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European Financial Reporting Advisory Group (EFRAG)

EFRAG is a non-profit organization that works in the public interest to work on how companies report financial and sustainability information. 

EFRAG was created in 2001 with support from the European Commission. Its members include experts from business, government, and civil society across Europe. 

What Does EFRAG Do? 

EFRAG works in two main areas: 

  1. Financial Reporting 

EFRAG plays a key role in the European Union’s process for adopting the IFRS (International Financial Reporting Standards). The organization: 

  • Reviews and comments on new IFRS standards 
  • Advises the European Commission on whether these standards should be adopted in the EU 
  • Represents European views in global accounting discussions 

   2. Sustainability Reporting 

Since 2022, EFRAG is also in charge of drafting the European Sustainability Reporting Standards (ESRS), which companies must follow under the Corporate Sustainability Reporting Directive (CSRD). EFRAG: 

  • Prepares detailed drafts of the ESRS 
  • Organizes public consultations 
  • Sends final recommendations to the European Commission