About sustainability reporting

In April 2021, the European Commission adopted a legislative proposal for a Corporate Sustainability Reporting Directive (CSRD) that requires companies within its scope to report using a double materiality perspective in compliance with European Sustainability Reporting Standards (ESRS) adopted by the European Commission as delegated acts. Under the proposed CSRD, EFRAG was appointed technical adviser to the European Commission developing draft ESRS. This was confirmed by the text of 21 June resulting from the trilogue between the co-legislators and the text of 10 November 2022 approved by the European Parliament.

The twelve draft standards were approved by the EFRAG Sustainability Reporting Board (EFRAG SRB), advised by the EFRAG Sustainability Reporting Technical Expert Group (EFRAG SR TEG) for release to the European Commission on 22 November 2022. The European Commission adopted the Delegated Act on the first set of European Sustainability Reporting Standards (ESRS) on 31 July 2023 (press announcement, Q&As webpage & implementing and delegated acts – CSRD webpage). Adoption of ESRS by Delegated Act is mandated by the co-legislators in the Corporate Sustainability Reporting Directive (CSRD - Directive (EU) 2022/2464) adopted in December 2022.

Due Process Procedures for Sustainability Reporting Standard-Setting

The European Commission's proposal for a Corporate Sustainability Reporting Directive envisages the adoption of EU sustainability reporting standards (ESRS). In this context, EFRAG is requested to provide Technical Advice to the European Commission in the form of fully prepared draft standards and/ or draft amendments to Sustainability Reporting Standards.

In a letter dated 12 May 2021, Commissioner McGuinness invited EFRAG to launch as soon as possible the necessary technical work to develop draft sustainability reporting standards consistent with requirements set out in the European Commission’s proposal in parallel with the legislative process. The Commissioner specifically asked to foreshadow the governance reform and processes to ensure transparency and due process in the standard-setting process from the beginning. The interim steps should be taken in a pragmatic spirit to allow work to start as quickly as possible, with an appropriate handover to the EFRAG revised governance structure at the earliest opportunity.

Public consultation

In this context, EFRAG issued public consultation on proposed Due Process Procedures (DPP) stipulating he requirements to be followed in its role as technical advisor to the European Commission in the preparation of draft ESRS in June 2021. The public consultation paper was open for comments unitl 15 September 2021.

On 22 November 2021, EFRAG published today aggregation of the comments received in a summary report together with messages from the EFRAG Board President, Jean Paul Gauzès, addressing the due process during the interim work, the transition to the new governance structure, the due process of EFRAG’s financial reporting pillar and the cooperation with global sustainability reporting standard setters and initiatives.

The EFRAG Administrative Board Due Process Committee (DPC) met twice in February and agreed to recommend a draft Due Process Procedures for the DPC which were considered by the EFRAG Administrative Board at its 28 February meeting in a public session (here)

On 15 March 2022, the General Assembly approved the DPP for Sustainability Reporting Standard-Setting. On 22 March 2022, the EFRAG Administrative Board Due Process Committee ('DPC') met to discuss a Feedback Statement on the DPP consultation explaining how the feedback received from the 2021 DPP public consultation had been addressed.

The DPP was initally published on 30 March 2022 on EFRAG website (together with the Feedback Statement) : read the news item and access the documents here.

At its meeting on 16 March 2023, the EFRAG General Assembly approved drafting updates to EFRAG’s DPP to align them with the final provisions contained in the CSRD as published the EU Official Journal on 16 December 2022.

No major changes to the principles underpinning EFRAG’s due process were made, as the published CSRD essentially confirmed the extent of and conditions for EFRAG’s mission as technical advisors to the European Commission .

At the same meeting, the yearly report of the EFRAG Administrative Board on the oversight of the due process over the past period was presented to the EFRAG General Assembly.

Both documents can be accessed in the webpage under document/ communication.

EFRAG DPP for Sustainability Standard-Setting - Approved by GA 16-03-2023

Documents

30/03/2023 - Other EFRAG paper EFRAG DPP for Sustainability Standard-Setting Approved by GA 16-03-2023

30/03/2023 - Other EFRAG paper Report of the EFRAG Administrative Board to the General Assembly on the oversight of the due process GA meeting 16 March 2023.pdf

Project news

30/03/2023 - EFRAG has aligned its Due Process Procedures for Sustainability Reporting with the final provisions of the CSRD

In its meeting on 16 March 2023, the EFRAG General Assembly approved drafting updates to EFRAG’s Due Process Procedures for Sustainability Reporting Standard Setting (DPP) to align them with the final provisions contained in the Corporate Sustainabilty Reporting Directive (CSRD) as published the EU Official Journal on 16 December 2022.

No major changes to the principles underpinning EFRAG’s due process were made, as the published CSRD essentially confirmed the extent of and conditions for EFRAG’s mission as technical advisors to the European Commission.

At the same meeting, the yearly report of the EFRAG Administrative Board on the oversight of the due process over the past period was presented to the EFRAG General Assembly.

The updated DPP can be accessed on EFRAG's public website here. The yearly report of the EFRAG Administrative Board report on the oversight of the due process can be accessed here.

31/03/2022 - Open call for tenders to assist EFRAG in its cost-benefit analysis of draft European Sustainability Reporting Standards

EFRAG has issued today an open call for tenders to assist EFRAG in the cost-benefits analysis of the first set of European Sustainability Reporting Standards (ESRS).

Tenders, which should include a completed and signed Information Form and all the information specifically requested in the call for tenders, should be sent to EFRAG at call.for.tender@EFRAG.ORG no later than Thursday 28 April 2022 18.00 hrs Brussels time.

30/03/2022 - EFRAG issues its Due Process Procedures for Sustainability Reporting Standard Setting

EFRAG is pleased to inform stakeholders about a major development in its governance reform with the publication of the Due Process Procedures for Sustainability Standard-Setting (the DPP). The provisions contained in the DPP apply to the preparation of draft EU sustainability reporting standards by EFRAG.

EFRAG is also publishing a Feedback Statement explaining how the feedback received from the 2021 public consultation on the DPP was considered.

22/11/2021 - Proposed Due Process Procedures for EU Sustainability Reporting Standard Setting– Summary of the comments received

Following the public consultation on the Proposed Due Process Procedures for EU Sustainability Reporting Standard Setting, EFRAG publishes today an aggregation of the comments received in a summary report together with messages from the EFRAG Board President, Jean-Paul Gauzès, addressing the due process during the interim work, the transition to the new governance structure, the due process of EFRAG’s financial reporting pillar and the cooperation with global sustainability reporting standard setters and initiatives.

30/08/2021 - REMINDER | EFRAG Public Consultation – Due Process Procedures on EU Sustainability Reporting Standard-setting – Deadline: 15 September 2021

EFRAG is consulting on proposed Due Process Procedures stipulating the requirements to be followed in its role as technical advisor to the European Commission in the preparation of draft European Sustainability Reporting Standards (ESRS) or draft amendments of ESRS.

Comments, on all aspects of the proposals, are expected no later than 15 September 2021 and should be sent to the following email address: ESRSdueprocess@EFRAG.org.

16/06/2021 - EFRAG public consultation: Due Process Procedures on EU Sustainability Reporting Standard-Setting

EFRAG Secretariat seeks comments from stakeholders on its Public Consultation Paper: EFRAG Due Process Procedures on EU Sustainability Reporting Standard-Setting. Comments are welcome by 15 September 2021.

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EFRAG’S REGISTER OF DUE PROCESS CORRESPONDENCE WITH STAKEHOLDERS

As part of its due process procedures, the EFRAG Administrative Board and its Due Process Committee (DPC) make sure to address issues or questions raised by its stakeholders on EFRAG’s due process. EFRAG makes all due process correspondence available on its website. This includes the original submission as well as replies from the EFRAG Administrative Board or its DPC and the EFRAG Secretariat input into the reply.

Correspondence to the EFRAG Administrative Board and /or its DPC, on due process matters should be addressed to the following address: ESRSDueProcess@efrag.org