European Sustainability Reporting Standards have been adopted

Published 11 August 2023

PrintCategory: Impact and ESG

On 31 July 2023 the European Commission adopted European Sustainability Reporting Standards (ESRS) which are mandatory standards for companies under CSRD to use when reporting on sustainability information.

The ESRS have been adopted in a delegated act and supplemented by annexes specifying the standards. There are 12 standards – cross-cutting standards and standards on environmental, social and governance issues – which shall apply to all companies under the CSRD regardless of sector. In future, the Commission will adopt further delegated acts with, among others, sector-specific standards.

The ESRS are based on technical advice and the draft standards submitted by the European Financial Reporting Advisory Group (EFRAG) in November 2022. They are based on a “double materiality” perspective meaning that companies shall report on their impact on the environment and people as well as report on how environmental and social issues give financial opportunities and risks.

The ESRS delegated act is now subject to scrutiny by the European Parliament and the Council. If accepted, it will apply to companies already covered by the NFRD from 1 January 2024 and be phased-in for the remaining companies in line with the implementation of the CSRD.

Find the ESRS delegated act and annexes here and our previous update touching upon the CSRD here.

Tags:  Sustainability


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