The European Financial Reporting Advisory Group has called on companies across the European Union to actively contribute to shaping a new voluntary sustainability reporting standard aimed at simplifying ESG disclosures for a broader range of businesses.

This initiative is designed to support companies that are not directly subject to mandatory frameworks like CSRD but still face increasing pressure from stakeholders, investors, and value chains to disclose sustainability data. The proposed voluntary standard is expected to provide a streamlined and proportionate approach to ESG reporting, particularly benefiting SMEs and non-listed companies.

EFRAG emphasized that industry participation is critical to ensure the framework is practical, relevant, and aligned with real-world reporting capabilities. By gathering feedback from companies, the goal is to create a flexible standard that reduces reporting complexity while maintaining transparency and comparability.

The move reflects a broader shift in the EU’s sustainability strategy—recognizing that not all organizations require the same level of reporting rigor, yet still need structured guidance to meet growing ESG expectations.

As sustainability reporting continues to expand beyond large corporations, this initiative could play a key role in making ESG disclosure more accessible, scalable, and aligned with market needs.