Regulatory Alerts2026-01-01
Opinion on the draft simplified European Sustainability Reporting Standards (ESRS)
The European Banking Authority issued this opinion on the draft simplified European Sustainability Reporting Standards to ensure that data reduction efforts do not compromise financial stability or risk management capabilities. The EBA warns that permanent reliefs for quantitative disclosures, such as those based on undue cost or effort, risk creating distorted incentives and long-term data gaps that hinder accurate ESG risk pricing. Consequently, the Authority urges the Commission to impose strict three-year time limits on these reliefs to safeguard the integrity, comparability, and interoperability of sustainability reporting with global standards.
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