ESRS | Sustainability reporting

Under the EU’s Corporate Sustainability Reporting Directive (CSRD), companies in the EU will need to prepare extensive sustainability reports. The reporting requirements are set out in European Sustainability Reporting Standards (ESRSs).

ESRSs will be applied by:

• all large companies incorporated and all companies listed in the EU;
• large subsidiaries of non-EU parents (group exemptions apply); and
• non-EU companies with a turnover in the EU of more than EUR 150 million.

The ESRSs will have a significant impact on the scope, volume and granularity of sustainability-related information to be collected and disclosed by companies. They introduce the concept of double materiality and expand a company’s reporting boundary to cover material information across its value chain. A company will need to report on how its activities and value chain affect the environment and people, as well as how sustainability-related matters affect its cash flows, financial position and financial performance.