Japan urges EFRAG to ease sustainability reporting rules for non-EU firms
Japan's government has sent EFRAG a comment letter on its draft ESRS-40a, a European sustainability reporting standard for companies outside the EU. The letter, dated 28 October 2026, was published by Japan's Financial Services Agency on 30 October 2026. It asks EFRAG to let non-EU firms refer to reports built on ISSB-aligned standards and to offer a simpler option under the draft's mixed approach.
What does it mean?
Companies based outside Europe that must follow the EU's sustainability rules may get a lighter reporting load if Japan's request is accepted. Japan wants them to be able to lean on reports made under global standards that already work the same way, instead of writing everything again.
Who is affected?
Non-EU companies that would have to publish sustainability reports under ESRS-40a.