European Supervisory Authorities respond to Commission’s NFRD consultation

Article summary

The European Supervisory Authorities (ESAs) (the European Securities and Markets Authority (ESMA), the European Banking Authority (EBA) and the European Insurance Occupational Pensions Authority (EIOPA)) have responded to the European Commission’s consultation on revising the Non-Financial Reporting Directive 2014/95/EU (NFRD). While the ESAs have issued their own individual responses, their collective response welcomes the consultation, agreeing that it ‘addresses a number of important aspects of the future of the NFRD’. The collective response recommends a higher level of standardisation of the disclosure requirements used by companies when preparing non-financial information, as well as suggesting that the ESAs play a ‘leading role’ in standard-setting tasks, as each ESA has benefitted from increased legislative mandates on environmental, social and governance (ESG) matters.