EFRAG

EFRAG is a non-profit organization promoting corporate reporting in Europe.

The European Financial Reporting Advisory Group (EFRAG) is a private, non-profit organization established in 2001 at the request of the European Commission to represent the public interest in corporate reporting, particularly regarding financial and sustainability reporting. The main task of EFRAG is to develop and promote European perspectives on financial reporting and sustainability standards to ensure that these views are considered in international standard-setting and EU regulatory processes.

One of EFRAG's central areas of responsibility is advising the European Commission. The organization provides technical recommendations for the adoption of International Financial Reporting Standards (IFRS) in the EU and examines whether newly issued or revised IFRS meet the criteria set out in the IAS Regulation. This includes assessing whether the adoption of these standards serves the general public interest in Europe.

Since 2022, EFRAG's mandate has expanded to develop drafts of European sustainability reporting standards under the Corporate Sustainability Reporting Directive (CSRD). These standards define how companies must report on environmental, social, and governance issues (esg), considering the principle of double materiality, which encompasses both the company's impact on society and the environment and vice versa. EFRAG thus plays a central role in ensuring quality and consistency in corporate reporting in Europe, contributing to improved transparency for investors and promoting sustainable business practices.