These working documents reflect the European Commission’s mandate to EFRAG to simplify and streamline the first set of European Sustainability Reporting Standards (ESRS). The goal is to alleviate reporting burdens while preserving the ambition of the CSRD and the European Green Deal.

Notable updates include:

• Simplification of the double materiality assessment
• Greater clarity on materiality and disclosures
• Better structure and readability of sustainability statements
• A reduction of approximately 66% in mandatory datapoints

EFRAG meeting announcement

The post EFRAG discusses revised ESRS working documents ahead of public consultation appeared first on ECIIA.

Instead of excluding them, the ECB suggests applying simplified, tailored reporting standards that reflect these companies’ capacities and business complexity.

Read the full opinion here

The post ECB Calls for Proportional Sustainability Reporting Standards appeared first on ECIIA.

These guidelines apply to issuers listed on regulated markets who are required to publish sustainability information under the Accounting Directive. They provide clarity on how national authorities (enforcers) should select, examine, and respond to potential issues in sustainability statements, with the broader aim of aligning sustainability reporting oversight with that of financial reporting.

• The guidelines apply to sustainability information published from 1 January 2025 onwards.
• Competent authorities now have two months to inform ESMA whether they already comply or will comply.

For more details, check out the document below:

The post ESMA Issues Guidelines on Enforcement of Sustainability Information appeared first on ECIIA.

The goal is to improve transparency, set clear standards, and align companies with sustainability objectives. However, the report does not assess the Omnibus proposals, which aim to simplify sustainability-related legislation.

To dive deeper into the ECB’s recommendations, read the full report here: ECB Report on Greenwashing.

The post Greenwashing and How to Tackle It: ECB’s Recommendations appeared first on ECIIA.

While the findings show that banks and investment firms are making progress, the EBA also points out some persistent challenges, especially in accessing reliable, comparable, and granular data. This is key for risk management and aligning with the EU’s sustainable finance agenda.

The report supports the development of a stronger data infrastructure, clearer regulatory expectations, and more guidance to help financial institutions bridge existing gaps.

Read more.

The post EBA report highlights progress in environmental risk data – but challenges remain appeared first on ECIIA.

In her letter, the Commissioner officially mandated EFRAG to revise the ESRS in line with the simplification objectives laid out in the draft Omnibus Directive. The aim is to reduce reporting burdens—particularly for SMEs—while preserving the quality and usefulness of sustainability disclosures.

EFRAG has been asked to:

• Follow the simplification priorities from the Omnibus recitals;
• Deliver its technical advice by 31 October 2025 (subject to possible adjustment depending on the Omnibus finalisation);
• Engage with first-year reporters to identify the most critical datapoints;
• Propose an innovative due process that balances speed with stakeholder input.

The ECIIA continues to follow developments closely, as internal auditors are instrumental in supporting organisations’ sustainability reporting and assurance processes.

Read more

Update – Public Call for Input on ESRS Set 1

EFRAG has launched a public consultation to collect feedback on the simplification and revision of ESRS Set 1. This initiative follows the European Commission’s mandate and aims to ensure clearer and more usable sustainability reporting standards. Internal auditors are encouraged to share their views, especially based on their experience with Wave 1. You can also send us your comments to the info@eciia.eu

Submit your feedback here – deadline is 6 May 2025.

ECIIA’s Response to the Consultation

ECIIA has submitted its reaction to EFRAG’s consultation, highlighting the importance of aligning ESRS revision with effective governance and audit practices. Our key messages include:

• Strong governance is essential to support ESRS. Governing bodies need the right tools, internal assurance, and competencies to oversee sustainability reporting. Clear responsibilities, quality management of stakeholder relationships, and an independent internal assurance chain are key elements of this model.
• Data quality challenges remain. ECIIA suggests a gradual integration approach to improve data reliability and reduce the burden on reporting entities.
• Implementation takes time. Both organisations and external auditors need space to build adequate policies and standards. Therefore, we recommend that the assurance report is not required immediately and that clear assurance guidelines are defined in advance.

ECIIA remains committed to supporting high-quality, practical, and sustainable reporting practices in Europe.

Read our full response.

The post Revision of the European Sustainability Reporting Standards (ESRS) appeared first on ECIIA.

In the latest Macroprudential Bulletin, the European Central Bank examines the link between geopolitical risk and bank solvency. The analysis, covering 120 years of data, reveals that heightened geopolitical tensions often lead to lower bank capitalisation, impacting economic stability.

Key findings include:

• Major geopolitical events (e.g., wars, terrorism) have a non-linear effect on banks.
• Macroprudential policy and microprudential supervision play crucial roles in ensuring banks are prepared to absorb geopolitical shocks.

Explore the full article to understand how policymakers can respond to these risks and maintain financial stability.

Read more here.

The post Geopolitical Risk and Its Implications for Macroprudential Policy appeared first on ECIIA.

Key takeaways:

• CSRD Reporting Delayed – Companies required to report for financial years starting on or after 1 January 2025 and 2026 will now have an additional two years to prepare.
• CSDDD Implementation Adjusted – The first set of companies falling under the directive will see a one-year postponement, allowing them more time to integrate compliance measures and align with forthcoming Commission guidelines.
• Member States Compliance Deadline – National laws implementing the directive must be in place by 31 December 2025.

This decision aims to provide businesses with the necessary time and resources to adapt to sustainability reporting and due diligence requirements effectively.

Note: The decision does not take legal effect from today, as it must first be published in the EU’s Official Journal. However, this is just a formality and will take place in the coming weeks.

Read the full details here.

The post European Parliament Votes on CSRD & CSDDD Postponements appeared first on ECIIA.

The review, which will be carried out throughout the year, will assess whether internal audit functions have the necessary staffing, authority, knowledge, and expertise to fulfill their responsibilities. It aims to ensure compliance with regulatory requirements and strengthen oversight in the sector.

ECIIA will closely follow this initiative through its Banking Committee.

Read more: ESMA Announcement

The post ESMA and National Regulators Launch Joint Review of Internal Audit in Fund Management appeared first on ECIIA.

• A risk-based and proportional approach across the AI lifecycle,
• Ensuring fairness and ethical use of AI, prioritising consumer interests,
• Clear roles and responsibilities, including expectations for internal audit,
• The ability to explain AI-driven outcomes,
• Robust data governance and regular AI audits,
• Comprehensive documentation and record-keeping.

The ECIIA Insurance Committee will provide a response to this consultation.

For more details, visit the official consultation page: EIOPA Consultation on AI Governance and Risk Management.

Update: ECIIA has submitted its response to the EIOPA consultation on AI governance and risk management in insurance.

Our main recommendations:

• Clarify the distinction between the roles of Internal Audit (IA) and External Audit (EA)
• Reinforce the importance of strong governance structures
• Define how this guidance aligns with existing regulations such as the AI Act

Read our full response here.

The post EIOPA Launches Consultation on AI Governance and Risk Management in Insurance appeared first on ECIIA.