ESRS Basics: Key Points About European Sustainability Reporting

Understand the ESRS requirements under CSRD. Learn the key points about the European Sustainability Reporting Standards and how they impact sustainability reporting.

Author

Date

July 18, 2023

April 6, 2025

Reading time

min

What do we mean by ESRS – European Sustainability Reporting Standards?

‍
ESRS (European Sustainability Reporting Standards) are a crucial part of CSRD compliance, helping companies translate sustainability reporting requirements into actionable steps. In this article, we summarise the main features of ESRS for those just beginning their sustainability reporting journey.

Structure of Standards Required by the CSRD (Corporate Sustainability Reporting Directive)

The Corporate Sustainability Reporting Directive (CSRD) requires large companies in the EU to collect and report sustainability information in alignment with ESRS, developed by EFRAG (European Financial Reporting Advisory Group).

The ESRS framework currently includes:

2 overarching standards
10 thematic standards (in proposal form)

These are divided as follows:

5 environmental standards (e.g., climate, pollution, water and marine resources)
4 social standards (e.g., own workforce, workers in the value chain)
1 governance standard (e.g., business conduct)

ESRS 1, ESRS 2, and ESRS E1 Standards

All companies subject to CSRD must comply with:

ESRS 1: General principles of sustainability reporting, including double materiality.
ESRS 2: Strategy, governance, and materiality assessment.
ESRS E1: Climate change-related disclosures and metrics.

Additionally, companies with more than 250 employees are expected to implement:

ESRS S1: Own workforce-related standard, covering diversity, inclusion, and working conditions.

Why Do ESRS Matter?

Understanding and applying the European Sustainability Reporting Standards is essential for organizations preparing for CSRD compliance. These standards help ensure:

Consistency in ESG data reporting
Transparency for investors and stakeholders
Alignment with EU-wide sustainability goals

Final Thoughts

By 2024–2026, ESRS will play a pivotal role in the way companies report on sustainability, risk, and impact. If you’re looking to get started, it’s important to familiarize yourself with the structure and application of each ESRS standard now.

Learn more about the ESRS standards 👉 Visit Blog on CSRD Software

‍

Heading 1

Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur.