EFRAG (European Financial Reporting Advisory Group)

EFRAG (European Financial Reporting Advisory Group) is the independent technical organisation that advises the European Commission on financial and sustainability reporting. Since the adoption of the Corporate Sustainability Reporting Directive (CSRD) in 2022, EFRAG has been responsible for developing the European Sustainability Reporting Standards (ESRS) that put it into practice.

Origin and mandate

EFRAG was created in 2001 to advise the European Commission on international financial accounting standards (IFRS). With the CSRD, its mandate expanded to cover sustainability standard-setting, and its governance was strengthened to involve companies, investors, civil society and regulators in the standard-setting process.

What EFRAG does

• Drafts the ESRS: prepares and revises the draft standards that the European Commission later adopts through delegated acts.
• Publishes implementation guidance: non-binding guidance documents that help companies interpret the ESRS, for example on double materiality assessment or value chain reporting.
• Supports simplification work: contributes technical input to the EU Omnibus Simplification Package, including the review of the ESRS aimed at reducing reporting burden.
• Works on interoperability: coordinates with the GRI Standards and the ISSB to reduce duplication between reporting frameworks.

Why it matters for your company

EFRAG does not enforce compliance. That responsibility sits with the European Commission and national regulators. Its technical publications are the main reference for interpreting how to apply the ESRS: FAQs, sector guidance and drafts of upcoming revisions. Following EFRAG's publications helps companies anticipate regulatory changes, such as those introduced through the ESRS simplification process launched in 2025.

At Manglai we track EFRAG's publications closely to keep our platform aligned with the current ESRS and help you prepare sustainability reporting that meets EU requirements. Discover how Manglai can help you.