Reporting Standards (ESRS) is a set of new standards in sustainability reporting in the EU. These standards outline how companies should report on their environmental, social, and governance (ESG) performance to comply with the EU’s new Corporate Sustainability Reporting Directive (CSRD).
The ESRS standards were developed by the European Financial Reporting Advisory Group (EFRAG) and were finally approved by the EU Commission at the end of July 2023. The goal of the standards is to ensure that companies report comparable, relevant, and reliable sustainability information.
In addition to the 12 approved ESRS standards, EFRAG will develop and release sector-specific standards and standards for small and medium-sized enterprises (SMEs) over the next few years. The standards for SMEs will take into account the unique challenges and needs that SMEs face and will be less stringent compared to the standards for larger companies.
From 2024, all large companies that meet at least two out of the following three criteria are covered:
From 2024, all large companies that meet at least two out of the following three criteria are covered:
From 2026, all international non-EU based companies with a net turnover exceeding 150 million EUR within the EU will be covered.
It's therefore only a matter of time before many companies are obligated to report according to ESRS. Instead of viewing this standard as a cost, it can be turned into a competitive advantage if a company becomes one of the first in its industry to meet the standard.
At Leave a Mark Consulting Group, we have several years of experience with sustainabilityrapportering and many years experience with standards.We help numerous clients navigate the new requirements and report in accordance with the new ESRS standards.
Our expertise ensures that your company is prepared and capable of meeting these new reporting standards with confidence.
