What are the ESRS?
European Sustainability Reporting Standards (ESRS)
The ESRS (European Sustainability Reporting Standards) are European sustainability reporting standards developed by the European Union to standardize and improve corporate sustainability reporting. These standards are part of the Corporate Sustainability Reporting Directive (CSRD), which was adopted by the EU in 2024. The aim of the ESRS is to increase the transparency and comparability of sustainability information and to ensure that companies report comprehensively and consistently on their sustainability practices.
The key aspects of ESRS:
1. Scope of Reporting
The ESRS specify which sustainability information must be disclosed. This applies to large companies and listed companies as well as certain small and medium-sized enterprises (SMEs) operating in specific sectors.
2. Sustainability Dimensions:
The standards cover various sustainability dimensions, including environmental, social and governance (ESG) aspects. Companies must report on topics such as climate change, environmental management, social responsibility, human rights, working conditions and corporate governance.
3. Detailed Requirements
The ESRS contain detailed requirements regarding the way in which information is to be recorded, measured and reported. This includes qualitative and quantitative data points, including specific metrics and indicators.
4. Transparency and Comparability
The standardization of reporting increases transparency and improves comparability between companies. This helps investors, stakeholders and the public to make informed decisions and better understand the sustainability performance of companies.
5. Integration with other Regulations
The ESRS are designed to be compatible with other international standards and frameworks such as the Sustainability Accounting Standards Board (SASB) and the Global Reporting Initiative (GRI) Standards. This is intended to support consistency and comparability at a global level.
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A guideline along the ESRS
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Reporting Standards
The European Financial Reporting Advisory Group (EFRAG) develops the ESRS on behalf of the EU Commission. These standards consist of sector-independent (core standards), sector-specific and organization-specific standards.
In November 2022, EFRAG published the first drafts of the ESRS and submitted them to the EU Commission, which adopted the final first set of ESRS on July 31, 2023.
Since 2024, the ESRS have been gradually coming into force (for companies already covered by the CSRD). All non-listed, large, medium-sized companies must publish an ESRS-compliant CSRD report together with their management report for the first time from 2026 for the 2025 reporting year.
In parallel, EFRAG is currently working on a second set of standards (Sector-Specific Standards), which will include specific requirements for certain industries.
Sector-specific ESRS Standards
At the current time (January 2025), there are no final sector-specific ESRS standards. The development of these standards is still in progress. However, drafts are already well advanced for some sectors with special ESG risk profiles:
- Oil & Gas
- Mining & Coal
- Agriculture & fisheries
- Road transportation
Working papers have already been prepared and discussed in the EFRAG committees for these four sectors and for the SEC 1 standard on sector classification
The publication of the sector-specific standards originally planned for mid-2024 was postponed by the European Commission in February 2024 to June 2026. This is intended to give companies more time to focus on implementing the first ESRS series. EFRAG is currently working on templates for an expected 30+ sector-specific ESRSs
The development process for a standard can take up to 24 months, pending final approval by the European Commission.
Simplified standards are being developed for small and medium-sized enterprises (SMEs). These are intended to support SMEs in implementing the CSRD requirements. Find out more here.
Company-specific standards are also planned, but without a specific timeframe.
The ESRS currently consist of 12 standards, which are divided into 4 groups:
- General standards (ESRS 1 and 2)
- Environmental standards (ESRS E1 to E5)
- Social standards (ESRS S1 to S4)
- Governance standard (ESRS G1)
EFRAG regularly publishes questions and answers on the ESRS to support companies in implementing them
Current information can be found here.
European Sustainability Reporting Standards (ESRS)
Environment
- ESRS E1 | Climate change
- ESRS E2 | Pollution
- ESRS E3 | Water and marine resources
- ESRS E4 | Biodiversity & Eco Systems
- ESRS E5 | Resource use and circular economy
Social
- ESRS S1 | Own workforce
- ESRS S2 | Workers in the value chain
- ESRS S3 | Affected communities
- ESRS S4 | Consumers and end-users
Governance
- ESRS G1 | Business Conduct
The European Financial Reporting Advisory Group (EFRAG)
Who is EFRAG and what is its mission?
The European Financial Reporting Advisory Group (EFRAG) was founded in 2001 with the support of the European Commission. European interest groups as well as national and civil society organizations are among the member organizations. EFRAG’s mission is to promote European financial and sustainability reporting in the public interest.
As part of its activities in the field of accounting, EFRAG supports the European Commission in the development and adoption of International Financial Reporting Standards (IFRS). Through its new role in the CSRD, EFRAG not only develops full drafts of the EU sustainability reporting standards, but also advises the European Commission during the implementation process of the CSRD with the help of its Sustainability Reporting Technical Expert Group (TEG).
Further Information about EFRAG
EFRAG is divided into technical expert groups (TEGs), working groups and advisory committees within the two pillars of the Financial Reporting Board and the Sustainability Reporting Board. In the consultation process, EFRAG takes into account all stakeholder input and specific European circumstances. Transparency, governance, due process and public accountability strengthen EFRAG’s legitimacy and make it a strong European voice in corporate reporting. EFRAG is funded by its members and the European Union.
Your Advantages
Why you should contact DFGE for CSRD
With a view to the demanding reporting standards of the ESRS, we at DFGE focus on the most important requirements that companies will have to meet in the future. With a scientific approach and efficient solutions, we support you in achieving your goals.
Our services on the way to the first CSRD-compliant report can be found here.
- Everything from a single source – as part of our holistic approach, we can accompany you on the entire CSRD journey and offer module components such as Corporate Carbon Footprint (CCF), Climate Transition Plan (CTP), risk and opportunity analyses, EU taxonomy or strategies, e.g. on biodiversity or the circular economy.
- Focus on SMEs: For over 25 years, we have been supporting SMEs in the implementation of sustainability projects and reporting requirements in accordance with internationally recognized standards such as TCFD, GRI or UNGC.
- Holistic customer support through our Sustainability Intelligence approach
- We see ourselves as a coach, consultant and service provider – to minimize resources and effort on your side
- We are not an advertising agency that makes your data prettier. Our roots are in research and that’s how we still work today.
