The European Commission (EC) has announced a public consultation paper, EFRAG Due Process Procedures on EU Sustainability Reporting Standard-Setting, that outlines requirements that will be followed in the European Financial Reporting Advisory Group’s (EFRAG) role as technical advisor to the EC in preparation for Sustainability Reporting Standards. EFRAG has been tasked with developing the draft standards to support the EU’s proposed Corporate Sustainability Reporting Directive (CSRD). The consultation paper confirms the requirement that the standards be reported in machine-readable format:
“Further to the proposal for a CSRD, companies will have to ‘tag’ their reported sustainability information according to a digital categorisation system to be developed together with the sustainability reporting standards.”
The timeline for completion of draft standards has been set for October 2022. Comments to the consultation paper are due September 15, 2021.