What are the ESRS?
ESRS | European Sustainability Reporting Standards
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 2021. 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.
- CSRD Information
- CSRD Solutions with DFGE
- Climate-related Risk and Opportunity Analysis after TCFD
- CSRD-Guideline in EU official language
- Whitepaper: Corporate Sustainability Reporting Directive (CSRD)
- CSRD / ESRS Trainings & Webinars
Important Changes
The non-financial reporting obligation (NFRD – CSR reporting obligation) from 2014 will be significantly renewed by the CSRD, which came into force on January 5, 2023. The CSRD will introduce the following points:
Standardized EU reporting
While different reporting formats applied under the NFRD, the CSRD provides for a reporting obligation exclusively in the management report in accordance with uniform EU reporting standards based on the Sustainable Finance Disclosure Regulations (SFDR) and the EU Taxonomy Directives.
Double Materiality
The principle of materiality is changed from the single materiality of the NFRD to double materiality. This means that matters are considered material if they are material to the company’s performance OR from an environmental/social perspective.
Reporting Obligation
Under national law, companies are obliged to report in accordance with the ESRS. Non-compliance is punishable by fines imposed by the national authorities.
The CSRD also introduces an audit obligation, which is gradually being increased from “limited assurance” to “reasonable assurance”.
Future Topics
It is no longer only retrospective content that is mandatory in sustainability reporting, but also future content/topics, in particular the assessment of opportunities and risks of sustainability aspects on business activities.
NEW: The DFGE ESG Handbook 2024
A guide to the ESRS
Our brand new ESG Handbook 2024 contains an introduction to the CSRD and ESRS standards as well as fact sheets with definitions and recommended actions to help you answer your questions about the rapidly evolving ESG landscape and get an overview of the ESRS standards.
The most important aspects of ESRS include:
1. Scope of Reporting
The ESRS specify which companies are obliged to report and what 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, including specific key figures 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.
European Sustainability Reporting Standards (ESRS)
EFRAG, which is responsible for the introduction of uniform reporting standards, has developed a core reporting standard for each of the sector-independent topics, which have already been published as delegated acts. The ESRS define the content of the CSRD and are based on international frameworks such as GRI, SASB and TCFD.
General Information
- Overview | A brief overview of the EU Directive
- ESRS | Double Materiality
Cross-Cutting-Standards
- ESRS 1 | General Requirements
- ESRS 2 | General Disclosures
Environment
- ESRS E1 | Standards on climate protection (mitigation) and adaptation to climate change
- ESRS E2 | Pollution
- ESRS E3 | Water and marine resources
- ESRS E4 | Biodiversity and ecosystems
- 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
How can the DFGE support you?
DFGE Support
The CSRD was adopted by the European Parliament in November 2022 and will subsequently be transposed into national law by the EU member states.
The current plan envisages a gradual implementation from January 2025 (report for financial year 2024). The CSRD, like the EU Taxonomy and the SFDR, is part of a larger “EU Sustainability Finance Framework” that incorporates sustainability factors at different levels of the economy.
DFGE has over 25 years of experience in sustainability and can help you gather and validate the essential information for the upcoming CSRD. We offer support in the form of complete packages or per module for your management report, your annual report or for your non-financial report.
Our services range from
- CSRD readiness package or
- a double materiality analysis to identify the material sustainability issues for you by identifying impacts on people and the environment as well as risks and opportunities for business success related to these issues,
- the elaboration of the material topics and
- modular & individual packages such as E1 (CCF, CAP, SBTi, TCFD)
- through to the complete company package with CSRD report
We offer you a CSRD roadmap tailored to your needs. This minimizes your internal effort and allows you to focus on the continuous improvement of your identified sustainability areas.
