Anticipated financial effects: DRSC submission to TIG

On 29 January 2026, the DRSC sent a submission to the Transition Implementation Group on IFRS S1 and IFRS S2 (TIG) of the IFRS Foundation. In this submission, the DRSC addresses the practical challenges that arise from the requirement to quantify anticipated financial effects (AFE) associated with sustainability matters in accordance with IFRS SDS. At the same time, the DRSC takes a critical look at the ISSB’s educational material on this topic, which was published by the ISSB in August 2025.

In light of the ESRS revision – which also requires the disclosure of quantified AFE – the DRSC had intensively discussed this issue and, due to the significant conceptual and practical challenges involved, had expressed strong reservations against a quantification requirement, both to EFRAG (most recently in November 2025) and in its comment letter of 16 January 2026 to the Federal Ministry of Justice and Consumer Protection. In its submission to the TIG, this issue is now being addressed once again in a differentiated and detailed manner.