Road towards better sustainability reporting – European sustainability reporting standards (ESRS)

The EU's Corporate Sustainability Reporting Directive (CSRD) entered into force in 2023. The directive mandates that companies provide sustainability information prepared in accordance with the European Sustainability Reporting Standards (ESRS) in a separate section of the management report. EU's EFRAG drafted twelve ESRS Standards, which are based on a double materiality lens. Standards will be used for the 2024 fiscal year, noting that reliefs for some requirements are provided in the first year a company applies the Standards. The directive also mandates limited assurance engagements on the company's sustainability reporting in the first years.

Jona Basha*

SIR*IUS 4/2023