#ESRS update – relief for companies, but only at first sight!
After reviewing the #EFRAG proposals dated November 2022 and the new version of the ESRS published by the European Commission, we conclude the following:
👉The new version of the #ESRS provides relief for companies at first sight.
With the exception of ESRS 2 – General Disclosures, all standards and disclosure requirements are now dependent on the topics determined as material by the company based on the #materiality analysis performed.
☝Although the focus may initially be on the simplifications, the reporting obligations should nevertheless not be underestimated.
🔷The ESRS 2 standard alone contains a large number of complex disclosure requirements.
🔷In particular, Appendix B (pp. 60) of the document attached: the “list of datapoints in cross-cutting and topical standards that are required by EU law” is an integral part of the ESRS 2.
🔷The list of data points is not trivial and challenging in terms of data collection and presentation.
🔷Even companies that already have experience in #sustainability reporting should allow sufficient time for this and seek specialized support for this process if needed.
The draft act is open for feedback until July 7. It is stated that feedback will be taken into account for finalising the initiative.