European Sustainability Reporting Standards (ESRS)

The framework for future sustainability reporting.

The binding European Sustainability Reporting Standards (ESRS) define the sustainability disclosures required by the CSRD in detail. They are structured into sector-independent, sector-specific and organization-specific disclosures. The sector-independent standards have already been finally adopted and are currently awaiting publication in the Official Journal, while the sector-specific standards have been postponed in the political process until 2024. According to EFRAG’s plan, the sector-specific standards are to be drawn up in three packages, in which the most important criterion for the order is the greenhouse gas intensity of the sector. The organization-specific disclosures are to be developed by the companies themselves if they identify material IROs that do not lead to disclosure under the ESRS.

A simplified version of the reporting standards is being developed for SMEs. These have also been postponed to 2024.

The basis for the selection of reporting content is the materiality principle of dual materiality. Topics are classified as material if they either entail significant risks or opportunities for business success or have environmental or social impacts. In the previous interpretation of the GRI, both criteria had to be met (and) for a topic to be classified as material.

To assess materiality, the negative and positive impacts, risks and opportunities (hereinafter referred to as IROs) associated with sustainability topics are used to determine the material topics and therefore the reporting content. This procedure is more time-consuming than in the past and requires an in-depth analysis of both the core business and the value chain.

Comply or explain: For qualitative disclosures such as strategies and guidelines, a reason for absence can still be chosen, which should specify a time horizon for fulfillment.

Omissions: Quantitative disclosures at the data point level below the disclosure requirements can also be determined as not material and in this case do not have to be reported. It is recommended that this is already included in the materiality analysis and that the IROs are linked to data points, otherwise it will be difficult to justify omissions at a later stage.

Phase-in: Some data points have transition periods in which they do not necessarily have to be reported, even if the topic has been declared material.

While ESRS 2, E1 and parts of S1 were still defined as mandatory material in the first drafts of the ESRS, the final version of the delegated act no longer has any topic-specific requirements. All topics are now subject to the materiality condition.

Group	Number	Subject
Cross-cutting	ESRS 1	General Requirements
Cross-cutting	ESRS 2	General Disclosures
Environment	ESRS E1	Climate
Environment	ESRS E2	Pollution
Environment	ESRS E3	Water and marine resources
Environment	ESRS E4	Biodiversity and ecosystems
Environment	ESRS E5	Resource use and circular economy
Social	ESRS S1	Own workforce
Social	ESRS S2	Workers in the value chain
Social	ESRS S3	Affected communities
Social	ESRS S4	Consumers and end users
Governance	ESRS G1	Business conduct

ESRS final

Standard	Title	Date	Legal Status	Document
ESRS delegated regulation	C(2023) 5303 final	31.07.2023	95%
ESRS Topics and Disclosure Requirements	C(2023) 5303 final Annex I	31.07.2023	95%
ESRS Acronyms and Glossary of Terms	C(2023) 5303 final Annex II	31.07.2023	95%

Environmental standards

Standard	Title	Date	Legal Status	Document	Basis for conclusion
ESRS E1	Climate	23.11.2022	75%
ESRS E2	Pollution	23.11.2022	75%
ESRS E3	Pollution	23.11.2022	75%
ESRS E4	Pollution	23.11.2022	75%
ESRS E5	Pollution	23.11.2022	75%

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