The European Sustainability Reporting Standards (ESRS) are a set of sustainability reporting standards developed by the European Financial Reporting Advisory Group (EFRAG) to guide companies in disclosing their Environmental, Social, and Governance (ESG) performance. These standards are essential for companies under the EU's Corporate Sustainability Reporting Directive (CSRD), aiming to enhance transparency and accountability in sustainability matters.
The ESRS adopts a "double materiality" approach, requiring companies to report both:
Key components of the ESRS include:
The ESRS is a key element of the EU's broader sustainability agenda, particularly the Corporate Sustainability Reporting Directive (CSRD), which aims to ensure that large companies provide high-quality, consistent sustainability information that is essential for achieving the EU's climate and social goals.
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