EU draft ESG reporting standards are out, with Frank Bold among the contributors

European companies can now take a look at the draft sustainability reporting standards they will report against in the coming years. The drafts were developed by the EFRAG Project Task Force on EU Sustainability Reporting Standards, with the participation of two Frank Bold representatives - Head of the Responsible Companies Section Filip Gregor, and Joanne Houston, from Frank Bold's Brussels office. Both experts will continue contributing to the development of the EU standards as members of the newly established EFRAG Sustainability Pillar.

The Project Task Force completed its work and published its draft standards in the form of Exposure Drafts at the end of April 2022. These are now open for public consultation until 8 August 2022. The recently launched EFRAG Sustainability Pillar will take over the work of the EU Project Task Force in order to finalise the standards before submission to the EU Commission. Frank Bold experts will continue their involvement in the permanent EFRAG structure.  

The binding EU standards are expected to be adopted in the first half of 2023, and will apply as of financial year 2024.

Alongside the development of the standards, trialogue negotiations between the EU Council, Parliament, and the Commission on the Corporate Sustainability Reporting Directive (CSRD) are ongoing. The final content of the Directive is likely to be known by the end of May 2022. Under the Commission's initial proposal, the reporting obligation is to be extended to all large companies with more than 250 employees and listed SMEs.

‍Frank Bold is at standards development

In March, Filip Gregor, the Head of Responsible Companies Section at Frank Bold, was appointed to the EFRAG Sustainability Reporting Board, which will be responsible for the development of the sustainability reporting standards, including advice to the European Commission. 

Joanne Houston from Frank Bold's Brussels office will also continue her work on the standards as a member of the newly formed EFRAG Technical Expert Group. The group will be responsible for providing technical advice on the draft standards and ensuring connectivity between financial and sustainability reporting.