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HORIZON

FROM

THE

BRIDGE

ulators, and other stakeholders need consistent, The European Sustainability Reporting Standards
comparable, and reliable data to assess a com- (ESRS) provide detailed guidelines on what com-
pany’s ESG performance. In response, regulatory panies must disclose to comply with the CSRD.
bodies around the world are setting frameworks for These standards are designed to ensure that sus-
ESG reporting. One of the most significant devel- tainability reporting is consistent, comparable, and
opments in this area is the Corporate Sustainabil- relevant across the EU.
ity Reporting Directive (CSRD) and the European The ESRS cover a broad range of ESG topics,
Sustainability Reporting Standards (ESRS) in the including climate change, biodiversity, social and
European Union. human rights issues, and governance structures.
Some key features of the CSRD include: Some notable aspects of the ESRS include:
Mandatory Sustainability Reporting: The CSRD Sector-Specific Guidance: The ESRS will even-
mandates that companies include sus- tually provide sector-specific standards,
tainability information in their manage- recognising that different industries face
ment reports, alongside their financial different ESG risks and opportunities.
information. Alignment with Global Standards: While the
Double Materiality: Companies must assess not ESRS is a European initiative, it seeks
only how sustainability issues affect their to align with other global ESG reporting
business but also how their operations frameworks, such as the Global Report-
impact society and the environment. ing Initiative (GRI) and the Sustainability
Assurance Requirements: Sustainability reports Accounting Standards Board (SASB). This
will be subject to limited assurance, harmonisation is crucial as companies
ensuring the accuracy and reliability of often operate in multiple regions and face
the information provided. various reporting requirements.

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