EU adopts new standards for corporate sustainability reporting

03 Aug '23

1 min read

Pic: Shutterstock/metamorworks

Insights

The European Commission has adopted the European Sustainability Reporting Standards (ESRS) to be used by companies under the CSRD.
These standards, covering environmental, social, and governance issues, aim to enable investors to understand the sustainability impact of companies.
They also align with the ISSB and GRI to prevent double reporting.

The European Commission has adopted the European Sustainability Reporting Standards (ESRS) for use by all companies subject to the Corporate Sustainability Reporting Directive (CSRD). This marks another step forward in the transition to a sustainable European Union (EU) economy.

The standards cover the full range of environmental, social, and governance issues, including climate change, biodiversity, and human rights. They provide information for investors to understand the sustainability impact of the companies in which they invest, the European Commission said in a press release.

Moreover, the new standards take account of discussions with the International Sustainability Standards Board (ISSB) and the Global Reporting Initiative (GRI) in order to ensure a very high degree of interoperability between EU and global standards and to prevent unnecessary double reporting by companies.

“The standards we have adopted today are ambitious and are an important tool underpinning the EU’s sustainable finance agenda. They strike the right balance between limiting the burden on reporting companies while at the same time enabling companies to show the efforts they are making to meet the green deal agenda, and accordingly have access to sustainable finance,” said Mairead McGuinness, commissioner for financial services, financial stability, and capital markets union.

Fibre2Fashion News Desk (NB)

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