Plans for EFRAG to broaden role requires establishment of a professional sustainability standard setting function
As part of the European Commission review of the Non-financial Reporting Directive (NFRD), it is exploring how new European sustainability standards could be created and managed.
The Commission has asked the European Financial Reporting Advisory Group (EFRAG) to consider the changes needed to its governance, if it were to take on responsibility for creating non-financial reporting standards. Until now, EFRAG’s remit has been to advise on financial standards only.
In this context, GRI has submitted a response to EFRAG’s consultation, setting out how GRI and the Global Sustainability Standards Board (GSSB) can contribute to the European solution. This includes addressing the need for one global set of sustainability reporting standards, in order to secure the necessary changes to achieve a sustainable economy.
GRI supports a proposed governance change by EFRAG that would introduce a two-pillar structure for financial and non-financial reporting, which is needed to ensure both are given equal weight and rigor.