22 December 2021

Summary of the Comments on Public Consultation on Due Process Procedures for EU Sustainability Reporting Standard-Setting

On 22 November 2021, the European Financial Reporting Advisory Group (EFRAG) published a Summary of the 38 comments received on its public consultation on the proposed due pro-cess procedure for EU Sustainability Reporting Standard-Setting. The comments are shown without going into possible changes to the proposed due process.

In principle, the declare aim of setting up a transparent standard-setting procedure with a min-imum of obligatory steps is supported. The majority of the participants in the consultation rec-ognise the procedure for setting up the process with the principles of transparency and publi-cising the consultation proposed in the consultation document as appropriate for open and transparent standard-setting.

Proposals of the Participants in the Consultation

However, the participants in the consultation also make numerous proposals:

  • With respect to transparency, it is proposed to hold the working group meetings in public. Moreover, at the moment there is uncertainty about the procedure and duration of the tran-sitional phase and the decision-making processes.
  • Although the urgency of issuing a first set of reporting standards by EFRAG can be seen, reservations were expressed with respect to the ambitious timetable.
  • The EU Sustainability Reporting Standards should be closely aligned to existing interna-tional standards. And, within the context of the due process, the focus should be on linking financial and sustainability reporting.
  • Other proposals can be found in the summary.