Term · ESG & Sustainability
ESRS
In briefThe ESRS (European Sustainability Reporting Standards) are the EU standards that set out which sustainability disclosures companies must publish under the CSRD. They are based on the principle of double materiality and cover environmental, social and governance topics.
Definition
The ESRS (European Sustainability Reporting Standards) are the EU-mandated standards for sustainability reporting under the CSRD. They set out which environmental, social and governance information reporting companies must disclose. At their core is the principle of double materiality, which takes both financial and impact-related aspects into account.
Why it matters for small caps
For smaller companies within scope, the ESRS mean considerable reporting effort. The scope and quality of the disclosures give indications of the company's data maturity and resources.
Common misreadings
- The ESRS are often confused with the CSRD: the CSRD is the directive, whereas the ESRS are the specific reporting standards under it.
In the process
Frequently asked
What is the difference between CSRD and ESRS?
The CSRD is the EU directive that establishes the reporting obligation. The ESRS are the specific standards that determine which content is reported and in what form.
What does double materiality mean?
Reporting covers both the company's impacts on the environment and society and how sustainability topics affect the company's financial position.
Do the ESRS also apply to small companies?
The scope is staggered and was recently the subject of adjustments. For smaller capital-market-oriented companies, separate, reduced standards are in part provided for.
Related terms
Sources
Primary
EUR-Lex – Delegierte Verordnung (EU) 2023/2772 (ESRS)
https://eur-lex.europa.eu/legal-content/DE/TXT/?uri=CELEX:32023R2772
https://eur-lex.europa.eu/legal-content/DE/TXT/?uri=CELEX:32023R2772
Education only, not investment advice. Ranges and thresholds are didactic orientation values, not an official standard.