The Commission adopted the European Sustainability Reporting Standards

The European Commission’s Corporate Sustainability Reporting Directive (CSRD) stipulates that companies shall apply standards when submitting their reports on sustainability. 

2023. The European Commission adopted the European Sustainability Reporting Standards (ESRS) on 31 July 2023, which is another step forward in the transition to a sustainable economy in the EU.

ESRS standards cover the full range of environmental, social and governance issues, including climate change, biodiversity and human rights. They provide information for investors to understand the sustainability impacts and risks of companies they are investing in or intend to invest in.

Compared to previous draft standards prepared by EFRAG, the Commission has introduced numerous amendments that will make it easier for companies to prepare their sustainability reports in the first few years. These amendments ensure that standards are proportionate without undermining the attainment of policy objectives.

The amendments fall into the following three categories:

• certain reporting obligations are introduced gradually;
• companies have more power to decide which information is considered relevant (“material”)
• the application or certain requirements has become voluntary.