Sustainability reporting standards roadmap

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

The EC also issued a separate ad personam mandate, inviting EFRAG Board President and European Lab Steering Group Chairman, Jean Paul Gauzès, to consider the possible need for changes to the governance and financing of EFRAG, if it were to be entrusted with the development of European non-financial reporting standards under a revised NFRD. For more information in respect of this ad personam governance mandate see the relevant project page​​. 

The project on the preparatory work for the elaboration of possible EU non-financial reporting standards is operated within the European Corporate Reporting Lab @EFRAG (European Lab)​.

The preparatory work was carried out by a multi-stakeholder Project Task Force (PTF-NFRS) appointed by the European Lab Steering Group on 1 September 2020, following a relevant call for candidates published on 17 July 2020.

The PTF-NFRS incorporates 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 EC request for technical advice. The members of the PTF-NFRS have proven expertise on the different matters covered by the NFRD and the requirements of the EC request for technical advice.​ The term of appointment of the PTF-NFRS is for the duration of the project.​

A progress report was issued by the PTF-NFRS to the EC on 6 November 2020, containing information on the status of the project and preliminary high level assessment points.

On 10 December 2020 EFRAG hosted a meeting with some of the leading international corporate reporting initiatives​ in the context of its two non-financial reporting mandates.

A series of outreach events took place between 13 and 22 January 2021, with the objective to gather stakeholders’ views from different countries on the tentative proposals of the PTF-NFRS. The associated outreach document​ was published on 11 January 2021.

The PTF-NFRS submitted its final report​ to the European Commission on 28 February 2021, proposing a roadmap for the development of a comprehensive set of EU sustainability reporting standards.

The final report​ of the PTF-NFRS was published by EFRAG on 8 March 2021, together with the report of Jean-Paul Gauzès​ proposing reforms to EFRAG's governance structure and funding, to ensure that future EU sustainability reporting standards are developed using an inclusive and rigorous process.

A second meeting with leading international sustainability reporting standard setters and other related initiatives​ was held on 22 March 2021, to present the published recommendations for the development of EU sustainability reporting standards and explore possible cooperation in a co-constructive spirit, promoting convergence and maintaining momentum.

Technical work for interim draft sustainability reporting standards

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 adopte​d by the European Commission as delegated acts.​​​

Under the proposed CSRD, EFRAG would develop draft standards, using proper due pro​​cess, public oversight and transparency, and ​with the expertise of relevant stakeholders.

The timeline contained in the proposal assumes the elaboration of draft sustainability r​eporting 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:​

1. ​reform its governance following the recommendations by Jean-Paul Gauzès in his report which were fully supported by Commissioner McGuinness, and
2. put in place interim working methods to start the technical work immediately building on the membership, leadership, expertise and recommendations of the PTF-NFRS.
   

Plenary meeting agendas