EFRAG

EFRAG, the European Financial Reporting Advisory Group, is the EU advisory body responsible for developing the European Sustainability Reporting Standards (ESRS): the technical standards that define what companies must disclose under the Corporate Sustainability Reporting Directive (CSRD). 

An important distinction: EFRAG is an advisory body, not a legislative one. It develops the technical content of the ESRS through a consultative process involving companies, investors, civil society, and other stakeholders. The EU Commission and Parliament then formally adopt those standards, at which point they become legally binding for companies in scope.

EFRAG also plays an ongoing role in maintaining and updating the ESRS, engaging with international standard-setters such as the ISSB (International Sustainability Standards Board) to promote interoperability between European and global sustainability reporting frameworks.