ESG & Sustainability - An Introduction for Business

 

 

 

 

 

 

 

 

 

 

European Sustainability 
Reporting Standard

What is ESRS?

With the Corporate Sustainability Reporting Directive (CSRD) and the interlinked European Sustainability Reporting Standard (ESRS) comes major changes that create a new paradigm for sustainability reporting. Reporting according to the ESRS is mandatory to all companies covered by the CSRD and must be incorporated in the management report. The reporting standard will also require companies to pay even more attention to traceability and transparency throughout the reporting process due to the limited assurance requirement.

The ESRS has a broader view of materiality than for example GRI, and is based on double materiality from an impact and financial perspective. The double materiality assessment will help companies to understand their impact, risks and opportunities spanning across their upstream and downstream value chains, arising from business relationships, geographical locations and more.

Who is affected by ESRS?

All companies covered by the CSRD (around 50 000 companies) will sooner or later be required to align their sustainability reports according to the ESRS. The CSRD covers all listed companies on regulated markets within the EU, including Small and Medium-sized Enterprises except micro companies. It also applies to all large (listed or not) companies if they meet at least two of the following three criteria: 

  • Balance sheet total of more than EUR 20m
  • Net turnover of more than EUR 40m
  • The average number of employees during the financial year of more than 250

And last but not least, non-EU undertakings with turnover above 150 million in the EU if they have at least one subsidiary or branch in the EU exceeding the above thresholds.

Our solutions and services for ESRS 

To prepare your organisation for the new sustainability reporting standard there are a number of measures you can take to make the adaptation as smooth as possible. The ESRS experts at Position Green can support you with: 

Training and engaging your organisation

  • Instructor led company specific training for top management, board of directors and sustainability specialists. 
  • Instructor-led training through Position Green’s Academy. We provide a full day training in Oslo, Copenhagen and Stockholm that will provide you with everything you need to know about reporting in line with the upcoming ESRS requirements.

ESRS gap analysis for your company

  • A gap analysis will give you a good understanding on how well your current reporting aligns with the coming ESRS requirements and what is needed to close those gaps.   

Materiality analysis based on double materiality

  • The double materiality assessment is the foundation and starting point to report according to the ESRS and it will define what your organisation should report on going forward. 

Digital solution for reporting according to the ESRS

  • Position Green’s Platform provides a digital solution to efficiently collect, analyse and report all sustainability data in line with the ESRS requirements. 
  • Our platform solution simplifies the process for external assurance providers to efficiently provide statutory limited assurance for the ESRS report. 

Accelerate your transition to sustainability

  • Increased transparency and more accurate data provides the information needed for data-driven strategic decision making. Our experienced advisors provide the necessary hands-on expertise to reduce risk and accelerate new value creation.

Timeline for the ESRS implementation

There will be a gradual implementation of the ESRS, depending on the size of the company:

  • June 2023: EU Commission to adopt ESRS as delegated acts
  • 1 January 2024: Undertakings already subject to the Non-Financial Reporting Directive (reporting in 2025 on 2024 data)
  • 1 January 2025: Large undertakings not currently subject to the Non-Financial Reporting Directive (reporting in 2026 on 2025 data)
  • 1 January 2026: Listed small and medium-sized enterprises, (reporting in 2027 on 2026 data). 
  • 1 January 2028: Non-EU companies covered by CSRD, (reporting in 2029 on 2028 data)

Want to know how we can help you get started with the European Sustainability Reporting Standard (ESRS)?

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