The European Financial Reporting Advisory Group (EFRAG) is a private, not-for-profit association established to provide technical advice to the European Commission on financial reporting and sustainability standards. Founded in 2001, EFRAG plays a pivotal role in shaping financial reporting practices in the European Union and has been instrumental in the development of the European Sustainability Reporting Standards (ESRS) under the Corporate Sustainability Reporting Directive (CSRD).
Key roles and responsibilities of EFRAG include:
- Developing Sustainability Reporting Standards: EFRAG is responsible for drafting and maintaining the ESRS to ensure that companies disclose relevant, reliable, and comparable sustainability information in line with EU policies.
- Providing Technical Advice to the European Commission: EFRAG advises the European Commission on the adoption of International Financial Reporting Standards (IFRS) within the EU and on the development of sustainability reporting standards.
- Engaging with Stakeholders: EFRAG collaborates with a diverse range of stakeholders, including businesses, regulators, standard-setters, and civil society, to ensure that reporting standards are practical, comprehensive, and meet the needs of users.
- Promoting Transparency and Accountability: EFRAG aims to improve the transparency and accountability of corporate reporting within the EU, helping businesses align with the EU's sustainability and financial reporting objectives.
EFRAG's contributions are critical to advancing corporate transparency and promoting sustainable finance within the EU, helping businesses transition towards more sustainable and resilient operations.
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