The European Sustainability Reporting Standards (ESRS) form a vital component of the Corporate Sustainability Reporting Directive (CSRD) in the European Union (EU). Mandated by the European Parliament and the Council, the CSRD requires companies to adhere to ESRS, promoting a double materiality perspective. Adopted as delegated acts by the European Commission, the ESRS establish clear criteria for economic activities to qualify as “sustainable.” Commencing on July 31, 2023, the first set of 12 ESRS necessitates companies to disclose governance and strategy related to material sustainability topics, impacts, risks, opportunities, and quantitative metrics. Encompassing environmental, social, and governance issues, the ESRS and CSRD usher in a new era of corporate transparency, covering aspects such as climate change, biodiversity, human rights, anti-corruption, and diversity on company boards. The reporting requirements will be gradually implemented for various companies over time.

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