Companies subject to the CSRD will have to report according to European Sustainability Reporting Standards (ESRS). The standards were developed by the EFRAG, previously known as the European Financial Reporting Advisory Group, an independent body bringing together various different stakeholders.
The ESRS were published in the Official Journal on 22 December 2023 under the form of a delegated regulation. They are tailored to EU policies, while building on and contributing to international standardisation initiatives.
In QualiWare we have created a set of regualtion diagrams for the ESRSs, enabling you to use our out of the box compliance capability, including compliance matrixes where you relate relevant content to the paragraphs in the relevant ESRSs.
As shown in the figure above the ESRS contains:
- 2 cross cutting standards:
- ESRS 1 General requirements
- ESRS 2 General disclosures
- 10 topical standards (Environmental, Social and Governance standards):
- ESRS E1 Climate change
- ESRS E2 Pollution
- ESRS E3 Water and marine resources
- ESRS E4 Biodiversity and ecosystems
- ESRS E5 Resource use and circular economy
- ESRS S1 Own workforce
- ESRS S2 Workers in the value chain
- ESRS S3 Affected communities
- ESRS S4 Consumers and end-users
- ESRS G1 Business conduct
ESRS 1 describes the architecture of the ESRS standards, explains drafting conventions and fundamental concepts, and sets out general requirements for preparing and presenting sustainability-related information.
ESRS 2 sets out the disclosure requirements that apply to all undertakings regardless of their sector of activity (i.e., sector agnostic) and apply across sustainability topics (i.e., cross-cutting).
Each of the 10 topical standards details disclosure requirements within their “own domain”.
The ESRS have been detailed in dedicated regulation diagrams, as shown in the figure below, created in the Model Gallery.
Hence, each of the ESRS diagrams can be explored in detail, below is a view of the ESRS E2 regulation diagram
A regulation diagram can be shown in the configurable dashboard view introduced in QualiWare 10.8, se example below:
When modelled in QualiWare as a regulation diagram it is easy to explore the new standards, and to map relevant enterprise specific content to the relevant regulation paragraphs in each of the standard.
The compliance matrix shows the descriptions of each of the paragraphs in the ESRSs and their corresponding complying object, i.e. the object(s) that document the relevant content in order to comply with the paragraph in the regulation.
We have created the regulation diagrams based upon the structure in the ESRS regulation.
The description for each of the regulations has been derived from the ESRS datapoint in the Implementation Guide (IG) published by EFRAG, see details below. Hence, the paragraph text includes the detapoint, with reference to which disclosure requirements (DR) and related paragraph in the ESRS regulation.
Disclaimer:
The ESRS regulation diagrams in QualiWare are based upon the content available from the sources listed below. QualiWare assumes no responsibility or liability whatsoever for the content or any consequences or damages direct, indirect or incidental arising from using the content.
More information:
- CSRD Directive: Directive – 2022/2464 – EN – CSRD Directive – EUR-Lex (europa.eu)
- ESRS regulation: Delegated regulation – EU – 2023/2772 – EN – EUR-Lex (europa.eu)
- EFRAG ESRS draft IG documents: News – EFRAG: 22/12/2023 – PUBLICATION OF THE 3 DRAFT EFRAG ESRS IG DOCUMENTS (EFRAG IG 1 TO 3)