ESRS (European Sustainability Reporting Standards) - IM - Revision history

HansdG: /* What is ESRS? (European Sustainability Reporting Standards) */

2025-03-24T05:24:34Z

What is ESRS? (European Sustainability Reporting Standards)

← Older revision		Revision as of 07:24, 24 March 2025
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	The '''European Sustainability Reporting Standards (ESRS)''' is the framework that supports the '''Corporate Sustainability Reporting Directive (CSRD)'''. It is a comprehensive ESG reporting standard introduced by the '''European Union''' to improve the quality and consistency of sustainability disclosures for companies operating in the EU.		The '''European Sustainability Reporting Standards (ESRS)''' is the framework that supports the '''Corporate Sustainability Reporting Directive (CSRD)'''. It is a comprehensive ESG reporting standard introduced by the '''European Union''' to improve the quality and consistency of sustainability disclosures for companies operating in the EU.

	[https://eur-lex.europa.eu/eli/reg_del/2023/2772/oj/eng]		[https://eur-lex.europa.eu/eli/reg_del/2023/2772/oj/eng Official EU Journal]

	=== How Does ESRS Relate to ESG? ===		=== How Does ESRS Relate to ESG? ===

HansdG: /* What is ESRS? (European Sustainability Reporting Standards) */

2025-03-24T05:23:47Z

What is ESRS? (European Sustainability Reporting Standards)

← Older revision		Revision as of 07:23, 24 March 2025
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	The '''European Sustainability Reporting Standards (ESRS)''' is the framework that supports the '''Corporate Sustainability Reporting Directive (CSRD)'''. It is a comprehensive ESG reporting standard introduced by the '''European Union''' to improve the quality and consistency of sustainability disclosures for companies operating in the EU.		The '''European Sustainability Reporting Standards (ESRS)''' is the framework that supports the '''Corporate Sustainability Reporting Directive (CSRD)'''. It is a comprehensive ESG reporting standard introduced by the '''European Union''' to improve the quality and consistency of sustainability disclosures for companies operating in the EU.

	[https://eur-lex.europa.eu/eli/reg_del/2023/2772/oj/eng~~\|Official EU Website~~]		[https://eur-lex.europa.eu/eli/reg_del/2023/2772/oj/eng]

	=== How Does ESRS Relate to ESG? ===		=== How Does ESRS Relate to ESG? ===

HansdG: /* What is ESRS? (European Sustainability Reporting Standards) */

2025-03-24T05:22:14Z

What is ESRS? (European Sustainability Reporting Standards)

← Older revision		Revision as of 07:22, 24 March 2025
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	The '''European Sustainability Reporting Standards (ESRS)''' is the framework that supports the '''Corporate Sustainability Reporting Directive (CSRD)'''. It is a comprehensive ESG reporting standard introduced by the '''European Union''' to improve the quality and consistency of sustainability disclosures for companies operating in the EU.		The '''European Sustainability Reporting Standards (ESRS)''' is the framework that supports the '''Corporate Sustainability Reporting Directive (CSRD)'''. It is a comprehensive ESG reporting standard introduced by the '''European Union''' to improve the quality and consistency of sustainability disclosures for companies operating in the EU.

			[https://eur-lex.europa.eu/eli/reg_del/2023/2772/oj/eng\|Official EU Website]

	=== How Does ESRS Relate to ESG? ===		=== How Does ESRS Relate to ESG? ===

HansdG: Created page with "== What is ESRS? (European Sustainability Reporting Standards) == The '''European Sustainability Reporting Standards (ESRS)''' is the framework that supports the '''Corporate Sustainability Reporting Directive (CSRD)'''. It is a comprehensive ESG reporting standard introduced by the '''European Union''' to improve the quality and consistency of sustainability disclosures for companies operating in the EU. === How Does ESRS Relate to ESG? === The ESRS is structured arou..."

2025-03-24T05:19:56Z

Created page with "== What is ESRS? (European Sustainability Reporting Standards) == The '''European Sustainability Reporting Standards (ESRS)''' is the framework that supports the '''Corporate Sustainability Reporting Directive (CSRD)'''. It is a comprehensive ESG reporting standard introduced by the '''European Union''' to improve the quality and consistency of sustainability disclosures for companies operating in the EU. === How Does ESRS Relate to ESG? === The ESRS is structured arou..."

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== What is ESRS? (European Sustainability Reporting Standards) ==

The '''European Sustainability Reporting Standards (ESRS)''' is the framework that supports the '''Corporate Sustainability Reporting Directive (CSRD)'''. It is a comprehensive ESG reporting standard introduced by the '''European Union''' to improve the quality and consistency of sustainability disclosures for companies operating in the EU.

=== How Does ESRS Relate to ESG? ===
The ESRS is structured around the same '''Environmental (E)''', '''Social (S)''', and '''Governance (G)''' principles but introduces a '''more detailed structure''' with:
* '''Topical standards'''
* '''Sector-specific standards'''
* '''Entity-specific disclosures'''

ESRS emphasizes '''double materiality''', meaning companies must report both:
* '''Impact Materiality:''' Their effect on the environment and society.
* '''Financial Materiality:''' How sustainability factors affect their business.

== ESRS Structure Overview ==
The ESRS standards are organized into '''cross-cutting standards''' and '''topical standards'''.

=== Cross-Cutting Standards (General Requirements) ===
* '''ESRS 1:''' General requirements (explains the fundamental concepts for ESG reporting).
* '''ESRS 2:''' General disclosures (governance, strategy, and business model).

=== Topical Standards ===

==== Environmental Standards (E) ====
{| class="wikitable"
! Code
! Topic
! Description
|-
| '''ESRS E1''' || Climate Change || Greenhouse gas emissions (Scope 1, 2, and 3), energy efficiency, and adaptation strategies.
|-
| '''ESRS E2''' || Pollution || Air, water, and soil pollution, plus reduction strategies.
|-
| '''ESRS E3''' || Water & Marine Resources || Water management, consumption, and impacts on aquatic ecosystems.
|-
| '''ESRS E4''' || Biodiversity & Ecosystems || Impact on ecosystems, deforestation prevention, and conservation efforts.
|-
| '''ESRS E5''' || Resource Use & Circular Economy || Material efficiency, waste reduction, and circular economy practices.
|}

==== Social Standards (S) ====
{| class="wikitable"
! Code
! Topic
! Description
|-
| '''ESRS S1''' || Own Workforce || Workforce diversity, working conditions, and equal opportunity.
|-
| '''ESRS S2''' || Workers in the Value Chain || Labor rights, fair wages, and working conditions throughout the supply chain.
|-
| '''ESRS S3''' || Affected Communities || Impact on local communities and social investment.
|-
| '''ESRS S4''' || Consumers & End Users || Product safety, data privacy, and consumer protection.
|}

==== Governance Standards (G) ====
{| class="wikitable"
! Code
! Topic
! Description
|-
| '''ESRS G1''' || Business Conduct || Ethics, anti-corruption, and governance structures.
|}

== Key Differences Between ESRS and Traditional ESG Standards ==
{| class="wikitable"
! Aspect
! ESRS
! Other ESG Frameworks (e.g., GRI, SASB)
|-
| '''Approach''' || Mandatory for CSRD-covered companies || Voluntary (for non-CSRD markets)
|-
| '''Scope''' || Emphasis on '''double materiality''' || Focuses primarily on financial materiality
|-
| '''Granularity''' || Highly detailed with mandatory disclosures for key ESG topics || Often more flexible and principle-based
|-
| '''Sector-Specific''' || Expanding with dedicated sector standards || Industry-specific standards exist but are less integrated
|-
| '''Digital Format''' || Requires data in machine-readable format (XBRL) || Digital integration is encouraged but not mandatory
|}

== Who Must Follow ESRS? ==
* Companies operating in the EU that meet CSRD thresholds.
* Large non-EU companies with significant EU business presence (starting 2028).
* Initially applies to large listed companies; will expand to SMEs in future phases.

== Key Takeaway ==
The '''ESRS framework''' aligns with ESG but introduces a '''more structured, mandatory''' approach for companies in the EU, ensuring '''consistent, comparable, and transparent''' sustainability reporting.

[[Category:Information Model]]