Ad personam governance mandate
- Hocine Kebli, Saskia Slomp
The European Commission is preparing a legislative proposal for the revision of the Non-Financial Reporting Directive (NFRD). In parallel, the European Commission has mandated EFRAG to undertake preparatory work for the elaboration of possible EU non-financial reporting standards. This mandate is being carried out by a multi-stakeholder European Lab Project Task Force (PTF-NFRS).
In addition, Executive Vice-President Valdis Dombrovskis has invited Jean-Paul Gauzès, on an ad-personam basis, to provide recommendations on potential changes to the governance and financing of EFRAG, in case it were entrusted with the development of possible EU non-financial reporting standards. His invitation is accompanied by an Annex that provides the context within which the question of possible European reporting standards under the NFRD are being considered.
The final recommendations to the European Commission are expected by the end of January 2021. The ad personam mandate to Jean-Paul Gauzès, EFRAG Board President, can be found here .
On 1 October 2020, Jean-Paul Gauzès invited all interested stakeholders to contribute views related to his ad personam mandate. The letter and its accompanying questionnaire, can be found here.
About 50 responses were received to that first consultation and have carefully considered all of them (the letters received are uploaded to EFRAG website). Various additional contributions in different forms have also been considered and have helped to develop the preliminary proposals for possible changes to the governance and funding of EFRAG included in this second public consultation.
The input was considered in preparing a progress report with preliminary proposals, which was submitted to the European Commission on 6 November 2020 (available here)
On 30 November 2020, Jean-Paul Gauzès published a Consultation Document. The objective of this second consultation is to seek input on the proposals for changes to the governance structure of EFRAG and to obtain input on a number of matters that were not, or not fully, addressed in the first consultation and to make the proposals operational. The consultation is open until 6 January 2021.
On 10 December 2020, EFRAG hosted a meeting with some of the leading international corporate reporting initiatives in the context of the two non-financial reporting mandates: please find the note here