The European Securities and Markets Authority (ESMA) supports a robust assessment of materiality, but expresses concern about the suggested “rebuttable presumption” approach in its response to the European Financial Reporting Advisory Group’s (EFRAG) public consultation on the first set of draft European sustainability reporting standards, published on Monday 8 August (see EUROPE 12989/1).
According to ESMA, EFRAG should “avoid requiring explanations for why certain disclosures were deemed immaterial since such explanations would by extension constitute immaterial information which would further contribute to the disclosure overload problem”.
ESMA also encourages EFRAG to continue its engagement with the International Sustainability Standards Board (IFRS) to ensure further alignment of European standards with international standards, to the benefit of users of sustainability reports and the companies that prepare them.
In addition to the key points in its response to EFRAG, ESMA makes a number of more technical comments on the details of the draft standards.
EFRAG is expected to deliver its final draft standards to the European Commission in November.
To read ESMA’s response to the consultation: https://aeur.eu/f/2s4 (Original version in French by Anne Damiani)