The IDW has written an open letter to German and international policy makers and standard setters to draw attention to current critical aspects in the process of transformation to a sustainable economy. Regarding sustainability reporting and especially the proposed European ESRS, the letter notes:

The 13 drafts proposed by EFRAG feature a high degree of granularity, forcing companies to collect a large volume of detailed data for disclosure. There are justified concerns as to whether "the baby is being thrown out with the bathwater" from a cost and benefit perspective. In addition, consideration must be given to the need for companies to integrate the new reporting requirements into their reporting systems, which naturally requires a considerable amount of time. This is especially true for companies affected that were previously not required to report on sustainability-related matters to any substantial degree. Given the implementation timetable prescribed by the CSRD, there are doubts as to whether the necessary preparatory work can be achieved in time. There is thus an urgent need for the proposed ESRS to be revised, as is also evident from numerous comments on the consultation.

Please click to access the full letter on the IDW website.