Patrick de Cambourg, Chair of the EFRAG Project Task Force, told ESG Investor that the formation of the EU sustainability reporting standards will be collaborative.
With European corporates subject to new disclosure rules from January 2024, it’s a race against the clock to develop European Sustainability Reporting Standards for use by the end of 2022, according to Patrick de Cambourg, Chair of the European Financial Reporting Advisory Group’s (EFRAG) Lab Project Task Force.
The updated Non-Financial Reporting Directive (NFRD), renamed the Corporate Sustainability Reporting Directive (CSRD) in announcements made earlier this week, provides a strong foundation for the development of these EU Sustainability Reporting Standards, he told ESG Investor.
EFRAG will be working with existing reporting frameworks to develop these standards, which could be introduced as soon as 18 months from now, de Cambourg says. This timeline is seen as necessary as firms will need access to the standards to report on their 2023 activities.
“Within the draft CSRD proposal, there is a clear statement that there will be EU sustainability reporting standards,” de Cambourg said.
Currently, NFRD requires large public-interest entities with more than 500 employees and a net turnover of more than EUR 40 million to include a non-financial statement in their financial reports on a series of ESG-related factors.
In its place, CSRD aims to extend the scope of companies falling under its reporting requirements to all large companies and listed companies. Qualifying corporates must mandatorily include … [continues]
Read the full article on Regulation Asia’s sister publication, ESG Investor.