The Economy for the Common Good (ECG) has joined organisations representing investors, civil society, sustainable companies, trade unions and multi-stakeholder alliances, including members of the EFRAG Sustainability Reporting Pillar to co-sign a letter directed to the European Commission in order defend some of the achievements attained in terms of sustainability. The letter states:

Firstly, we strongly support the objective of maintaining the full integrity of the set 1 sector agnostic standards and finalising these standards without further delay. It has been well established that increased transparency through sustainability reporting is critical to achieve and implement the EU Sustainable Finance Agenda and the European Green Deal, including the commitments to decouple growth from resource use and “leave no person and no place behind”. Therefore, any delay would go against the fundamental building blocks to build a sustainable future.

European Sustainability Reporting Standards (ESRS) cannot and should not be viewed as a mere compliance exercise. These standards provide a vital competitive
advantage for companies allowing them to access large pools of capital and lowering business costs.

Secondly, we appreciate that the sector-specific standards need to be developed through a due process that allows for a proper discussion, sound and balanced technical advice from the EFRAG TEG, and weighing of various options and taking well informed decisions by the SRB. We also understand the importance of providing sufficient time and guidance to large companies to adapt to the new reporting requirements resulting from the EU sustainable finance framework, including the EU Taxonomy.
We welcome the Commission’s request for the development of guidance and interpretation documents for the sector-agnostic standards. However, we call for a clear timeline and commitment from the Commission with regards to the eventual adoption of the sectoral and listed SME standards.
Given the suddenness and the far-reaching implications of the Commission’s decision, we would like to raise the following critical points:
  1. It is of utmost importance to us that the Commission adopts the sector-agnostic standards as agreed upon by the EFRAG SRB with as minimal changes as possible.
  2. These sector-specific standards remain critically important and should in practice reduce the complexity of the reporting process for companies in distinct industries by specifying what information is material in relation to concrete topics.

You can read the full letter here.