EFRAG extends consolidated set of explanations from the ESRS implementation Q&A platform

On 26 July 2024, the European Financial Reporting Advisory Group (EFRAG) published a fourth set of answers to 25 questions submitted by users of the European Sustainability Reporting Standards (ESRS) on its Q&A platform.

The summary now contains 93 answers to user questions, sorted by disclosure requirements.

The new answers deal almost exclusively with cross-cutting issues and questions from the area of environmental standards (especially ESRS E1). Among others, these are:

Cross-cutting issues:

• Relationship between climate risk analysis and impacts, risks and opportunities
• Localisation of policies, actions and targets in the Sustainability Report (SR)
• Affiliation of the shareholders' meeting to the administrative, management and supervisory bodies
• Risks and opportunities in the context of financial materiality
• Possibility of outsourcing information to an annex to the SA

Environment:

• Disaggregation of total issues
• Assets at risk
• "Net zero targets" and reduction of greenhouse gas emissions (GHG emissions)
• List of regulated emissions trading schemes
• Definitions of different types of GHG emission removals

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 extended collection of questions and answers can be accessed here.