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On 6 December 2024, the European Financial Reporting Advisory Group (EFRAG) published a fifth set of responses to 64 questions submitted by users of the European Sustainability Reporting Standards (ESRS) on its Q&A platform.

The summary now contains 157 responses to user questions, categorised by disclosure requirements.

The new answers deal with cross-cutting topics, the mapping of sustainability aspects according to ESRS 1 AR 16 with the disclosure requirements in the topic-related standards as well as some questions from the area of social standards (especially ESRS S1 and S2). These include, among others:

Cross-cutting issues:

  • Conditions for incorporation by reference
  • Company-specific disclosures for the first three reporting years
  • Phase-in requirements for voluntary CSRD reporting
  • Documentation of management and supervisory board expertise and know-how
  • Potential discrepancy between variable remuneration in the context of ESRS 2 and ESRS E1
  • Difference between the current financial effects in accordance with ESRS 2 paragraph 48(d) and the expected short-term financial effects in accordance with ESRS 2 paragraph 48(e)

Mapping of sustainability aspects (ESRS 1 AR 16):

  • Is there a link between the sustainability aspects in accordance with ESRS 1 AR 16 and the disclosure requirements in the topic-related standards?

Social:

  • Difference between non-employees in the organisation's own workforce and workers in the value chain (ESRS S1-7 and S2)
  • Definition of gender
  • What does ‘types of employees who do not enjoy social protection for each applicable significant life event’ mean?
  • Social protection and parental leave (ESRS S1 paragraph 74)
  • Difference between work-related injuries and illnesses
  • Are employees on parental leave or long-term sick leave to be included in the calculation of total annual remuneration?
  • Calculation of the gender pay gap

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.

EFRAG is planning a quiet period for the next few months: Publications of further explanatory notes are not planned until after the reporting season. However, EFRAG TEG and ERFAG SRB will continue to prepare new explanatory notes in the meantime.

The extended collection of questions and answers can be accessed here.

KPMG Express Accounting News

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