The European Financial Reporting Advisory Group (EFRAG) has published its initial proposals for the climate information that EU companies will be required to disclose under the bloc’s new sustainability reporting standards.
The proposals were presented at an EFRAG plenary yesterday as part of a ‘Climate Standard Prototype’ working paper, and is described as providing a “robust basis” for the EU’s incoming Corporate Sustainability Reporting Directive (CSRD). The revamped standards will replace the EU’s legacy Non-Financial Reporting Directive, which has long been criticised for being too vague, producing inadequate and incomparable data on sustainability issues.
The climate element is one of nine focus areas that will feed into the CSRD, which is also expected to include specific provisions for SMEs and sector-by-sector disclosures.
The climate prototype establishes 10 separate disclosure areas, which fall under the headings of Strategy, Im…