26 August 2022

Exposure Drafts of the European Sustainability Reporting Standards

The WPK participated in the public consultation on the Exposure Drafts of the European Sustainability Reporting Standards (ED ESRS) and commented on them on 29 July 2022. The WPK welcomes the legislative initiative of the European Union on sustainability reporting within the context of the Corporate Sustainability Directive (CSRD). It is also of the opinion that binding standards in this context can help to improve the meaningfulness of sustainability reporting with respect to its targets and to make it easier to compare.

Points of Criticism

The WPK sees these ESRS drafts as a good foundation that still needs another revision. The following points of criticism are addressed:

  • Inadequate timeframe for setting standards and the opportunity to comment,
  • Lack of SME point of view in the draft standards,
  • Risk of disclosing company internal matters and business secrets,
  • Lack of a common theme and insufficient manageability of the standards,
  • Broadly defined stakeholder group,
  • Opaque concept of double materiality,
  • Insufficient convergence with ISSB reporting standards.

The WPK hopes that its points of criticism will be considered in the further standard-setting process and will be happy to be available for an exchange of opinion.