At the EFRAG 25th Anniversary Conference, Chiara Del Prete outlined what is becoming the new reference framework for high\u2011quality sustainability reporting in the EU. Europe is not simply implementing standards – it is building a coherent, future\u2011proof system designed to stand on equal footing with financial reporting.<\/p>\n
Europe\u2019s model starts where others hesitate: recognising that impacts and financial risks & opportunities are inseparable. Double materiality ensures reporting reflects both a company\u2019s footprint on the world and the world\u2019s effects on the company – enabling realistic, holistic and forward\u2011looking analysis.<\/p>\n
Sustainability information must meet the same qualitative bar as financial reporting: relevance, fair representation, comparability, verifiability and understandability. This is the quiet revolution – sustainability reporting is no longer \u201cextra\u2011financial\u201d but co\u2011equal corporate reporting.<\/p>\n
Environmental, social and governance matters are treated as interacting dimensions, not separate chapters. This reflects how real\u2011world impacts and dependencies unfold – and how they translate into regulatory exposure, supply\u2011chain fragilities, reputational effects or shifts in market demand, while governance determines resilience.<\/p>\n
In line with the EU\u2019s standard\u2011setting culture, ESRS remain principle\u2011based, enabling proportionality, judgement and sector\u2011specific relevance. The result is a system that is rigorous yet adaptable in a fast\u2011evolving landscape.<\/p>\n
Sustainability reporting is now the \u201csecond leg\u201d of standardised corporate reporting, structurally connected to financial statements. This strengthens connectivity, coherence and long\u2011term value understanding – anchoring sustainability firmly within the corporate reporting package.<\/p>\n
The EU framework is built to onboard other EU regulations and global frameworks (GRI, ISSB & others) through a single, coherent report. This reduces duplication, increases comparability and ensures a holistic view across reporting requirements.<\/p>\n
With digital taxonomies and AI\u2011compatible structures, sustainability reporting enters the era of machine\u2011readable, assurance\u2011ready, decision\u2011useful data – the foundation for future supervision, analytics and capital\u2011market integration.<\/p>\n
These 7 pillars show how far the EU has come: from fragmented disclosures to a coherent, interoperable, digitally ready reporting system supporting Europe\u2019s economic, environmental and social ambitions.<\/p>\n
Sustainability reporting is no longer an add\u2011on – it is a strategic, structured and globally influential pillar of corporate reporting.<\/p>\n
<\/p>\n
EFRAG\u2019s 25\u2011year milestone offered a rare moment to step back and see the full picture: a reporting system in transformation, a new governance logic, and a Europe determined to lead.<\/p>\n
From the political battles of IFRS adoption to the emergence of a fully integrated sustainability reporting system, EFRAG\u2019s 25th Anniversary Conference showed just how far Europe has come – and how much is still ahead.<\/p>\n
Sustainability reporting is now strategic and central to capital markets. Sustainability impacts, risks and opportunities are business risks and opportunities. No company can afford blind spots.<\/p>\n
I\u2019ve summarised key messages that emerged across panels and keynotes – from connectivity to anticipated financial effects, AI, interoperability, digitalisation and the future of double materiality – and where corporate reporting is heading next. \ud83d\udc47<\/p>\n
Enjoy the reading<\/p>\n
Leila Hellgren<\/p>\n
The 2026 EFRAG Conference marked more than an anniversary. It captured a turning point in Europe\u2019s corporate reporting journey – from the political battles of IFRS adoption to the emergence of a fully-fledged, interconnected system where financial and sustainability reporting stand side by side.<\/p>\n
Across panels and keynotes, one message resonated: sustainability reporting is no longer an adjunct. It is reshaping corporate reporting, governance and capital markets – and Europe intends to lead.<\/p>\n
Speakers revisited the origins of EFRAG: a time when accounting was anything but technical. As Karel Van Hulle put it, \u201caccounting is too important to be left to the accountants.\u201d<\/em><\/p>\n The early 2000s were marked by divergent national views, resistance to IFRS, and the political realisation that only an EU regulation could ensure simultaneous adoption across Member States. The 2008 financial crisis then pushed accounting rules onto the front page of the Financial Times<\/em>, revealing how standards can influence behaviour, market stability and public trust.<\/p>\n This history matters because it sets the stage for today\u2019s transformation: sustainability reporting is now just as political, consequential and contested as financial reporting once was.<\/p>\n Speakers acknowledged that sustainability reporting has become deeply intertwined with geopolitics, energy security and societal expectations. The ESRS revision – and the forthcoming Delegated Act – reflect this broader shift: not only a rethinking of the role of the economy in society, but also the recognition that corporate activity does not operate in isolation from an increasingly polarised world.<\/p>\n Supply\u2011chain disruptions, geopolitical tensions, social fragmentation and the energy transition all shape the risks companies face, and the expectations placed upon them. Sustainability reporting is therefore becoming a tool to navigate complexity, demonstrate resilience and maintain trust in a context where economic decisions are inseparable from political and societal dynamics.<\/p>\n In this contexte, Europe and the ISSB \u201chave different north stars but look in the same direction.\u201d The EU\u2019s choice to remain independent – driven by its own political goals and double materiality approach – was widely seen as the right one.<\/p>\n Interoperability is the pragmatic solution: a way to reduce duplication, support global comparability and ensure that companies can access capital markets across jurisdictions.<\/p>\n Over 40 jurisdictions have adopted ISSB standards, each with their own policy objectives. Europe\u2019s voice is heard – and increasingly influential – in this global dialogue.<\/p>\n A central theme of the conference was connectivity – the structured linkage between sustainability information and financial statements.<\/p>\n Speakers stressed that:<\/p>\n Connectivity is not consolidation. It is coherence: consistent boundaries, reconciliations, cross\u2011references and a shared narrative. As one preparer put it: \u201cIt is difficult to connect on paper what has not been connected in internal processes.\u201d<\/em><\/p>\n This is why connectivity is ultimately a governance issue<\/strong>, not a reporting one.<\/p>\n Anticipated financial effects (AFE) remain one of the most challenging areas. Practices are immature, methodologies differ, and companies fear disclosing assumptions that may change.<\/p>\n Yet investors see AFE as \u201can analyst\u2019s dream\u201d: numbers build confidence, especially when accompanied by transparent methodologies and scenario\u2011based narratives.<\/p>\n The long phase\u2011in period until 2030 reflects this complexity – and the need for learning, capacity building and cross\u2011disciplinary collaboration.<\/p>\n Digitalisation was another recurring theme. Despite lobbying to remove XBRL, S\u00e9bastien Harushimana (FCCA) stressed that research shows that AI complements structured data – it does not replace it.<\/p>\n AI can streamline reporting and enable real\u2011time analysis, but it also introduces risks:<\/p>\n Structured formats remain the backbone of reliable, machine\u2011readable reporting. And transparency about which AI models are used becomes essential.<\/p>\n No company can afford blind spots. If you truly understand your business, you also know where the vulnerabilities lie – even if speaking about them feels uncomfortable at first.<\/p>\n And if a company chooses not to disclose, investors will construct their own view from external data sources. Reporting is where companies can tell their story on their own terms.<\/p>\n A strong warning was issued to companies outside the CSRD scope: the wait\u2011and\u2011see approach is dangerous.<\/strong><\/p>\n Not understanding your impacts, risks and opportunities is a governance failure. Value\u2011chain due diligence obligations will still apply. And investors will create their own assessments if companies do not disclose.<\/p>\n Early movers gain:<\/p>\n As one speaker noted: \u201cThe topics on the CSO\u2019s table will be on the CFO\u2019s table within two to three years.\u201d<\/em><\/p>\n Several themes emerged as defining the next decade:<\/p>\n Above all, sustainability reporting is not a burden – it is a strategic tool for risk management and decision\u2011making.<\/p>\n The conference closed with a clear message: sustainability reporting and connectivity are here to stay.<\/p>\n Europe must continue learning, adjusting and balancing ambition with operational feasibility. But the direction is set: a reporting system that is relevant, reliable, connected and forward\u2011looking.<\/p>\n","protected":false},"excerpt":{"rendered":" At the EFRAG 25th Anniversary Conference, Chiara Del Prete outlined what is becoming the new reference framework for high\u2011quality sustainability reporting in the EU. Europe is not simply implementing standards – it is building a coherent, future\u2011proof system designed to stand on equal footing with financial reporting. \ud83c\udf3f 1. Double Materiality as a Cornerstone Europe\u2019s […]<\/p>\n","protected":false},"author":1,"featured_media":3231,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1,5],"tags":[],"class_list":["post-3230","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-csrd","category-esrs","post-with-thumbnail","post-with-thumbnail-large"],"_links":{"self":[{"href":"https:\/\/cleeritesg.com\/index.php\/wp-json\/wp\/v2\/posts\/3230","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/cleeritesg.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/cleeritesg.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/cleeritesg.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/cleeritesg.com\/index.php\/wp-json\/wp\/v2\/comments?post=3230"}],"version-history":[{"count":2,"href":"https:\/\/cleeritesg.com\/index.php\/wp-json\/wp\/v2\/posts\/3230\/revisions"}],"predecessor-version":[{"id":3233,"href":"https:\/\/cleeritesg.com\/index.php\/wp-json\/wp\/v2\/posts\/3230\/revisions\/3233"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/cleeritesg.com\/index.php\/wp-json\/wp\/v2\/media\/3231"}],"wp:attachment":[{"href":"https:\/\/cleeritesg.com\/index.php\/wp-json\/wp\/v2\/media?parent=3230"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cleeritesg.com\/index.php\/wp-json\/wp\/v2\/categories?post=3230"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cleeritesg.com\/index.php\/wp-json\/wp\/v2\/tags?post=3230"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}The Shift to Sustainability: A More Complex, More Political Landscape<\/h3>\n
Interoperability and the Global Landscape<\/h3>\n
Connectivity: Europe\u2019s Distinctive Contribution to Corporate Reporting<\/h3>\n
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Anticipated Financial Effects: The Next Frontier<\/h3>\n
Digitalisation and AI: Opportunity and Risk<\/h3>\n
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Sustainability Risks and Opportunities are Business Risks and Opportunities<\/h3>\n
Why Companies Should Not Wait<\/h3>\n
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The Future: A More Integrated, More Strategic Reporting System<\/h3>\n
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A System Still Evolving – But Here to Stay<\/h3>\n