EBA issues opinion on draft amended European sustainability reporting standards

The European Banking Authority (EBA) has issued an opinion on the draft amended European Sustainability Reporting Standards (ESRS) developed by the European Financial Reporting Advisory Group (EFRAG).

The EBA recognizes the progress made in simplifying elements of the initial standards and supports efforts to reduce reporting compliance costs. However, it highlights concerns regarding the permanence of certain reliefs and their potential impact on the quantity of reported data.

The EBA emphasizes that permanent reliefs may reduce the amount of quantitative information reported by companies, which could conflict with the European Commission’s objective to prioritize quantitative data. It also warns that such reliefs could undermine international interoperability and increase burdens on financial institutions, which may need to seek additional information from counterparties.

The EBA recommends that institutions continue analyzing sustainability risks and suggests implementing time-limits for relief measures. The opinion also notes that large, resource-rich companies within the scope of the revised CSRD should be able to meet the requirements and that reliefs without time limits could hinder international standards alignment.

The European Commission also sought opinions from ESMA, EIOPA, and ECB. This opinion is based on Article 16a(4) of Regulation (EU) No 1093/2010 and Article 49(3b) of Directive 2013/34/EU, as amended by the CSRD. EFRAG was asked to provide technical advice on simplifying the ESRS by November 2025, which it completed and published on December 3, 2025.