The European Commission has announced the official publication of the first European Sustainability Reporting Standards (ESRS) in the Official Journal of the European Union, marking a significant milestone on the road to a more sustainable economy.

This initiative follows a comprehensive review of Directive 2013/34/EU – CSRD, which led to the creation of specific sustainability reporting standards. These standards are gradually applicable to large, small and medium-sized companies with securities listed on regulated markets in the EU, as well as to parent companies of large groups. The main objective is to standardise and deepen sustainability disclosures, which must now be included in a specific section of the consolidated report.

The ESRS standards, a result of EFRAG’s technical contributions, guarantee proportionality and consistency with the legal framework of the European Union. These standards comply with the requirements set out in the Directive and should be adopted as common standards. The Regulation entered into force three days after its publication in the Official Journal of the European Union and applies from 1 January 2024 for financial years starting on that date, with the aim of reporting in 2025.

In addition, on 22 December 2023, the first sustainability standards were published in the Official Journal of the European Union under “Commission Delegated Regulation (EU) 2023/2772 of 31 July 2023”. This regulation complements the Directive of the European Parliament and the Council, specifically with regard to environmental, social and governance sustainability reporting standards. They include two cross-cutting standards with general principles, mandatory for all companies, and several standards subject to materiality, divided into five environmental standards, four social standards and one governance standard.

Key details of the Regulation:

  • 📝 Disposition date: 31/07/2023
  • 📰 Date of publication: 22/12/2023
  • ⏰ Date of entry into force: 25/12/2023
  • 🌐 Applicable from 1 January 2024.

How does this affect your organisation?

We invite you to find out more about these standards and how the Global Factor team can support your company in the transition to a more sustainable economy.

For more information you can contact: info@globalfactor.com

Source: Global Factor

Global Factor is an international group with 19 years of experience, specialised in offering global, original, and innovative solutions in the fields of climate change adaptation and mitigation, carbon footprint, sustainability, circular economy, renewable energies, climate neutrality and carbon markets. Global Factor has an interdisciplinary team with a presence in 8 countries and has participated in more than 2,000 projects for more than 700 public and private clients, international organisations and non-profit entities in 51 different countries.