Legal & Regulatory News

European Commission adopts the European Sustainability Reporting Standards

On 31 July 2023, the European Commission (EC) adopted the European Sustainability Reporting Standards (ESRS). The ESRS cover the broad range of ESG issues – including biodiversity and human rights. The EC worked closely with international regulatory bodies such as the International Sustainability Standards Board and the Global Reporting Initiative in order to ensure global interoperability and prevent companies from having to undergo unnecessary double reporting.

The ESRS will apply to all companies that come under the Corporate Sustainability Reporting Directive (CSRD), coming into effect in 2024. Organisations subject to the CSRD must submit annual sustainability reports that are electronically readable and easily accessible to investors and other stakeholders.

There are 12 ESRS, with the standards taking a “double materiality” perspective, pushing companies to report on:

• impacts on people;
• impacts on the environment; and
• how social and environmental issues create financial risks and opportunities for the company.

Click here to the press release.

Click here for the text of delegated regulation on the ESRS.