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Sustainability information and financial market efficiency - January 2023



This Debate Paper highlights key challenges for appropriate implementation of the new EU sustainability reporting framework and how disclosure of reliable and comparable sustainability information might contribute to efficient capital allocation. To reach these objectives, the following urgent action points have been identified:

  1. Ensure full interoperability between the ISSB and ESRS standards, so that companies which comply with the ESRS are considered to be complying with ISSB standards
  2. Proper and swift transposition and implementation of the CSRD
  3. The European Commission needs to ask the CEAOB to develop a specific assurance standard that defines the sustainability assurance process, taking into account the work done by the IAASB
  4. Develop a regulatory and supervisory framework for ESG ratings, notably to increase the transparency of sustainability rating methodologies
  5. Elaborate a strategic vision for the EU in order to create a more diversified and competitive EU market for auditors, data providers, rating agencies and index and benchmark providers, which will improve the preparation of the EU sustainability data “eco-system”.


In the context of the adoption of the European Union Corporate Sustainability Reporting Directive (“CSRD”), the AEFR proposes through this debate paper a brief and concise review of the key implementing issues regarding the development and dissemination of sustainability information on capital markets. The CSRD aims to create the conditions for sustainability reporting to become as strong a pillar as financial reporting, and to reduce greenwashing. To this end, it seeks to facilitate investment choices in sustainability assets by improving the assessment, the comparability, and the transparency of sustainability information.