed report covers all topics under the Corporate Sustainability Reporting Directive (CSRD), not just climate.
The CSRD introduces reporting requirements for certain non-EU companies with significant EU activities. The Article 40a scope described by EFRAG includes companies generating more than €450 million in EU net turnover in each of the last two consecutive financial years that also have an EU branch generating more than €200 million, or are the ultimate parent of EU subsidiaries generating more than €200 million.
The Platform recommends keeping the non-EU standards closely aligned with those for EU companies, while reflecting their distinct legal mandate. It also calls for appropriate EU Taxonomy-related information to support the EU sustainable finance framework.
ESG Today reported that investor association Eurosif warned the mixed approach could leave disclosures incomplete or misleading, make them less consistent and raise investors’ costs as they fill information gaps.
EFRAG says the consultation closes on 31 October 2026 and reporting will be mandatory for financial years starting on or after 1 January 2028. It expects the first statements, covering financial year 2028, to be published in 2029.
