The Credibility Of EFRAG’s Sustainability Reporting Standards Is At Risk

Speed is not always your friend. Sometimes it’s better to take the time to make the right decision than to rush to meet a false deadline. In this instance I am referring to the process to select the Chair of the “Sustainability Reporting Board” (SRB) which has been established under the European Financial Reporting Advisory Group (EFRAG). This is a very significant position to fill. I have no opinion on who should be selected and do not know the opinions of those who have a say in the matter. But I do know that a number of people have expressed concerns about the speed and lack of proper debate and scrutiny in this process, as well as in the process to develop the first draft standards that preceded it.

The reason I’m writing is to encourage the EU to have, and be perceived as having, a credible process for selecting the Chair of the SRB. Failure to do so will put both the standards they put forward and the EU’s “Green Deal” at risk. But this is not simply an EU issue. It is one that matters to the world. Thus, it is important to put the work of EFRAG in a broader context.