6. January 2021
The ASCG’s Administrative Board today submitted its comments to EFRAG Board President Jean-Paul Gauzès on his ad personam mandate. Gauzès had been asked by EU Commissioner Dombrovskis in an ad personam mandate on 25 June 2020 to consider restructuring EFRAG should the organization be tasked with developing non-financial reporting standards. The EFRAG Board President had made his proposals public on 30 November 2020 and requested comments.
The Administrative Board shares Gauzès’ view that EFRAG would need an expanded structure in case of a possible mandate expansion. In contrast to the President of the EFRAG Board, it tends to be critical of a complete duplication of the existing structure: firstly, the urgently needed connectivity would precisely not be strengthened if two technical boards were to have decision-making authority in the future; secondly, the consequences a full two-pillar structure would have on staffing and funding should be not be underestimated. In any case, co-determination rights should be reserved for paying members only. For the legitimacy of the work in the non-financial pillar, a broader involvement of stakeholders is necessary. However, this should not be used as an excuse to undermine the structure of the association and the powers of its committees and bodies. Rather, involvement should be ensured through consultation and advisory boards.
Finally, the Administrative Board stresses the importance that any work of a newly created non-financial reporting pillar should be as closely aligned to and draw on global developments in order not to create a completely detached alternative framework that merely increases cost for everyone.