After the Corporate Sustainability Reporting Directive (CSRD) was approved by the European Parliament on 10 November, another important step in European legislation concerning sustainability reporting follows: the European Sustainability Reporting Standards (ESRS). The European Financial Reporting Advisory Group (EFRAG) released the first set of the ESRS. These are standards that serve as guidelines for applying the directive.
The CSRD requires large companies to publish an annual report on their impact on people and the planet from 2025 onwards and shows where the bar is set for such reporting. To this end, the ESRS define the technical criteria that determine what and how to report. You can think of them as the guidelines for putting the CSRD into practice.
The ESRS includes two general standards and ten thematic standards that focus on the domains of environment (E), social (S) and managerial policy or governance (G).
Read our blog article on double materiality here.
In the following months, EFRAG will focus on a second set of draft ESRS: the sector-specific standards. These standards include criteria for the agriculture and mining sector, the oil and gas sector, the energy and road transport sector, the food industry and the textile sector. This set will also include standards for SMEs.
Thanks to our gap analysis, you will find out which steps you still need to take to comply with the CSRD. In any case, performing the double materiality analysis to identify material impacts, risks and opportunities is a crucial first step.
A draft version of the ESRS was published in April 2022. Anyone who wanted to, could read it and provide feedback. EFRAG has processed the feedback and has now released the final version. You can access the standards here. The European Commission is now consulting EU agencies and the member states. The final standards will be adopted in the form of delegated acts in June 2023.