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Anticipation grows as ESG reporting is becoming a fundamental code of conduct – what do organisation’s need to know, and how do they comply to these mandatory standards? In this final (two-part) article series, we will understand what the European Sustainability Reporting Standards (ESRS) are and how to report correctly in a digital world.
Taking a step back, we know that the ESRS were finalised by the European Financial Reporting Advisory Group (EFRAG) late last year. The standards are legally set by the Corporate Sustainability Reporting Directive (CSRD) and are intended to help companies manage and communicate their sustainability performance.
In the build up to this, EFRAG was appointed by the European Commission to create the standards. After months of consultations with various stakeholders, auditors, reporters and investors the EFRAG were able to produce a finalized draft to the European Commission. Working alongside member states and parliamentary bodies such as European Securities and Markets Authority (ESMA), the European Commission will be expected to publish the completed ESRS under the CRSD for June 2023.
These processes will be a phased approach as there will be many complexities and challenges for each company to demonstrate these.
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