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05 October 2021

EFRAG: Insights on reporting the business model, sustainability risks and opportunities


The Main Report presents the state of play and the drivers of current reporting practices, the application of technological solutions, and suggests a path to improvement in the reporting of sustainability risks, opportunities and their linkage to the business model.

​The European Lab@EFRAG Project Task Force on the reporting of non-financial risks and opportunities and linkage to the business model (PTF RNFRO) is pleased to issue its Report: ‘Towards Sustainable Businesses: Good Practices in Business Model, Risks and Opportunities Reporting in the EU​and supporting 'Supplementary Document: Good Reporting Practices​'. 

The PTF-RNFRO deliverables aim to help companies benchmark and improve their current reporting practices.


​Following a collaborative effort in the review of reporting practices and gathering stakeholder feedback, the PTF-RNFRO, whose focus was on the reporting on sustainability risks and opportunities and the linkage to the business model- a key element of a proposal for a Corporate Sustainability Reporting Directive (CSRD)- has published its findings in a Main Report and Supplementary Document with good reporting practices.

The Main Report presents the state of play and the drivers of current reporting practices, the application of technological solutions, and suggests a path to improvement in the reporting of sustainability risks, opportunities and their linkage to the business model. 

The Supplementary Document shares 37 examples of good or leading practices extracted from 27 companies- with reasons why these are good practices and suggestions for improvement.

The PTF-RNFRO deliverables identify and share good practices aiming to help companies to benchmark and improve their current reporting practices. 

A webinar featuring keynote speakers Pascal Durand, MEP, EP rapporteur on the CSRD and Alain Deckers from the European Commission will be held in early November. During the webinar, there will be a panel session involving PTF-RNFRO members to further discuss the implications and application of their report findings. 

Jean-Paul Gauzes, EFRAG Board President and Chair European Lab Steering Group observes:  “Reporting on how sustainability risks, opportunities are linked to the business model is necessary to understand the value creation of companies. The extensive and detailed work by the 19 PTF-RNFRO members led by Mario and Dawn will be a useful reference point for EFRAG’s wider sustainability reporting work. We hope that the identified examples can serve as inspiration for companies to improve their current reporting. I would like to thank all project task force members for this important contribution to the work of EFRAG.” 

Mario Abela and Dawn Slevin, Co-Chairs PTF-RNFRO note that:
 “Business predicated on the perpetual consumption of materials, which is unsustainable ecologically, socially and ultimately economically needs rapid redress in the face of our global climate and environmental emergency.  The role of reporting has shifted to going beyond explaining financial performance to understanding the risks and opportunities inherent in business models driving those results, encompassing both people and the planet. Profits can no longer be disconnected from the impacts and dependencies of business models.  Our work is intended to influence practice by encouraging preparers to provide a much clearer ‘through-line’ between financial and sustainability information using the business model as the mechanism for achieving that.

” To come to our conclusions, we have drawn on insights from a breadth of stakeholders to whom we owe a debt of gratitude. Foremost, we would like to express our immense thanks to all the PTF-RNFRO members for their expert insights, generosity of time despite the limitations arising from the pandemic, and constructive and open-minded approach throughout the project.” 

Below are details of the report:cover main report.PNG

EFRAG



© EFRAG - European Financial Reporting Advisory Group


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