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ESRS

The European Sustainability Reporting Standards (ESRS) are the official EU set of standards that define what sustainability information companies must report as part of the CSRD. It applies to large and listed companies and ensures comparability, transparency and reliability of ESG information across Europe.

What is ESRS?

ESRS (European Sustainability Reporting Standards) is the EU's new set of sustainability reporting standards that defines what information companies must report on their responsibility as part of the requirements of the Corporate Sustainability Reporting Directive ( CSRD ).

 

The goal is:

  • Unify ESG reporting (environment, social responsibility, governance)

  • Improves transparency, comparability and reliability of reporting

  • Ensures that sustainability information is of the same quality as financial information

 

How is ESRS structured?

 

ESRS consists of three types of standards:

1. Cross-sectoral standards (ESRS 1 and ESRS 2)

  • ESRS 1 – General requirements: defines reporting principles, such as duality (the company's impact on the environment and the environment's impact on the company)

  • ESRS 2 – General information: includes information on governance, strategy, business model, risks and objectives – mandatory for all companies

2. Subject-specific standards (ESRS E1–E5, S1–S4, G1)

  • Environment: climate change, pollution, water resources, biodiversity, circular economy

  • Social responsibility: own workforce, employees in the value chain, communities, consumers

  • Governance: business ethics, corruption, lobbying, supply chains

3. Sector-specific standards (coming in 2026)

  • Targeting industries such as energy, mining, transportation, agriculture

 

How is the ESRS applied?

1. Dual materiality assessment

The company must assess:

  • Which ESG themes are relevant to its operations?

  • Which ESG themes are impactful to its stakeholders and the environment?

If a topic is not material, the company must clearly justify it.

 

2. Gap analysis

The company compares its current reporting with ESRS requirements and identifies gaps.

 

3. Data collection and systems

Reporting requires accurate and often quantitative data – for example, emissions according to Scope 1–3 in accordance with the GHG Protocol.

4. Publication of the report

The report will be published as part of the activity report and submitted digitally to the ESAP portal (EU Single Access Point).

 

Who is affected by ESRS?

The application of ESRS is directly related to companies covered by the CSRD :

  • Large companies: over 250 employees, over 50 M€ turnover or over 25 M€ balance sheet

  • Listed SMEs: relaxed requirements, reporting starts in 2027–2028

  • Foreign companies operating in the EU with a turnover in the EU exceeding €150 million

 

A company must always report ESRS 2, and ESRS E1 (climate change) and S1 (own workforce) if they employ more than 250 people.

 

Summary

Sub-area - Explanation

  • ESRS - EU standard for sustainability reporting

  • Goal - Harmonization and transparency of ESG information

  • Structures - Cross-cutting, subject-specific and sector-specific standards

  • Application - Dual materiality, gap analysis, data collection

  • Target group - Companies in the EU covered by the CSRD

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