Adopts the European Sustainability Reporting Standards
31 Jul 2023
On 31 July 2023, the European Commission adopted the European Sustainability Reporting Standards (ESRS), aligning with the Corporate Sustainability Reporting Directive (CSRD). The CSRD mandates companies to employ these standards for fulfilling their legal sustainability reporting obligations, ensuring comparable and reliable information on how sustainability matters impact a company’s development, performance, and position across the European Union.
The directive aims to provide investors with comprehensive insights into the sustainability impact of their investments in various companies. The ESRS is obligatory for large companies, listed small and medium-sized companies (SMEs), and certain non-EU companies with significant EU presence. Embracing a “double materiality” approach, the ESRS compels companies to report on both their impacts on people and the environment and how social and environmental factors pose financial risks and opportunities for their business. The ESRS came into force on 25 December 2023.
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Type:
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Treatment and operation (Company laws and corporate governance)
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Treatment and operation (Operational conditions)
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Industry:
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Not industry specific (SDG)
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