FRA is proud to have director Viktor Josefsson deeply involved in the secretariat to the European Financial Reporting Advisory Group (EFRAG) Project Task Force on European Sustainability Reporting Standards (PTF-ESRS).
Setting a new standard
Following the European Commission's adoption of a legislative proposal for a Corporate Sustainability Reporting Directive (CSRD) in April 2021, the European Commission designated EFRAG to draft the framework for ESG reporting standards. During his secondment to the secretariat of the project task force, Viktor is working on developing reporting standards with regard to governance.
FRA is thrilled to directly support this important initiative that is expected to impact 50,000 entities once the reporting standards are adopted. It is a significant step towards championing and standardizing ESG reporting internationally. Our firm has supported numerous international matters where our unique blend of expertise has helped get to the bottom of and remediate failures in corporate governance inherently linked to social and environmental metrics and concerns (read more about FRA's ESG credentials here).
We have followed with great interest the general global trend towards putting sustainability reporting on equal footing with established financial reporting standards, and it is a privilege to support EFRAG and Viktor in turning this debate into concrete guidance.
About EFRAG
EFRAG's mission is to serve the European public interest by developing and promoting European views in the field of financial reporting and ensuring that these views are properly considered in the IASB's standard-setting process and in related international debates. EFRAG ultimately provides advice to the European Commission on whether newly issued or revised IFRS Standards meet the criteria of the IAS Regulation for endorsement for use in the EU, including whether endorsement would be conducive to the European public good. (Source: efrag.org)
Developments to Date
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- EFRAG launches a public consultation on the draft European Sustainability Reporting Standards (ESRS) Exposure Drafts developed by the Project Task Force (PTF-ESRS), of which FRA’s Viktor Josefsson was a member.
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- EFRAG reports on three key achievements to be completed by the end of April 2022: the organisation of its Sustainability reporting pillar, the finalisation of a first set of exposure drafts, and the launch of the public consultation on the exposure drafts.
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- Working papers are published in batches online as preparatory, work-in-progress documents providing “information on the conceptual thinking adopted in the elaboration of the draft standards, the progress and considerations so far, and the direction taken on the proposals for disclosure requirements”.
While not yet for public consultation, these working papers show progress on topics including:
- Overall architecture and structure of the standards (See batch 1 from Jan)
- Pollution, water and marine resources, resource use and circular economy (see second release)
- Sustainability statements, workers and work-related rights, biodiversity and ecosystems (see third release in March)
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- The Project Task Force publishes a status report five months into the elaboration phase of the draft standards.
On 4 November 2021, EFRAG participated at a European Commission side event to COP26 on EU Sustainability Reporting Standards and the future of sustainability reporting.
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- FRA and EFRAG confirm the secondment of director Viktor Josefsson to the project task force, dedicating half his time in-kind alongside 30+ other experts and industry colleagues from across the continent.
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- EFRAG is tasked to develop draft standards, “using proper due process, public oversight and transparency, and with the expertise of relevant stakeholders”.
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- European Commission adopts a legislative proposal for a Corporate Sustainability Reporting Directive (CSRD), including a provision that companies under scope would have to report in compliance with a set of European sustainability reporting standards (ESRS).
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- In response to a request by the European Commission, EFRAG published two reports with the results of their extensive preparatory work on key governance and standard-setting matters related to sustainability reporting.
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