The World Federation of Exchanges (WFE) has called for forthcoming EU sustainability reporting standards for non-EU groups to enable companies to build on existing international reporting and avoid unnecessary duplication.
The recommendations form part of the WFE’s response to a consultation by EFRAG, the organisation responsible for developing technical advice to the European Commission on European Sustainability Reporting Standards. The proposed standards, known as ESRS-40a, will underpin sustainability reporting requirements for certain non-EU groups with significant activities in the EU, making their design important for internationally active companies and capital markets.
The WFE calls for companies reporting under the ISSB Standards, including voluntarily, to be able to use that information wherever it satisfies corresponding ESRS-40a requirements, supplementing it with the additional impact-related information necessary for ESRS-40a.
Practical interoperability should allow companies to reuse reliable information without unnecessary repetition of reporting or assurance. Our response also highlights the importance of workable reporting boundaries, safeguards against disproportionate value-chain information requests, and flexibility in applying EU-derived legal concepts outside the EU.
Practical implementation guidance should support consistent application without introducing additional disclosure obligations. As operators of globally interconnected markets, WFE members have a strong interest in sustainability reporting that provides useful, reliable information while supporting efficient cross-border capital formation.
The WFE encourages EFRAG and the European Commission, within their respective mandates, to advance practical interoperability and proportionate reporting while preserving transparency and comparability.