1. June 2021
Due to the rapid developments at both international and European level to create new standard-setters in the field of sustainability reporting, it is becoming increasingly clear that significant financial resources will be required to set up these organisations in the coming months.
At the international level, a new International Sustainability Standards Board (ISSB) is expected to be set up at the IFRS Foundation next to the IASB in November this year. At the European level, the remit of the European Financial Reporting Advisory Group (EFRAG) is to be expanded to set European standards for sustainability reporting in accordance with the proposal of the Corporate Sustainability Reporting Directive (CSRD).
The ASCG takes up these challenges in a proactive manner and, at its meeting today, the Administrative Board has decided to create a new national funding mechanism for international and European standard-setting initiatives. It follows similar initiatives in other EU member states such as Denmark.
The Administrative Board has agreed on the following key points:
The chairman of the ASCG’s administrative board, Nicolas Peter, comments on today’s decision as follows: “The new national funding mechanism is an important visible signal of support for the rapidly developing sustainability reporting. Germany cannot stay behind, and our financial contributions shall reflect the strength of the German economy. The development of consistent international standard-setting is extremely important for the German economy as a whole. We want to secure the basis for their financing.”
The ASCG President Georg Lanfermann points out:” The creation of the national funding mechanism is another important step with a view to expanding the ASCG activities, where we will set up a special technical committee for sustainability reporting by the end of this year. We want to open up even more to broader society and to create a national platform for the exchange on issues regarding wider corporate reporting. ”
ASCG Vice President Sven Morich adds: “The funding model has already been successfully tested in the past when financing the IASB’s activities in the area of financial reporting. In view of the upcoming important expansion of tasks, the financial contributions for EFRAG in particular should not be exclusively reserved for ASCG members, but should also be open to other stakeholder groups.”