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On 1 March 2024, the European Financial Reporting Advisory Group (EFRAG) published a second set of answers to twelve questions submitted by users of the European Sustainability Reporting Standards (ESRS) on its question-and-answer platform.

The answers essentially deal with cross-cutting issues and questions from the area of social standards as well as one question from the environmental standards. In detail, these are

Cross-cutting issues:

  • Materiality of positive impacts
  • SBM-3 Presentation of the IROs covered by the ESRS and entity-specific IROs
  • Definition of administrative, management and supervisory bodies
  • Use of phase-in for undertakings that are categorised as large undertakings for the first time


  • Climate-related targets (esp. net zero targets) and their connection to projects to reduce and mitigate greenhouse gases


  • Information on the number of permanent and temporary employees and employees with non-guaranteed working hours
  • Reporting outside the structure of the individual disclosure requirements
  • Inclusion of variable remuneration components in the "gender pay gap" metric
  • Information on resources for measures and what the resources relate to (S1-4)
  • Information on employees covered by workers’ representatives (S1-8)
  • Linkage between disclosures on social aspects and disclosures in the financial statements


  • Application of provisions of the Capital Requirements Regulation (Regulation (EU) 575/2013) in reporting in accordance with ESRS

EFRAG's Q&A platform is intended to provide guidance on technical implementation issues related to the ESRS (Commission Delegated Regulation (EU) 2023/2772), but they are not legally binding and are not legislative in nature. With its answers, EFRAG aims to support preparers in the implementation of the ESRS. Preparers of sustainability reports can submit their questions via an online form.

The second set of explanatory notes is published on the EFRAG website

KPMG Express Accounting News

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