Committed to the ambitious timeline for a major step in quality sustainability reporting, EFRAG has successfully initiated the elaboration of EU sustainability reporting standards to be submitted to the European Commission. On 21 April 2021 the European Commission adopted a legislative proposal for a Corporate Sustainability Reporting Directive (CSRD). At the request of the European Commission and in parallel to the elaboration of the legislative proposal, EFRAG has already carried out extensive work on key governance and standard-setting matters related to sustainability reporting. Two reports published on 8 March 2021 provide a full account of the proposals made:
- Proposals for a relevant and dynamic EU sustainability reporting standard-setting, by the multistakeholder Project Task Force on preparatory work for the elaboration of possible EU non-financial reporting standards (PTF-NFRS), established by EFRAG in line with the European Commission’s request.
- Potential need for changes to the governance and funding of EFRAG, by Jean-Paul Gauzès on his ad personam mandate.
As a consequence, the PTF-NFRS established in September 2020, is now called the Project Task Force on European sustainability reporting standards (PTF-ESRS). The PTF-ESRS has been invited to start elaborating standards in project mode in view of passing responsibility to the EFRAG sustainability reporting bodies as soon as they have been established following the planned governance reforms.
- Objectives and milestones, in alignment with the CSRD timeline and the EFRAG governance reform timetable;
- Organisation in clusters, reflecting the target architecture proposed in the PTF-NFRS report;
- Allocation of tasks and responsibilities, consensus building and rules of engagement;
- Due process procedures (under public consultation) and templates.
Patrick de Cambourg, Chair of the PTF-ESRS, said: ‘Building on its membership, consensus building processes and report issued in February on the preparatory work to sustainability standard-setting, the Task Force is proud and committed to move to this important new step. The elaboration of the technical advice to the European Commission on EU sustainability reporting standards starts immediately with a view to progress swiftly and to hand over what will be achieved in the coming months to the sustainability reporting bodies of EFRAG as soon as established and operational.’