European Sustainability Reporting Standards (ESRS)


The European Sustainability Reporting Standards (ESRS) are a set of reporting guidelines and standards introduced under the Corporate Sustainability Reporting Directive (CSRD). These standards aim to enhance corporate transparency and accountability by requiring listed and large companies to disclose information related to environmental, social, and governance (ESG) issues.


Double Materiality Principle: ESRS align with the "double materiality" principle, which means that reporting entities are obligated to report on both financial materiality (how ESG issues affect financial risks and opportunities) and impact materiality (how ESG issues impact people and the environment). This approach acknowledges the interconnectedness of financial and non-financial aspects in corporate reporting.