Getting CSRD-ready
The European Financial Reporting Advisory Group (EFRAG) published the final guidelines on implementing the European Sustainability Reporting Standards (ESRS) at the end of May. Alongside the guidelines, EFRAG also released the definitive list of data points contained in the ESRS (EFRAG IG 3).
The first of the now-available guidelines (EFRAG IG 1) is dedicated to materiality assessment. It first explains the principle of double materiality and then describes in detail how the assessment is to be carried out. The second finalised document (EFRAG IG 2) addresses the value chain. It starts with a definition of the term and shows how companies can gather data on this topic.
Even though the EFRAG guidelines aren’t mandatory, they give companies valuable pointers on how to meet ESRS requirements. In addition, EFRAG has published a list of further clarifications on the standards, answering 68 relevant questions.
These final standards are a significant step toward greater transparency and accountability in sustainability reporting across Europe. Companies now have a clearer roadmap to report on their sustainability efforts — which ultimately contributes to more sustainable business practices and better-informed stakeholders.
