5. June 2023

EFRAG consults on its Comment Letters on the ISSB’s Agenda Consultation and the ISSB’s proposed methodology for enhancing the international applicability of the SASB Standards

On 2 June the European Financial Reporting Advisory Group (EFRAG) published its preliminary views on the ISSB’s consultation on future Agenda Priorities as well as on the ISSB’s proposed methodology for enhancing the international applicability of the SASB Standards. EFRAG asks for feedback on these preliminary views until 10 July 2023 (SASB Standards) and 25 July 2023 (Agenda Consultation). The short comment period regarding the SASB Standards is due to the ISSB’s short comment period. The ISSB asks for views are to be uploaded by 9 August 2023.

In its proposed draft comment letter to the ISSB’s Agenda Consultation, EFRAG makes the following general comments:

  • the universe of the ISSB standards and the corresponding underlying concepts should be defined;
  • interoperability in structure and content with other sustainability reporting standards should be prioritised by the ISSB;
  • connectivity should be included as a priority topic in the work plan, together with the other subject-specific standards.

This shows that EFRAG gives priority to the initiation of new research and standard setting projects. However, EFRAG did not put forward a prioritisation of different research projects.

EFRAG’s other draft comment letter regards the methodology that the ISSB proposes to enhance the international applicability of the SASB standards. EFRAG generally agrees that the revision approaches will improve the international applicability of the SASB Standards. EFRAG also points out the relevance of the SASB standards for its own standard-setting process regarding the 39 sector standards and emphasises that interoperability is key not only for the sector agnostic standards but also at the sector standard level. The SASB standards will be a source of sector guidance for ESRS preparers for the transition period (pending the issuance of ESRS sector standards). EFRAG lays out several details remarks on the ISSB proposal. Among others EFRAG suggests that the ISSB considers the development of more recent frameworks on sustainability reporting or frameworks under development such as ESRS or GRI.

The DRSC’s Technical Committee Sustainability Reporting will – in its next meeting on 15 and 16 June 2023 discuss EFRAG’s preliminary views on these ISSB consultations. The DRSC will further hold a web-based public discussion together with representatives of ISSB and EFRAG regarding the current ISSB consultations on 28 June 2023 (10am-1.15pm, event language is German) and invites all interested parties to register for this web-based event (see below).