The AMF responds to the European Commission’s public consultation on the draft European sustainability reporting standards
Executive Summary
The AMF's response to the European Commission's public consultation advocates for simplified European Sustainability Reporting Standards (ESRS) under the CSRD, emphasizing retained quality in climate reporting, interoperability with ISSB standards, and proportionality while opposing overly complex materiality assessments. This matters for compliance professionals as it signals upcoming ESRS revisions that could reduce reporting burdens but maintain investor-focused disclosures, influencing 2026-2028 sustainability statements for listed firms and financial institutions. https://www.amf-france.org/en/news-publications/news/amf-responds-european-commissions-public-consultation-draft-european-sustainability-reporting #
What Changed
- Simplified ESRS Structure: EFRAG's draft reduces mandatory datapoints by 57-71% and ESRS length by 55%, focusing on materiality, fair presentation, and quantitative data while streamlining double materiality assessments and eliminating sector-specific standards. https://www.amf-france.org/en/news-publications/news/corporate-sustainability-reporting-amfs-response-efrags-consultation-simplification-european ; https://www.iss-corporate.com/resources/blog/eu-sustainability-rules-reset-what-the-2026-changes-mean/ - Materiality Assessment: AMF opposes assessing impact materiality post-mitigation (prefers "gross" approach for relevance and consistency) but supports specifying impacts, risks, or opportunities per topic. https://www.clearygottlieb.com/news-and-insights/publication-listing/climat
What You Need To Do
- Review and refresh double materiality assessments using "gross" impacts, specifying risks/opportunities per topic
- Retain "net-zero" definitions in climate plans if used; prepare quantitative climate financial effects data (Option 1)
- Evaluate "undue costs" reliefs for non-climate metrics, documenting with time-bound justifications
- Monitor EFRAG/EC updates post-November 2025; test voluntary simplified ESRS in 2026 cycles
- Align with ESMA 2025 priorities (e
Key Dates
Compliance Impact
Urgency: Medium – Revisions offer relief (e.g., 57%+ datapoint cuts) but require proactive preparation for voluntary 2026 use and mandatory 2027/2028; critical for 2025 reporters under current ESRS/"quick fix" to avoid enforcement. Matters due to AMF/ESMA supervision ramp-up, investor demands for comparable climate data, and ISSB alignment risks if divergences grow. https://www.esma.europa.eu/esma
Who is Affected
Summary
Periodic & ongoing disclosures Sustainable Finance Regulatory developments The AMF responds to the European Commission’s public consultation on the draft European sustainability reporting standards