The European Sustainability Reporting Standards

The double materiality assessment (DMA) serves as the foundation for defining the scope of a company’s sustainability report. This assessment identifies the sustainability issues that are critical to each specific company and business. The key sustainability matters identified through this process determine which topical standards apply to the company and must be included in the report…

Due diligence, within the framework of sustainability reporting, is the process that companies use to identify, prevent, limit and report how they manage actual and potential negative impacts on the environment and people connected to their business operations.

ESRS 2 – General disclosures is part of the European Sustainability Reporting Standards (ESRS) and is an overarching standard that applies to all companies that must report according to CSRD, regardless of the industry the company operates in. The purpose of the standard is to create a framework for the preparation of the sustainability statement with the aim of increasing transparency and comparability in sustainability reporting between European companies

ESRS G1 – Business conduct is the thematic standard that focuses on clarifying the company’s strategies, methods, processes and procedures, as well as its results, in terms of business conduct and business ethics. The standard aims to promote good corporate governance, business conduct practices and ethical behaviour along the entire value chain. Central aspects of ESRS G1 include transparency in decision-making, integrity in business relationships and responsible management of company resources…

The topical standard ESRS S4 – Consumers and end-users focuses on the company’s responsibility towards those who use the company’s goods and services. According to this standard, companies must report how their operations and activities along the company’s value chain affect these groups, with a particular focus on aspects such as privacy, security and access to products and services…

ESRS S3 – Affected communities is part of the European Sustainability Reporting Standards (ESRS) and focuses on how companies’ various activities across the value chain interact with and affect different communities with their operations, including indigenous and local communities. The standard emphasises the importance of respecting human rights and ensuring that business is conducted in a way that is fair and sustainable for all parties involved, both in the short and long term…

The purpose of the topical standard ESRS S2 – Workers in the value chain is to clarify what information the company must report regarding workers in the value chain. The standard provides instructions for how companies should identify, manage and report significant consequences, risks and opportunities for workers in the value chain that arise in connection with the company’s own operations, upstream (e.g. with suppliers) or downstream (e.g. with customers)…

The new ESRS standard affects the way information is reported and places new demands on the review of companies’ operations. The new requirements set within ESRS S1 – Own workforce are more comprehensive than previous accounting requirements and involve transparent reporting of the conditions for the company’s employees…

The fifth topical standard in environmental information in the European Sustainability Reporting Standards (ESRS), is E5 – Resource use and circular economy and is part of the EU’s broader strategy to create a sustainable and resource-efficient economy. The focus lies in detailing the company’s resource utilisation, waste management practices, and commitment to fostering a circular business model The goal of the standard is to enhance transparency in resource utilisation, leading to long-term waste reduction, optimization of…

Biodiversity, which refers to the variety of life in all its forms and levels, from genes to species and ecosystems, plays a critical role in maintaining the Earth’s life support system. In the topical standard ESRS E4, companies are expected to account for their impact on biodiversity and ecosystems through their own operations as well as upstream and downstream activities along the value chain…

The topical standard E3 – Water and marine resources is part of the European Sustainability Reporting Standards (ESRS) and is designed to instruct companies on how to report their impact on water and oceans. Under the CSRD directive, reporting on this will be crucial for many companies across various industries…

ESRS E2 – Pollution in the European Sustainability Reporting Standards (ESRS) pertains to the emissions of substances by companies throughout their operations and value chain, impacting both the environment and society. Pollution refers to…

When companies start to tackle CSRD and its reporting, we see that the first area most companies begin with is the sustainability issue of climate limitations, under ESRS E1 – Climate Change. This simply means that companies must describe how they and their operations contribute to meeting the goals of the Paris Agreement. To do so in a structured and traceable way, it is central to have…