EFRAG submits draft ESRS to EC

  • EFRAG document (dk green) Image

23 Nov 2022

The European Financial Reporting Advisory Group (EFRAG) has submitted its draft European Sustainability Reporting Standards (ESRS) to the European Commission (EC).

The number of drafts has been brought down to twelve, two cross-cutting draft standards, five topical draft standards on environment, four topical draft standards on social aspects, and one topical draft standard on governance:

  • Cross-cutting:
    • Draft ESRS 1 General requirements
    • Draft ESRS 2 General disclosures
  • Environmental:
    • Draft ESRS E1 Climate change
    • Draft ESRS E2 Pollution
    • Draft ESRS E3 Water and marine resources
    • Draft ESRS E4 Biodiversity and ecosystems
    • Draft ESRS E5 Resource use and circular economy
  • Social:
    • Draft ESRS S1 Own workforce
    • Draft ESRS S2 Workers in the value chain
    • Draft ESRS S3 Affected communities
    • Draft ESRS S4 Consumers end users
  • Governance:
    • Draft ESRS G1 Business conduct

In developing the final drafts, the EFRAG Sustainability Reporting Board (SRB) acknowledged that comment letters had claimed that EFRAG was asking too much and that the proposed disclosure requirements went far too deep. As a consequence the final drafts require considerably less information/data points to be disclosed. The SRB also considered whether re-exposure of the final drafts was required but came to the conclusion that the need to re-expose would only apply if there were any fundamental changes that do not address comments received in the public consultation.

As a next step, the EC now has to approve the ESRS drafts or revise them itself before they are to be applied as a delegated act by companies within the scope of the Corporate Sustainability Reporting Directive (CSRD).

Please click for the press release and access to the draft ESRS on the EFRAG website.

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