European Financial Reporting Advisory Group (EFRAG) has announced the release of an updated Compilation of Technical Explanations, featuring 64 new additions to assist stakeholders in navigating the European Sustainability Reporting Standards (ESRS). With these updates, the compilation now includes 157 explanations issued between January and November 2024, providing comprehensive guidance on key technical queries.
The latest update includes a detailed mapping of sustainability matters. These additions are part of EFRAG’s ongoing effort to support preparers and stakeholders in effectively implementing the ESRS. EFRAG serves as a technical adviser to the European Commission, providing non-authoritative guidance in the form of Implementation Guidance and Explanations. The newly updated compilation organises the Explanations into thematic chapters—cross-cutting, environmental, social, and governance—aligned with the ESRS framework.
To enhance accessibility, the compilation includes hyperlinks to the text of individual ESRS standards, along with any associated corrigenda. Appendix III of the Compilation of Explanations includes a log of 133 questions that were categorised as ‘already answered.’ These questions were addressed through existing explanations or implementation guidance, providing users with clarity, and reducing duplication of responses. EFRAG has indicated that the preparation of new explanations will continue in accordance with EFRAG’s due process. However, further releases are planned for 2025 only after the completion of the 2024 sustainability reporting cycle. This approach ensures that explanations remain relevant and aligned with the requirements during the reporting process.
In late 2023, EFRAG launched its ESRS Q&A Platform to respond to technical questions and assist stakeholders in adopting the ESRS, which was introduced as a Delegated Act. To date, the platform has received 777 questions, of which 595 were deemed relevant. Approximately 49% of these have been addressed through the Compilation of Explanations or Implementation Guidance. Explanations specifically clarify how existing ESRS content addresses technical queries, guiding users to relevant sections of the standards. While these explanations are final upon release, they are not authoritative or issued as Delegated Acts.
