The European Commission officially adopted the ESRS on July 31, 2023, as a mandatory disclosure to be completed by all companies in scope of the CSRD.
The European Sustainability Reporting Standards (ESRS-CSRD) standard will impact 50,000+ EU and non-EU companies as mandatory reporting will be required of the CSRD, using the ESRS, from 2025.
The European Commission released the final version of the first 12 European Sustainability Reporting Standards (ESRS-CSRD) this week. While confirming that the #ESRS #CSRD will ensure a ‘very high degree of interoperability’ between EU standards and global standards set by GRI and the International Sustainability Standards Board (ISSB).
Since 2021, Global Reporting Initiative (GRI) has supported the technical work to develop the ESRS through a co-creation agreement with EFRAG. GRI CEO, Eelco van der Enden said: “As provider of the world’s most widely used standards for impacts, we support the maximum level of interoperability between ESRS and GRI, which will mean double reporting by companies can be avoided.”
Highlights:
* Climate ESRS 1 requires firms to demonstrate non-materiality, making climate relevant for most companies.
* Double materiality is maintained, considering both risks to and posed by the firm.
* Reporting must cover the entire value chain, but certain relief and phase-in provisions are available to ease the burden.
* EU states are expected to adopt the ESRS by the end of 2023, and mandatory reporting under the CSRD begins in 2024.
* Disclosures must be provided in a way that allows them to be subject to assurance.
Source: Visual by Nossa Data
