8. July 2020

Response to EU Commission: ASCG criticises renewed debate on IAS Regulation

In the course of the European Commission’s Consultation on the renewed sustainable finance strategy, the ASCG has strongly criticised the Commission (COM).

The criticism is aimed at the debate on the presumed weakness of the IFRS rules to hinder sustainable investment behaviour, which was once again initiated by the COM in this context.

Both the consultation on the Fitness check on the EU framework for public reporting by companies in 2018 and corresponding analyses by ESMA and EFRAG following the Fitness Check had already made it clear that there is no substantiated evidence to support this assumption.

Further, in its response, the ASCG reiterates its view that corporate reporting is not an appropriate policy instrument in this respect. It has an information and stewardship function. Politically motivated influence on the behaviour of economic actors, on the other hand, should primarily be exercised directly – e.g. through CO2 pricing.

The text of the DRSC statement can be obtained here.