The consultation represents the EFRAG’s efforts to meet the European Commission’s Action Plan on Sustainable Finance initiative. Through the use of a questionnaire, the EFRAG will gather views from constituents on possible alternative accounting treatments meeting the following objectives:

• “[P]roperly portray the performance and risks of long-term investment business models, in particular for those equity and equity-type investments that are much needed for achieving the UN Sustainable Development Goals and the goals of the Paris Agreement on Climate Change;”
• “[P]referably enhance investors’ insight in the long-term performance of investments, as opposed to recognising point-in-time market-based value changes in reported profit or loss during the duration of the equity investment.”

Comments on the questionnaire are due by 5 July 2019. Respondents are encouraged to read the accompanying EFRAG Secretariat background paper. For more information, see the press release on the EFRAG’s website.