The European Financial Reporting Advisory Group (EFRAG) supports the International Sustainability Standards Board’s (ISSB) proposal to permit the omission of information on greenhouse gas emissions associated with derivatives in the International Financial Reporting Standards ‘IFRS S2’ (see EUROPE 13651/29). However, in its final comment letter, published on Thursday 26 June, it recommended that this authorisation should be temporary.
It suggests that it could be re-examined in the light of any changes in reporting practices and evolving methodologies. In addition, EFRAG recommends clarifying the definition of facilitated emissions, as its scope can be very broad.
With regard to insured emissions, EFRAG supports the proposed relief. It also noted that a debate is underway at sectoral level in the EU on the relevance of publishing insured emissions, the maturity of the methodology available for calculating these emissions on the underwriting portfolios for the various insurance lines of business and the availability of the data needed to measure these emissions in a comparable way.
Read EFRAG’s letter: https://aeur.eu/f/hm3 (Original version in French by Anne Damiani)