IFAC responds to European Sustainability Reporting Standards


The International Federation of Accountants (IFAC) has submitted feedback in response to the European Commission’s European Sustainability Reporting Standards (ESRS). In its response, IFAC welcomes the standards while noting significant concerns regarding the need for interoperability that supports a global system for reporting. In addition to the ESRS, IFAC has also welcomed the International Sustainability Standards Board’s (ISSB) new standards and other important jurisdiction or regional initiatives, notably the U.S. SEC’s proposed climate disclosure rule. However, they note that these approaches must align key concepts, terminologies, and metrics to avoid regulatory fragmentation, especially on matters of materiality. For details please click here.