On 25 June 2020 the European Commission issued a request for technical advice​​ mandating EFRAG to undertake preparatory work for possible EU non-financial reporting standards in a revised Non-Financial Reporting Directive.

The work was carried out by the European Lab Project Task Force on preparatory work for the elaboration of possible EU non-financial reporting standards (PTF-NFRS) appointed by the European Lab Steering Group on 1 September 2020, and its report Proposals for a relevant and dynamic EU sustainability reporting standard-setting was published on 8 March 2021.

The PTF-NFRS incorporated a balanced representation of a broad range of stakeholders with a legitimate interest in non-financial information, spanning the public sector, the private sector, SMEs and civil society from across the EU, in line with the European Commission's request for technical advice​.​

On 21 April 2021 the European Commission adopted a legislative proposal for a Corporate Sustainability Reporting Directive (CSRD) which would oblige companies under scope to report in compliance with European sustainability reporting standards adopted by the European Commission as delegated acts. Under the proposed CSRD, EFRAG would develop draft standards, using proper due process, public oversight and transparency, and with the expertise of relevant stakeholders.

The timeline contained in the proposal assumes the elaboration of draft sustainability reporting standards in parallel to the legislative process of the proposed CSRD. To meet this timeline, Commissioner McGuinness, in a letter dated 12 May 2021, has requested EFRAG to (i) proceed with relevant governance reforms, and (ii) put in place interim working methods to start the technical work immediately building on the membership, leadership, expertise and recommendations of the PTF-NFRS.

As a consequence, the PTF-NFRS established in September 2020, is now called the Project Task Force on European sustainability reporting standards (PTF-ESRS)​.