Developing the ESRS: A Comprehensive Guide

Introduction to the ESRS

The European Sustainability Reporting Standards (ESRS) are a set of norms established by the European Union to ensure that companies disclose detailed and comparable information about their sustainability performance. These standards cover a wide range of aspects, from environmental impact to social practices and governance.

Objective: To promote transparency, comparability, and reliability of non-financial information, enabling investors, consumers, and other stakeholders to make more informed decisions.

Detailed Description of Each ESRS

ESRS 1: General Requirements

• Foundation: Establishes the basic principles and key definitions that apply to all ESRS.
• Content: Includes aspects such as the scope of information to be disclosed, materiality, double materiality, the value chain, time horizons, and assurance.

ESRS 2: General Disclosures

• Foundation: Provides the general requirements for the disclosure of information on policies, actions, objectives, and metrics related to environmental, social, and governance aspects.
• Content: Includes the description of sustainability policies and strategies, identified risks and opportunities, long-term objectives, and key performance indicators (KPIs).

Environment

ESRS E1: Climate

• Focus: Addresses greenhouse gas (GHG) emissions, climate resilience, and the transition to a low-carbon economy.
• Content: Includes the disclosure of a GHG inventory, emission reduction targets, climate risks, and mitigation and adaptation strategies.

ESRS E2: Pollution

• Focus: Centers on air, water, and soil pollution, as well as waste management.
• Content: Requires the disclosure of information on pollutant emissions and discharges, pollution prevention and control measures, and associated environmental impacts.

ESRS E3: Water and Marine Resources

• Focus: Addresses water use, water resource management, and impacts on marine ecosystems.
• Content: Includes the disclosure of information on water consumption, water use efficiency, water-related risks, and measures to protect water resources.

ESRS E4: Biodiversity and Ecosystems

• Focus: Centers on biodiversity conservation and ecosystem management.
• Content: Requires the disclosure of information on impacts on biodiversity, conservation and restoration measures, and risks associated with biodiversity loss.

ESRS E5: Resource Use and Circular Economy

• Focus: Addresses resource use efficiency, waste management, and the transition to a circular economy.
• Content: Includes the disclosure of information on material consumption, waste generation, eco-design strategies, and supply chain management.

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Social

ESRS S1: Own Workforce

• Focus: Centers on the working conditions of employees, diversity, and inclusion.
• Content: Includes the disclosure of information on remuneration, hours worked, health and safety at work, and employee training and development.

ESRS S2: Workers in the Value Chain

• Focus: Addresses working conditions throughout the value chain.
• Content: Requires the disclosure of information on suppliers’ labor practices, labor risks in the value chain, and measures to ensure fair working conditions.

ESRS S3: Affected Communities

• Focus: Centers on the social impacts on local communities.
• Content: Includes the disclosure of information on relationships with local communities, positive and negative social impacts, and measures to address community grievances.

ESRS S4: Consumers and End-Users

• Focus: Addresses consumer rights and customer satisfaction.
• Content: Requires the disclosure of information on commercial practices, product and service quality, consumer complaint management, and data privacy.

Governance

ESRS G1: Business Conduct

• Focus: Centers on business ethics, anti-corruption, and transparency.
• Content: Includes the disclosure of information on the code of conduct, anti-corruption policies, conflicts of interest, risk management, and transparency in decision-making.

Note: This is a general overview of the ESRS. Each standard contains more detailed and specific requirements. For more precise and updated information, consult the official European Union regulations.

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