Companies that fall within the scope of the Corporate Sustainability Reporting Directive (CSRD) must now prepare for extended sustainability reporting, as the European Commission published the final text of the first set of European Sustainability Reporting Standards (ESRS) on July 31, 2023.
Here you will find the link to download the standards.
Determination of topics based on dual materiality
Affected companies must use the concept of double materiality to assess which topics they must report on. There is the inside-out (impact materiality) and the outside-in (financial materiality) perspective. In an impact materiality assessment, companies determine the actual and potential positive and negative impacts of their business activities on various sustainability issues. The financial materiality assessment looks at the opportunities and risks of sustainability issues for a company’s financial situation and the future viability of its business model.
Core topics of the first set of the ESRS
The first set comprises 12 standards, two overarching and ten topic-specific, which require information on the following core topics, among others:
The EU Parliament and the EU Council now have up to four months to raise objections. If they do not raise any objections, the first set of ESRS will apply to the first companies for the 2024 reporting period. In our post about the CSRD, you will find an overview of the timing of the reporting obligation for affected companies.
OVERVIEW
EUROPEAN SUSTAINABILITY REPORTING STANDARDS
References:
European Commission: Corporate Sustainability Reporting Directive (CSRD)
Advantages of sustainability reporting for companies
Comprehensive sustainability reporting can be of considerable benefit to companies. It creates trust among investors and stakeholders, strengthens the company’s reputation and helps to create long-term value. We can support you in implementing the ESRS with professional advice and many years of expertise in the field of CSR. We offer customized solutions to seamlessly integrate ESRS into your business processes, ensure compliance and take responsibility.
