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Further to our prior report, on July 23, EFRAG launched its expected public consultation on the Exposure Draft ESRS-40a (formerly referred to as the Non-EU European Sustainability Reporting Standards, or N-ESRS), which would establish sustainability reporting requirements for certain non-EU parent companies with significant operations in the EU. EFRAG is accepting feedback on the Exposure Draft through its online questionnaire until October 31.
The proposed standards would apply an impact materiality approach rather than the double materiality framework used in the ESRS applicable to EU companies. Among other issues, the consultation seeks feedback on the proposed "mixed approach," which would permit certain non-climate disclosures to be limited to "EU-related" impacts under specified conditions, interoperability with other reporting frameworks, incorporation by reference to reduce duplicative reporting, and other aspects of the reporting framework for non-EU groups.
Based on strong member interest to date, the Society intends to participate in the consultation. Members interested in helping to inform the Society's response—or in joining the Society's EU Sustainability Working Group, which supports the Society's engagement on EU sustainability reporting and related policy developments—should contact Randi Val Morrison if they have not already done so.
This post first appeared in the weekly Society Alert!
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