European Sustainability Reporting Standards: From Theory to Practice

The Corporate Sustainability Reporting Directive (CSRD) and the European Sustainability Reporting Standards (ESRS) establish a new framework for corporate sustainability reporting. The ESRS outline the requirements for what and how companies must disclose material impacts, risks and opportunities related to sustainability aspects in the areas of Environment, Social and Governance (ESG), following the principle of double materiality. In Germany alone, around 15,000 companies are subject to this reporting obligation. Implementing these standards presents significant challenges due to the extensive amount of information required to be reported and the complexity of the subject matter. Additionally, reporting under the new standards is an uncharted legislative territory for companies, auditors and supervisory authorities. In addition, the broad scope for interpretation of the ESRS currently hinders truly standardised reporting. This position paper aims to contribute to the discussion on practical implementation from the perspective of practitioners. It seeks to share the experiences of participating companies, provide insights into challenges encountered, and highlight ways to address them. The practical recommendations listed reflect the realities faced by the participating companies and can assist other companies with their implementation, regardless of whether they are in the midst of implementing the ESRS or just beginning.

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https://www.linkedin.com/posts/a-rady-halim-55866853_european-sustainability-reporting-standards-activity-7283822005831766016-H3eH/?utm_source=share&utm_medium=member_desktop