European Sustainability Reporting Standards (ESRS)

  • Glossary
  • European Sustainability Reporting Standards (ESRS)

The European Sustainability Reporting Standards (ESRS) are a set of rules for standardized, transparent reporting on sustainability aspects. They apply to EU companies that are subject to the Corporate Sustainability Reporting Directive (CSRD).

ESRS timeline: Developments and application

The ESRS drafts were presented by the European Financial Reporting Advisory Group (EFRAG) in November 2022 and adopted by the European Commission in July 2023. The standards took effect for the first group of companies on January 1, 2024.

ESRS requirements for sustainable supply chain management

The ESRS encompass more than 1,000 ESG (environmental, social and governance) data points across a range of topics and along the entire value chain. However, not all data points are required to be disclosed by all companies. A thorough materiality assessment sheds light on the most critical issues on which companies must report. The standards also include KPIs in the area of supply chain sustainability.

ESRS-related supply chain challenges

The ESRS apply to all industries. Gathering and analyzing the required data and integrating it into internal processes and systems can be a significant challenge, particularly when it comes to supply chains. Close collaboration and engagement with suppliers is needed to obtain the data and ensure a high level of consistency. Specialized, third-party service providers can help to collect and analyze the information with minimal effort.

Is your company already ESRS-compliant?

Find out how IntegrityNext can help you fulfill the ESRS reporting obligations for your supply chain.