Getting it right! First ASCG’s comments on EFRAG’s consultation on ESRS

In its letter of 20 May 2022 to the European Commission (COM) and EFRAG the ASCG raised its concerns about the consultation process on European Sustainability Reporting Standards (ESRS), launched recently. Given the short comment period of 100 days the high amount of Exposure drafts and the extensive consultation survey are not proportionate in the ASCGs view. This would put the goal of developing high-quality reporting standards at significant risk.

The ASCG letter also contains proposals for an amended consultation process. Repeatedly, the ASCG expresses its preference for a staggered process involving a much stronger consideration of the ISSB’s Global baseline.

With regards to the standard setting process at EFRAG the ASCG already had submitted to EFRAG its views on critical success factors in November 2021 and also contributed during the development of the draft standards. This includes the ASCG’s initial reaction on the work of the PTF-ESRS in February 2022 and the call for an integrated reporting option submitted to EFRAG in March 2022. Further information on the current consultation may be obtained from the ASCG’s Briefing paper of 3 May 2022 (in German).