Eumedion: independence is key in possible European sustainability reporting standard setting process
News · 07-01-2021
If the European Commission decides to create a European standard setter for sustainability reporting, then a non-politicised, independent process for developing such standards is key. Eumedion underlines the importance of an independent standard-setting process in its response to the preliminary proposals of the chairman of the board of the European Financial Reporting Group (EFRAG) regarding changes to the governance and financing of EFRAG. In June 2020, the European Commission invited EFRAG Chair Jean-Paul Gauzès to make recommendations on this matter if EFRAG were entrusted with the development of possible EU non-financial reporting standards. The European Commission will probably take a decision on this topic in March.
In its response, Eumedion writes that the future members of the so-called European Non-Financial Reporting Board should be selected on the basis of professional competence, relevant experience, track record, professional background and diversity instead of a specific number of representatives from the relevant stakeholder groups. Eumedion also endorses the importance of an open and transparent non-financial reporting standard-setting process, including a consultation period of at least three months on proposed non-financial reporting standards.