ESMA has just published its new Assessment Framework (11 May), and it’s an important milestone for the future of ESRS.

Unlike the February Opinion on the revised ESRS, this Framework is not a legal deliverable – it’s an internal supervisory tool designed to bring clarity, consistency, and transparency to how ESMA evaluates EFRAG’s technical advice.

The Framework provides a stable methodology that ESMA will use for all future ESRS assessments. It reflects the lessons learned from the February Opinion and ESMA’s core mandate:

▪️ High‑quality, decision‑useful sustainability information
▪️ Investor protection
▪️ Financial stability
▪️ Coherence with EU sustainable finance rules

ESMA evaluates ESRS across four criteria, each with detailed sub‑criteria and indicators, rated from fully capable to not capable:

1️⃣ Quality of sustainability information

Are disclosures forward‑looking, risk‑based, comparable, entity‑specific, and aligned with the Accounting Directive?

2️⃣ Consistent application

Are the standards clear, auditable, enforceable, and compatible with ESEF digital tagging?

3️⃣ Consistency with EU legislation

Do ESRS align with SFDR PAI indicators, Taxonomy Article 8, CTB/PAB benchmarks, and other EU rules?

4️⃣ Interoperability with global standards

How well do ESRS align with IFRS S1/S2 and GRI, while preserving EU‑specific concepts like double materiality?

ESMA may update the Framework as legislation evolves – but it now provides a transparent reference point for future ESRS evaluations.

How this differs from the February Opinion

ESMA’s Opinion on the revised ESRS (Feb) was not a methodology – it was a concrete assessment of EFRAG’s December 2025 draft standards.

ESMA welcomed simplification but flagged some issues affecting investor protection and comparability, including:

• Reliefs: Too broad or permanent, reducing data quality and weakening alignment with IFRS S1/S2.
• Materiality: Need for clearer guidance on top‑down assessments and treatment of non‑material subsidiaries.
• Climate & transition plans: Requests for clearer definitions, ambition levels, and stronger requirements on targets and financed emissions.
• SFDR & Taxonomy alignment: Risks of burden‑shifting and loss of key datapoints.
• Digital reporting: Some grouped disclosures still need separate tagging.
• Interoperability: Divergences in scenario analysis, GHG boundaries, and reliefs absent from IFRS.

In short

• The February Opinion = ESMA’s judgement on the revised ESRS.
• The May Assessment Framework = the methodology ESMA will use going forward.

Together, they signal a clear direction: simplification is welcome, but not at the expense of investor‑grade sustainability information – meaning sustainability data that is as trustworthy, comparable, and decision‑useful as financial information.

👉 Contact us if you want to use our guided digital ESRS end-to-end templates to get a head start >>>

#CSRD, #ESRS

The Assessment Framework is available here: https://www.esma.europa.eu/sites/default/files/2026-05/ESMA32-846262651-5443_ESRS_assessment_framework.pdf

The audit profession is being rewritten in real time. Full AI audit automation and advanced AI agents are being deployed to transform how evidence is gathered and insights are delivered.

This shift is not incremental. It is structural – and it directly impacts sustainability reporting.

Under #ESRS 1 §104, sustainability information must be clearly identifiable, structured, and both human‑readable and machine‑readable. In short: your sustainability statement must be ready for AI.

Why this changes everything 👇

1. AI audits require precision, not narrative padding

AI detects gaps, inconsistencies, missing datapoints, and unsubstantiated claims instantly. Vague narratives and inconsistent connections will be surfaced immediately.

Reporting standards exist for a reason: to deliver standardized, comparable, verifiable information – and that visibility is exactly how #CSRD and transparency drive progress.

2. Manual testing is disappearing

KPMG has confirmed that AI will perform routine audit testing, with humans supervising rather than executing the work. PwC anticipates full AI integration across the audit cycle within the year.

This means sustainability statements will be examined by systems capable of scanning 100% of data, cross‑checking disclosures against ESRS datapoints, identifying missing IRO linkages, detecting inconsistencies between narrative and metrics, and flagging anomalies.

3. Governance expectations are rising

AI‑enabled audits increase transparency, professional skepticism, and audit quality. Boards must now understand how AI decision‑making and human oversight interact – and adapt governance frameworks accordingly. This is not just a technology shift. It is a governance shift.

🖥️ ESRS: built for a digital audit era

ESRS was designed for machine readability. Paragraph 104 makes this explicit. This is not optional, it is foundational.

In practice, your sustainability statement must:

▪️ mark every required datapoint, incl GDR requirements

▪️ separate ESRS‑required content from authorized supplementary content

▪️ ensure consistency across policies, actions, targets, and metrics (PATM)

▪️ demonstrate clear IRO‑to‑PATM linkages

▪️ avoid narrative dilution

▪️ be audit‑ready at the datapoint level

The era of promotional ESG storytelling is over. ESRS demands decision‑useful information.

If your first ESRS report is due in FY2027, remember: early reporters will already be on their fourth cycle. Building processes, collecting data, and aligning teams takes time. Waiting until 2027 means falling years behind.

🌿 A well‑structured, machine‑readable sustainability statement strengthens governance, accelerates internal learning, reveals strategic blind spots, and positions your organization for the EU’s dual green and digital transition.

Guided digital ESRS end-to-end templates

👉 Contact us if you want to use our guided digital ESRS end-to-end templates to get a head start.

The Commission has updated ESRS 1 – and the adjustments matter.

From a stricter materiality filter to new guidance on top‑down assessments, clearer rules on what can be omitted, a new value‑chain cap aligned with the voluntary standard, strengthen transparency around omissions, and new exemptions for investment managers under fiduciary duty, these adjustments make ESRS reporting more focused.

For companies, this means less noise, more relevance, and a clearer path to audit‑ready sustainability reporting.

If ESRS preparation is on your agenda, this overview will help you understand what’s changed – and why it matters for your 2026 reporting cycle.

Read the full article for the key takeaways and practical implications. 👇

Overview of the Key Changes

The European Commission has introduced a series of targeted adjustments to ESRS 1, refining how undertakings determine materiality, report value‑chain information, and apply exemptions. Below is a synthesis of the most significant updates.

1. Reinforced Materiality Filter and Prohibition of Non‑Material Disclosures

A new clarification confirms that undertakings must not disclose non‑material information, whether prescribed by an ESRS Disclosure Requirement or arising from entity‑specific disclosures. This strengthens the materiality filter and explicitly prevents “over‑reporting” that could obscure relevant information.

2. New Guidance on “Informed Assessments”

A new Application Requirement (AR 8) explains that informed assessments are the reasonable evaluations made by the category “other users of general-purpose sustainability statements” when forming decisions about the undertaking. This addition clarifies the role of non‑financial users – business partners, social partners (trade unions and employer organisations), civil society and NGOs – in the materiality logic.

3. Clarified Expectations for the Top‑Down Materiality Approach

The Commission adds explanatory guidance confirming that a top‑down approach can avoid unnecessary work by allowing undertakings to conclude on materiality at topic level without assessing every individual impact, risk, or opportunity. However, a more granular assessment is required when it could change the materiality conclusion.

4. Clarification on the Level at Which Materiality Is Assessed

A new AR (AR 16) explains that the level of materiality assessment is distinct from the level of aggregation for reporting. This separation ensures that undertakings can assess materiality at one level (e.g., topic or geography) while reporting at another, depending on what best supports faithful representation.

5. New Rules for Undertakings Managing Investments Under Fiduciary Duty

Two new ARs (AR 17 and AR 37) introduce an important exemption:

• If an undertaking manages investments on behalf of clients under fiduciary duty and does not retain risks or rewards of ownership,
  • it is not expected to assess impacts, risks, and opportunities related to those investments;
  • nor is it expected to provide value‑chain data on them.

This reduces the reporting burden for asset managers operating under strict fiduciary mandates.

6. Introduction of a New Paragraph on the Value‑Chain Cap

A new paragraph (66) explains how undertakings must apply the value‑chain cap when requesting information from protected undertakings in their value chain. Key points include:

• The cap covers disclosures marked as “necessary” in both the basic and comprehensive modules of the voluntary standard.
• The cap differs for undertakings above or below 10 employees.
• Disclosures marked “voluntary”, “consideration when reporting sector information”, or “necessary if applicable” are not included in the cap.
• The limitation applies equally to non‑EU undertakings in the value chain.

This addition aligns ESRS 1 with the forthcoming voluntary standard and clarifies the legal boundaries of information requests.

7. Complete Rewrite of Section 7.7 on Omission of Information

The Commission has substantially rewritten the rules governing when information may be omitted. The revised section:

• Defines four categories of information that may be omitted: (a) commercially sensitive information, (b) trade secrets, (c) classified information, (d) information protected by other EU or national laws.
• Requires undertakings to disclose the use of each omission.
• Requires reassessment at each reporting date.
• Adds an AR clarifying that non‑EU undertakings’ lighter reporting obligations cannot justify omissions.

This rewrite strengthens transparency while preserving legitimate protections.

8. Additional Clarifications on Anticipated Financial Effects

A new AR explains that:

• Reporting anticipated financial effects will often involve estimates.
• Revisions to estimates do not automatically constitute reporting errors.
• The omission rules in Section 7.7 also apply to anticipated financial effects.

This provides comfort to preparers and aligns ESRS with financial‑reporting logic.

Overall Impact of the Commission’s Amendments

The changes introduced by the European Commission:

• Reinforce the materiality filter, reducing unnecessary disclosures.
• Clarify expectations for top‑down assessments, value‑chain reporting, and the use of estimates.
• Introduce targeted reliefs for investment managers under fiduciary duty.
• Align ESRS 1 with the upcoming voluntary standard and the Accounting Directive.
• Strengthen transparency around omissions while protecting sensitive information.

The Commission’s updates to ESRS 1 sharpen the rules and make compliance more focused. For companies, the priority now is to tighten their materiality process, structure value‑chain requests, and apply omission rules with clear justification.

Strengthened guidance on top‑down assessments, estimates, and fiduciary‑duty exemptions gives organisations room to streamline their work – provided they document decisions and maintain traceability.

In practice, this means building a controlled, well‑evidenced ESRS workflow that avoids unnecessary disclosures, protects sensitive information, and ensures consistent, audit‑ready reporting year after year.

ESRS 1 Is Evolving – Cleerit Gets You Ready

These changes make ESRS reporting more focused – but also more demanding in terms of structure, documentation, and traceability. Cleerit is designed precisely for this.

The solution integrates the full ESRS logic – from materiality assessment and governance to ESRS compliant sustainability reporting – so you can move from interpretation to execution with confidence and ensure your disclosures flow directly into the right ESRS datapoints.

If you’d like to explore how Cleerit can support your ESRS preparation, just reach out >>

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Source: https://ec.europa.eu/info/law/better-regulation/have-your-say/initiatives/16775-Revised-European-sustainability-reporting-standards_en

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Stay tuned for more CSRD, ESRS and VSME insights on our LinkedIn page >>

Today the European Commission published the Draft Delegated ESRS Regulation, open for feedback until 3 June 2026.

The revised introduce minor targeted but meaningful changes to IRO and PATM (GDR) disclosures. The updates increase precision and streamline structure.

🌿 ESRS IRO & PATM: What Changed – and What It Means for Preparers

IRO Disclosures – Clearer, More Action‑Oriented

Most IRO requirements remain stable, but the Commission strengthens precision and action language:

• “Responded” changed to “Addressed” when describing how undertakings manage impacts, risks and opportunities. This shifts the emphasis from reaction to action‑oriented management, aligning with OECD/UNGP due‑diligence language.
• Exemption logic clarified: Instead of “cannot provide” the Commission uses “determines it need not provide”. This reframes omissions as reasoned determinations, not inability – raising the bar for justification.

PATM (GDR) – Structural Alignment & Due‑Diligence Upgrade

This is where the Commission introduces the most structural improvements.

• Policies (GDR‑P) – Expanded due‑diligence verbs: prevent, mitigate, bring to an end, minimise, remediate (instead of the narrower prevention/mitigation/remediation), aligned with UNGP/OECD.
• Actions (GDR‑A) – Scope and timeframe split into separate datapoints. Clearer structure, easier auditability.
• Targets (GDR‑T) – Restructuring: the Commission separates methodologies, legal requirements and scenarios into distinct datapoints. Improves transparency and aligns with climate/scenario‑based reporting.
• Metrics (GDR‑M) – Clarified that planned improvements to value chain data must be disclosed if such actions exist, now avoids implying that actions always exist. No change in substance, but expectations are clearer.

What This Means for Preparers

• Increased precision – ambition is not decreasing
  • The Commission’s edits make requirements more precise, more auditable, and more aligned with global due‑diligence frameworks.
• Prepare for structured, modular reporting
  • Explicit references to GDR‑P, GDR‑A, GDR‑T, GDR‑M signal a shift toward a modular, repeatable architecture.
  • Good for tooling and comparability – but it requires early preparation and a move away from high‑level ESG storytelling.
• Exemptions now require explicit justification
  • Expect auditors to challenge unsupported omissions.
• Supplementary information is now explicitly exceptional
  • It must be clearly labelled, justified, and must not obscure mandatory disclosures.
  • This is a direct warning against narrative-heavy reporting that dilutes required content.

The message is clear: start preparing now

The Commission’s refinements make one thing obvious: companies that wait will struggle. Expectations are firmer, structure is clearer, and interpretive flexibility is shrinking.

If you haven’t begun aligning your #strategy, #governance, and data model with the revised  #IRO and  #PATM requirements, now is the moment.

IRO, policy, target, action templates in Cleerit

We have updated the IRO-PAT templates in Cleerit. When using these templates correctly your disclosures will be compliant and can be automatically inserted in the corresponding ESRS datapoints. Contact us to get started >>>

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Source: https://ec.europa.eu/info/law/better-regulation/have-your-say/initiatives/16775-Revised-European-sustainability-reporting-standards_en

The Commission’s draft Sustainability reporting standard for voluntary use is also available here: https://ec.europa.eu/info/law/better-regulation/have-your-say/initiatives/17232-Sustainability-reporting-standard-for-voluntary-use_en

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Stay tuned for more CSRD, ESRS and VSME insights on our LinkedIn page >>

Den svenska utredningen om genomförandet av ändringarna i #CSRD (SOU 2026:27) föreslår att EU:s #Omnibus I‑lättnader införs så snart som möjligt:

▪️Våg 1‑bolag: från räkenskapsår som börjar 1 jan 2026
▪️Våg 2‑bolag: från räkenskapsår som börjar 1 jan 2027

Företag som inte längre uppfyller de nya gränsvärdena slipper lagstadgad hållbarhetsrapport för räkenskapsåret 2026. Inga svenska särregler föreslås – genomförandet sker i linje med EU‑rätten.

Nya gränsvärden för rapporteringsplikt

Ett företag (eller moderföretag i en koncern) omfattas endast om det under två år i rad har:

▪️> 1 000 anställda, och
▪️> 4,9 mdkr i nettoomsättning

Detta ersätter dagens regler och den tidigare vågindelningen (inkl NFRD‑baserad rapportering). Börsnoterade små och medelstora företag faller därmed ur scope.

Utredningen bedömer att endast 150–200 svenska företag kommer att omfattas framöver. Samtidigt väntas vissa företag fortsätta rapportera frivilligt.

Tillgången till hållbarhetsinformation beräknas dock minska, vilket kan påverka investerare, sparare och civilsamhället negativt.

Dotterföretag, koncerner och tredjelandsföretag

▪️Dotterföretag omfattas inte om koncernen redan rapporterar enligt #ESRS eller likvärdiga standarder.

▪️De ska dock upplysa om detta i förvaltningsberättelsen och länka till moderföretagets rapporter.

▪️Filialer till tredjelandsföretag blir rapporteringspliktiga först vid > 4,9 mdkr i EES‑omsättning och > 2,2 mdkr i filialomsättning.

▪️Finansiella holdingföretag vars dotterföretag har affärsmodeller och verksamhet som är oberoende av varandra blir inte rapporteringspliktiga.

Värdekedjan och skyddade företag

▪️Ett företag i värdekedjan med ≤ 1 000 anställda betraktas som skyddat företag.

▪️Det kan därmed vägra att lämna information som ett rapporterande företag begär för sin hållbarhetsrapportering, om uppgifterna går utöver de frivilliga standarder som EU väntas fastställa senast den 19 juli 2026.

👉 Begränsningen gäller när information efterfrågas för att uppfylla kraven i hållbarhetsrapporteringen – inte när information begärs som del av företagets ordinarie leverantörsstrategi.

👉 Den europeiska centralbanken (ECB) rekommenderar i sitt yttrande (feb 2026 sid. 13) att företag som inte längre omfattas av CSRD använder ESRS för sin frivilliga rapportering.

▪️Rapportering om värdekedjan kan undantas i tre år om information saknas – men det rapporterade företaget måste redogöra för sina försök att få fram den.

Revision

Revisorsinspektionen föreslås få möjlighet att godkänna revisorer och revisionsföretag från tredjeland för att granska hållbarhetsrapporter i Sverige – under förutsättning att kraven på granskningen och på revisorn är likvärdiga med svensk rätt.

Tredjelandsrevisorer ska kunna godkännas redan nu – så länge de lämnar in vissa uppgifter. Från och med räkenskapsår 2031 krävs full likvärdighet med svensk rätt.

Remisstid

Förslagen är nu ute på remiss till 21 augusti 2026.

Källa: https://regeringen.se/rattsliga-dokument/statens-offentliga-utredningar/2026/04/sou-202627/

The below document published recently by world’s biggest individual investor, NBIM, is a must read for any board member and top manager — as nature is moving up the investor agenda.

NBIM stresses that these expectations are based on their “beliefs about what contributes to long-term value creation and sound risk management”.

Norges Bank Investment Management (NBIM) — holding 2.3% of all listed European companies — is effectively redefining financial materiality

The document sets out how NBIM expects companies to manage environmental and social matters, including nature related impacts, dependencies, risks, and opportunities.

It is not soft guidance, NBIM writes. “It is a de facto global standard for nature‑related governance.”

It includes board‑level oversight requirements, policies, time‑bound targets and action plans, as well as engagement and potential divestment for non‑compliance.

“The degradation of land, freshwater systems, and marine environments all affect the long-term value of companies in our portfolio. The financial risks … are already apparent and are likely to increase over time.

Companies face risks when natural resources they depend on become scarce or degraded, and when their environmental impacts lead to regulatory action, legal liability, operational restrictions or reputational risks.

Evolving trends in consumer demands and availability of natural resources will also present opportunities as new markets are created.

We expect companies to address these topics in a manner meaningful to their business model and wish to support them in their efforts.

Our expectations are primarily directed at company boards.

Boards should understand the broader environmental and social consequences of company operations, taking into account the interests of relevant stakeholders.

They must set their own priorities and account for the associated outcomes.

Companies should pursue relevant opportunities and address significant risks.

They should report financially material information to investors, and broader impacts as appropriate.

Boards should effectively guide and review company management in these efforts.

Our expectations follow a logical implementation flow from strategic oversight to implementation.

The core expectations establish the foundational governance and strategic requirements that boards and senior management should address.”

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An unparalleled reach across markets and sectors

NBIM manages Norway’s sovereign wealth fund, set up in the 1990s to invest revenues from the country’s oil and gas industry.

The fund, the largest of its kind in the world, currently has a value of just over $2 trillion.

It invests in more than 7,200 companies across 60 countries and has stakes in around 1.5% of the world’s publicly listed stocks with holdings including a 1.3% stake in Nvidia, a 1.2% stake in Apple and a 1.3% stake in Microsoft.

This gives NBIM unparalleled reach across markets and sectors.

Where to start to meet investor expectations?

By adopting the ESRS 2.0 reporting standards and associated governance processes.

If you have not yet participated in our ESRS 2.0 training, offered free of charge, you are welcome to get in touch: https://cleeritesg.com/index.php/how-can-we-help/

Sources :

https://www.nbim.no/en/responsible-investment/our-expectations/climate-and-nature/nature/

https://www.nbim.no/contentassets/5fce0e1e7e15449ca986ac1cd26d7e0f/nature-expectations-2026.pdf

🔎 What the financial and supervisory authorities expect from the revised ESRS

When the European Commission adopts the delegated acts on the ESRS, it must consider EFRAG’s draft (December 2025) and request the opinions of a wide range of EU bodies — including ESMA, EBA, EIOPA, the ECB, the European Environment Agency, the EU Agency for Fundamental Rights (FRA), the Committee of European Auditing Oversight Bodies and the Platform on Sustainable Finance.

Below is a short overview of the ECB, EBA, ESMA and EIOPA opinions — all of which shed light on the sustainability information that financial markets need, and the expectations placed on companies, banks and insurers.

You can download a more comprehensive summary here: Summary of ECB, EBA, ESMA and EIOPA opinions on simplified ESRS 05-03-2026

🔹 Digitisation and usability

ESMA emphasises that effective digital tagging is essential for the usability of sustainability information. Users must be able to identify and retrieve key data efficiently.

🔹 Concerns about cumulative reliefs

All authorities highlight that the accumulation of relief measures risks undermining the CSRD’s objective: creating a reliable, standardised data ecosystem that enables benchmarking, risk differentiation and comparability.

🔹 Permanent reliefs and distorted incentives

They warn that several permanent reliefs could create incentives for undertakings to omit relevant information or delay efforts to improve methodologies and data access. This would weaken the integrity and comparability of disclosures — and increase greenwashing risks.

🔹 Competitiveness and alignment with ISSB

In many areas, the new ESRS reliefs go beyond those in the IFRS ISSB standards, with potential negative consequences for EU companies’ competitiveness and access to global financial markets.

🔹 Reliefs must remain exceptional

The ECB recognises that companies may need initial flexibility while building data systems and estimation methods. But it stresses that reliefs must remain exceptional, not become the norm.

🔹 Progressive capability‑building

For the EBA, once impacts, risks and opportunities (IROs) are identified, undertakings should progressively equip themselves to provide the required ESRS information.

🔹 Avoiding long‑term data gaps

All authorities agree: it is essential to avoid indefinite data gaps and to maintain incentives for companies to start collecting data and improving coverage and quality.

🔹 Assurance implications

ESMA notes that permanent reliefs will require additional judgement from assurance providers and more documentation from preparers — potentially increasing the reporting burden.

👥 FRA’s perspective

In addition, the EU Agency for Fundamental Rights (FRA) issued an opinion focused on safeguards for people adversely affected by corporate activities. FRA warns that several changes may make severe or systemic human rights impacts less visible — especially those occurring deep in value chains or affecting marginalised groups.

FRA’s full opinion is particularly relevant for HR, sustainability and compliance professionals: https://fra.europa.eu/en/news/2026/fra-issues-legal-opinion-proposed-simplified-european-sustainability-reporting-standards

Link to the Omnibus I directive: Directive – EU – 2026/470 – EN – EUR-Lex