This report proposes a roadmap for the development of a comprehensive set of EU sustainability reporting standards. It was prepared by a multi-stakeholder task force established by the European Financial Reporting Advisory Group (EFRAG). The detailed report taken as a whole reflects a large consensus. These recommendations are made in a context where the content of the revised Non-Financial Directive (NFRD) is not finalised. These recommendations do not constitute a first attempt at standard-setting. Their objective is to describe the scope and structure of future sustainability reporting standards that contribute to the achievement of the EU’s policy objectives, not to set out specific disclosure requirements, indicators or metrics. The latter is a task for the EU’s future standards-setter.
The revision of the NFRD is essential to meet the needs of users for relevant, comparable and accessible information. Sustainability reporting must therefore rapidly improve to progress alongside the equally rapidly developing EU policies in the context of the EU Green Deal, including sustainable finance. Most of these policies require more robust data about the risks that companies face in relation to sustainability matters and about their impacts on society and the environment.