Under the European Commission’s proposal for a Corporate Sustainability Reporting Directive (CSRD), EU Sustainability Reporting Standards (ESRS) shall be adopted. The European Financial Reporting Advisory Group (EFRAG) was requested by Commissioner McGuinness to provide technical advice to the European Commission preparing draft standards.
From April until August 2022 EFRAG consulted on the first set of draft ESRS. Finalised versions – adopted through Delegated Acts by the European Commission – will constitute reporting requirements under the proposed CSRD. The European Commission will hold another consultation before adopting the first set of ESRS into legislation through delegated acts by June 2023.
The following draft ESRS were published for consultation:
- ESRS 1 General principles
- ESRS 2 General, strategy, governance and materiality assessment disclosure requirements
- ESRS E1 Climate change
- ESRS E2 Pollution
- ESRS E3 Water and marine resources
- ESRS E4 Biodiversity and ecosystems
- ESRS E5 Resource use and circular economy
- ESRS S1 Own workforce
- ESRS S2 Workers in the value chain
- ESRS S3 Affected communities
- ESRS S4 Consumers and end-users
- ESRS G1 Governance, risk management and internal control
- ESRS G2 Business conduct
The second set of draft ESRS will include sector- and SME-specific standards, to be consulted on in 2023 and adopted via delegated acts in June 2024.
The PRI has provided views and recommendations on sustainability reporting developments in Europe through consultation responses and public statements.
Under PRI’s Driving Meaningful Data program, we are working with our signatories to engage on standard setting in the EU. So far this has included:
- PRI letter to the European Commission calling for maintaining the integrity and timeline for implementation of the CSRD and corresponding ESRS Set 1.
- PRI statement on draft European Sustainability Reporting Standards
- PRI consultation responses reflecting signatories’ views and the PRI’s own research
- A signatory briefing note summarising the ESRS Exposure Drafts
- An informative blog on the content of the provisionally agreed CSRD and ESRS Exposure Drafts, and next steps on the ESRS
- Technical discussions as part of PRI’s Corporate Reporting Reference Group
- PRI, Eurosif, IIGCC, EFAMA and UNEP FI investor sign-on statement (should link to the above page) on European Sustainability Reporting Standards
For any queries about our work and engagement in this area, please contact [email protected].
