EFRAG publishes rationale behind climate disclosure standards
The European Financial Reporting Advisory Group (EFRAG) recently published its ‘Climate standard prototype’ working paper, setting out its current thinking on climate-related reporting standards. It has now released its accompanying ‘Basis for Conclusions,’ discussing the rationale behind the draft standards in substantial detail, from objectives and scope to specific climate policies, targets and metrics. Like its sister document, the paper is provisional in nature and is being released for information rather than comment.
The working paper is certainly of interest to many of our readers from a standard-setting perspective; we also welcome it as an example of transparent process. EFRAG’s work continues on other sustainability issues, as well as on climate, with the aim of delivering a complete set of draft standards to the European Commission in mid-2022.