The Platform on Sustainable Finance, an advisory body to the European Commission, has released a statement regarding the Exposure Draft European Sustainability Reporting Standards for non-EU companies, known as ESRS 40-a.
Core Recommendations for Non-EU Reporting
The statement addresses the Exposure Draft standards developed by EFRAG in accordance with Article 40a of the Accounting Directive. The consultation period for these standards remains open until 31 October.
To ensure effective implementation, the advisory group recommends that the final ESRS 40-a retain strong alignment with the standards applied to EU undertakings, while appropriately acknowledging the specific legal mandate tailored to non-EU firms.
Taxonomy Integration and Reporting Perimeter
The advisory body calls for promoting EU Taxonomy-related disclosures where necessary to support the broader functionality of the EU sustainable finance architecture.
Furthermore, the statement advises against introducing a mixed approach, urging regulators to maintain a consistent global reporting perimeter for sustainable impacts.
