Introduction of the European Sustainability Reporting Standards (ESRS)
On July 31, 2023, the European Sustainability Reporting Standards (ESRS) were approved and will now become mandatory for companies covered by the Accounting Directive and required to provide sustainability information. This applies to public companies whose shares are listed on stock exchanges.
The Accounting Directive, as amended by the Corporate Sustainability Reporting Directive (CSRD), adopted in 2022, was designed to provide comparable and reliable sustainability information from companies in the European Union. ESRS is introduced based on these two directives.
The core idea of the ESRS is the principle of “double materiality”, which means that companies are required to report not only on their impact on people and the environment, but also on how social and environmental issues can affect financial sustainability and prospects. companies.
The ESRS covers 12 core areas to help companies more accurately and comprehensively assess and document their sustainable practices and sustainability risks. This decision opens a new stage in strengthening the sustainability and responsibility of business in the European Union.