ESAs issue a comment letter to the IFRS Foundation’s consultation

The Chairs of the three European Supervisory Authorities, EBA, EIOPA and ESMA, have issued a comment letter to the IFRS Foundation’s consultation. The joint the letter emphasises the following aspects: (i) the global challenges posed by sustainability for investors and other stakeholders and their call for a common set of standards; (ii) it is important to build on existing initiatives and to take key notions such as ‘double materiality’ into account; (iii) it is necessary to address environmental, social and governance aspects beyond climate.

This letter follows on the June 2020 joint response to the European Commission in relation to the review of the Non-financial Reporting Directive (NFRD) in which the three Chairs acknowledged the need for a standardisation solution in Europe, while calling for the development of international standards in the medium term.

The joint the letter emphasises the following aspects: (i) the global challenges posed by sustainability for investors and other stakeholders and their call for a common set of standards; (ii) it is important to build on existing initiatives and to take key notions such as ‘double materiality’ into account; (iii) it is necessary to address environmental, social and governance aspects beyond climate.

This letter follows on the June 2020 joint response to the European Commission in relation to the review of the NFRD in which the three Chairs acknowledged the need for a standardisation solution in Europe, while calling for the development of international standards in the medium term.