Issued in response to EFRAG’s review of the ESRS, this joint statement highlights the importance of maintaining disclosures on anticipated financial effects to ensure investors have access to decision-useful information.
In the context of the European Financial Reporting Advisory Group (EFRAG) revision of the European Sustainability Reporting Standards (ESRS), the PRI, Eurosif – the European Sustainable Investment Forum, the European Federation of Financial Analysts Societies (EFFAS), the Institutional Investors Group on Climate Change (IIGCC), and the Dutch Federation of Pension Funds (PensioenFederatie) jointly call for maintaining mandatory qualitative and quantitative disclosures on anticipated financial effects.
These disclosures are essential for connecting sustainability risks and opportunities with companies’ financial statements, allowing investors to assess financial materiality and understand how sustainability factors affect financial performance. Making such disclosures voluntary, as proposed under EFRAG’s “Option 2,” would undermine the robustness of the ESRS, reduce comparability with international standards such as the ISSB, and limit the availability of decision-useful data. The organisations urge EFRAG to provide clearer guidance and proportionate reliefs to support preparers while ensuring that users retain access to high-quality, comparable sustainability information.
Download the joint letter below.
