EFRAG Unveils EU Sustainability Reporting Standards for Non‑EU Entities
Non‑EU firms with substantial EU operations must now anticipate compliance with EFRAG‑draft sustainability reporting rules.
EFRAG’s latest proposal introduces sustainability reporting standards for non‑EU undertakings that maintain significant activities within the European Union. Under the draft framework, such entities will be required to disclose key ESG metrics—ranging from greenhouse gas emissions and water usage to supply‑chain transparency—in a format aligned with EU sustainability reporting requirements. The move is designed to harmonise reporting across borders, ensuring non‑EU firms face comparable disclosure obligations to their EU counterparts. For counsel advising cross‑border companies, the first‑time reporting deadline under the proposed regimes is slated for 2028, with a phased implementation structure that allows firms to build internal reporting capabilities. Firms should assess current ESG data infrastructure, identify gaps in metric coverage, and consider engaging external auditors familiar with EFRAG standards to prepare robust disclosures ahead of the 2026 enforcement window.