On June 9th, the European Commission publicised the final draft act of the European Sustainability Reporting Standards (ESRS), which are now open for public consultation till July 7th.
This final chapter of the adoption of the ESRS will, after its conclusion, provide companies with a content guideline on how to report their non-financial information covering environmental, social, and governance matters as required by the Corporate Sustainability Reporting Directive (CSRD). Minor changes were made to the now-final drafts of the ESRS compared to the first set of standards, published in November 2022: As one of the most important concepts of the ESRS, companies must assess which of the environmental, social, and governance matters within the ESRS are material to their own activities based on the concept of double materiality. According to the first drafts of the ESRS from November 2022 some topics, i.e. ESRS 2 General Disclosures, ESRS E1 Climate Change, and ESRS S1 Own Workforce, for companies with over 250 employees, would have had to be disclosed irrespective of the outcome of this materiality assessment. In the final drafts, this only applies to ESRS 2 General Disclosures and disclosure of the other topics will underly double materiality assessment.
Now the public has the chance to express its views on the changes made to the ESRS. VIRIDAD encourages all affected third parties to take this opportunity to provide feedback to the European Commission on the current draft status.
We have already started to support our customers with the implementation of the upcoming CSRD and ESRS. Contact us (firstname.lastname@example.org) to learn more.
Find out more about recent developments regarding the EU-Taxonomy and other non-financial reporting efforts of the European Union on our blog.