EFRAG PTF-ESRS issues working papers on sustainability reporting standards

The EFRAG Project Task Force on European sustainability reporting standards (PTF-ESRS) has published on its website working papers on the first draft standards (so-called Batch 1) on sustainability reporting on 20 January 2022.

The papers reflect the current state of the standard setting work carried out by the PTF following the temporary mandate from the European Commission (COM) as of May 12, 2021. In the accompanying cover note the PTF-ESRS describes the status of these working papers in light of the due process the PTF has defined for this mandate. For the first time this cover note sets out the intended structure, i.e. the architecture of the standards, in detail and titles of the standards. Batch 1 comprises four cross-cutting standards (of a total of five), two conceptual guidelines (of a total of six) and the ESRS E1 Climate change. The latter is based on the Climate standard prototype working paper published by the PTF in September 2021, which in the meantime has undergone significant revision.

The PTF has announced in the Cover Note that the other working papers will be published in two further batches within the next weeks. These working papers will address other environmental as well as social and governance topics.

Furthermore, the PTF emphasises that the publication of these working papers is to ensure a transparent process, there is, however, no public consultation at this point; this is planned for a later date, which, however, was not specified.

The recently established Sustainability Reporting Technical Committee of the ASCG as well as the ASCG Climate Reporting Working Group will thoroughly address these PTF working papers in their upcoming meetings.

The PTF activities in this regard are in response to Article 19b of the COM’s draft of 21 April 2021 for a Corporate Sustainability Reporting Directive (CSRD). In this draft, the COM proposes to specify the new reporting obligations on sustainability through reporting standards. The draft directive also provides for a mandate to EFRAG to develop technical advice on the basis of which the COM will adopt the relevant delegated acts.