Ad personam governance mandate
- Hocine Kebli, Saskia Slomp
Jean-Paul Gauzès has published his final report on his ad personam mandate, proposing reforms to EFRAG’s governance structure to ensure that future EU sustainability reporting standards are developed using an inclusive and rigorous process., if it were to become the EU non-financial standard setter.
The publication of the report is accompanied by feedback statement summarising the main feedback he received from his second public consultation.
Potential need for changes to the governance and funding of EFRAG||Jean-Paul Gauzès’ second public consultation on his ad personam mandate|
|Final report of Jean-Paul Gauzès||Feedback statement|
The European Commission is preparing a legislative proposal for the revision of the EU Non-Financial Reporting Directive (NFRD). In parallel, the European Commission has mandated EFRAG to undertake preparatory work for the elaboration of possible EU non-financial reporting standards. This mandate is being carried out by a multi-stakeholder European Lab Project Task Force.
In addition, Executive Vice-President Valdis Dombrovskis has invited Jean-Paul Gauzès, on an ad-personam basis, to provide recommendations on potential changes to the governance and financing of EFRAG, in case it were entrusted with the development of possible EU non-financial reporting standards. His invitation is accompanied by an Annex that provides the context within which the question of possible European reporting standards under the NFRD are being considered.
The final recommendations to the European Commission were initally expected by the end of January 2021. The deadline was subsequently extended to the third week of February 2021. The ad personam mandate to Jean-Paul Gauzès, EFRAG Board President, can be found here.
On 25 June 2020 the European Commission issued an ad personam mandate to Jean-Paul Gauzès requesting recommendations for possible changes to EFRAG's governance and financing if it were to become the EU sustainability reporting standard setter.
On 1 October 2020, Jean-Paul Gauzès invited all interested stakeholders to contribute views related to his ad personam mandate. The letter and its accompanying questionnaire, can be found here. About 50 responses were received to that first consultation and have been carefully considered. Various additional contributions in different forms have also been considered and have helped to develop the preliminary proposals for possible changes to the governance and funding of EFRAG included in this second public consultation.
The input was considered in preparing a progress report with preliminary proposals, which was submitted to the European Commission on 6 November 2020 (available here).
On 30 November 2020, Jean-Paul Gauzès published a Consultation Document. seeking input on the proposals for changes to the governance structure of EFRAG and to obtain input on a number of matters that were not, or not fully, addressed in the first consultation and to make the proposals operational. The consultation is open until 6 January 2021.
On 10 December 2020, EFRAG hosted a meeting with some of the leading international corporate reporting initiatives in the context of the two non-financial reporting mandates: please find the note here.
Final Report of Jean-Paul Gauzès
On 4 March 2021, Jean-Paul Gauzès submitted his report to the European Commission proposing
reforms to EFRAG's governance structure and funding if it were to become the European non-financial reporting standard setter; to ensure that future EU sustainability reporting standards are developed using an inclusive and rigorous process .
For his recommendations, Jean-Paul Gauzès considered feedback from his two public consultations and input from extensive outreach. The publication of the report was accompanied with a feedback statement summarising the main feedback he received from his second public consultation and how this feedback was considered in preparing the final recommendations.
On 8 March 2021, Jean-Paul Gauzès's report was published together with the report of the Project Task Force on preparatory work for the elaboration of possible EU non-financial reporting standards established by EFRAG in line with a European Commission mandate to EFRAG with a request for technical advice.
A second meeting with leading international sustainability reporting standard setters and other related initiatives (see news item here) 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.