EFAA commented to EFRAG’s Discussion Paper on the connectivity of financial and sustainability reporting, supporting efforts to improve reporting quality through greater coherence, consistency and transparency.
EFAA emphasised that connectivity initiatives must be scalable and proportionate, particularly for SMEs and SMPs that are increasingly affected by sustainability-related information requests through value chains. The response highlights the crucial role of SMPs as trusted advisers in implementing connectivity in practice and calls for practical guidance, templates, affordable digital tools and SME-scaled examples.
EFAA also cautions against excessive complexity, unsupported quantification requirements and reporting expectations that could create disproportionate burdens for SMEs.
EFAA’s reply to the consultation is available here.