The European Financial Reporting Advisory Group (EFRAG) announced the integration of a sustainability reporting pillar in its organisational structure as part of their governance reform.
On January 2022, EFRAG welcomed the Economy for the Common Good (ECG) to the sustainability reporting pillar as part of the Civil Society Organisations Chapter, along with 12 other new member organizations belonging to different chapters and sectors. EFRAG serves the European public interest in financial and sustainability reporting by developing and promoting European views in the field of corporate reporting.
Within this context, Economy for the Common Good contributes practical measurement and reporting tools designed to support values-driven businesses, such as the Common Good Balance Sheet, the Common Good Matrix and the Common Good Product. These instruments are defined by key performance indicators pertaining to human dignity, solidarity, social justice, environmental sustainability, transparency and co-determination. ECG calls for the integration of ethical parameters into the newly created European CSR Directive whose first set of standards will be adopted by October 2022.
The membership in the EFRAG sustainability reporting pillar, which is responsible for the European standard for sustainability reports “Corporate Sustainable Reporting Directive“ (CSRD) can be seen as a major success. The ECG will be involved in the design of the new standard in the coming months. In the next step, ECG’s Matrix Development Team will be supported in the further development of the Common Good Matrix.
Gerd Hofielen, representative of ECG at EFRAG stated that: “The Economy for the Common Good is the first CRS standard organization to be invited by EFRAG to actively take part in this highly important opinion-forming process. We see this great success as a result of more than 10 years of profound work in the field of the transformation of global economies towards a sustainable future.”
EFRAG’s General Assembly meetings will take place in February and March 2022, and they hope that more European and Civil Society Organisations such as the ECG will join them in their efforts to attain representation of all relevant sustainability reporting stakeholders.
