In its meeting on 16 March 2023, the EFRAG General Assembly approved drafting updates to EFRAG’s Due Process Procedures for Sustainability Reporting Standard Setting (DPP) to align them with the final provisions contained in the Corporate Sustainabilty Reporting Directive (CSRD) as published the EU Official Journal on 16 December 2022.
No major changes to the principles underpinning EFRAG’s due process were made, as the published CSRD essentially confirmed the extent of and conditions for EFRAG’s mission as technical advisors to the European Commission.
At the same meeting, the yearly report of the EFRAG Administrative Board on the oversight of the due process over the past period was presented to the EFRAG General Assembly.
The updated DPP can be accessed on EFRAG’s public website here. The yearly report of the EFRAG Administrative Board report on the oversight of the due process can be accessed here.
EFRAG’s DPP, issued in March 2022, was initially developed based on the provisions contained in the proposal for a CSRD as issued by the European Commission in April 2021. The DPP indicated that ‘after the final legislative text of the CSRD is adopted, it will be reviewed to ensure alignment with the final provisions’.
In this context, at its meeting on 16 March 2023, the EFRAG General Assembly approved drafting updates to the DPP as recommended by the EFRAG Administrative Board supported by its Due Process Committee.
No major changes to the principles or steps underpinning EFRAG’s due process as the published CSRD essentially confirmed the extent of and conditions for EFRAG’s mission as technical advisors to the European Commission.
Revisions, other than pure editorials, essentially consisted in aligning the references to, or quotes of, specific provisions or paragraphs contained in the CSRD. Revisions made primarily concern Chapter 1 Objectives (clarification of conditions for EFRAG’s technical advice to be considered by the EC and changes to the elements to be included in the technical advice), Chapter 4 –Agenda Setting (revised timetable for the first sets of ESRS and new requirements for the EC to consult on EFRAG’s work program) and Chapter 5 Standard Setting (consideration of other EU legislation and other global sustainability reporting initiatives, need for proportionality for SMEs standard).
At the same meeting, the yearly report of the EFRAG Administrative Board on its oversight of the due process over the past period was presented to the EFRAG General Assembly. The EFRAG Administrative Board, supported by its Due Process Committee, is responsible for the oversight of the due process and will address any issues that stakeholders may raise.
The updated DPP can be accessed on EFRAG’s public website (under document/communication) here. The yearly report of the EFRAG Administrative Board report on the oversight of the due process can be accessed here.
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