Roadmap for the development of a comprehensive set of EU sustainability reporting standards

The European Financial Reporting Advisory Group (EFRAG) has released the report Proposals for a relevant and dynamic EU Sustainability Reporting Standard-Setting, in the framework of the preparatory work for the elaboration of possible EU non-financial reporting standards in a revised EU Non-Financial Reporting Directive.

This report proposes a roadmap for the development of a comprehensive set of EU sustainability reporting standards. It includes 54 recommendations which do not constitute a first attempt at standard-setting, given that they are made in a context where the content of the revised Non-Financial Directive (NFRD) is not finalised. Their objective is to describe the scope and structure of future sustainability reporting standards that contribute to the achievement of the EU’s policy objectives, not to setout specific disclosure requirements, indicators or metrics. The latter is a task for the EU’s future standards-setter.

The revision of the NFRD is essential to meet the needs of users for relevant, comparable and accessible information. Sustainability reporting must therefore rapidly improve to progress alongside the equally rapidly developing EU policies in the context of the EU Green Deal, including sustainable finance. Most of these policies require more robust data about the risks that companies face in relation to sustainability matters and about their impacts on society and the environment.

Read on at EFRAG