Commission Delegated Regulation (EU) 2023/2772 supplementing Directive 2013/34/EU of the European Parliament and of the Council as regards sustainability reporting standards.
Country
Type of law
Regulation
Abstract
This Regulation sets out the sustainability reporting standards to be used by undertakings for carrying out their sustainability reporting in its Annexes I and II, in accordance with Articles 19a and 29a of Directive 2013/34/EU following the timetable set out in Article 5(2) of Directive (EU) 2022/2464. The objective of European Sustainability Reporting Standards (ESRS) is to specify the information that an undertaking shall disclose about its material impacts, risks and opportunities in relation to environmental, social, and governance sustainability matters.
There are three categories of ESRS: (i) cross-cutting standards; (ii) topical standards (Environmental, Social and Governance standards); and (iii) sector-specific standards. The cross-cutting standards ESRS 1 General requirements and ESRS 2 General disclosures apply to the sustainability matters covered by topical standards and sector-specific standards. ESRS 1 describes the architecture of ESRS standards, explains drafting conventions and fundamental concepts, and sets out general requirements for preparing and presenting sustainability-related information. ESRS 2 establishes disclosure requirements on the information that the undertaking shall provide at a general level across all material sustainability matters on the reporting areas governance, strategy, impact, risk and opportunity management, and metrics and targets.
Sustainability matters covered in topical ESRS are: (I) climate change adaptation and mitigation; energy; (II) pollution of air, water, soil, living organisms and food resources; substances of concern; substances of very high concern, microplastics; (III) water and marine resources; (IV) direct impact drivers of biodiversity loss, impacts on the state of species and the extent and condition of ecosystems; (V) resource use and circular economy; and (VI) working conditions, including but not limited to adequate wages, secure employment, health and safety.
There are three categories of ESRS: (i) cross-cutting standards; (ii) topical standards (Environmental, Social and Governance standards); and (iii) sector-specific standards. The cross-cutting standards ESRS 1 General requirements and ESRS 2 General disclosures apply to the sustainability matters covered by topical standards and sector-specific standards. ESRS 1 describes the architecture of ESRS standards, explains drafting conventions and fundamental concepts, and sets out general requirements for preparing and presenting sustainability-related information. ESRS 2 establishes disclosure requirements on the information that the undertaking shall provide at a general level across all material sustainability matters on the reporting areas governance, strategy, impact, risk and opportunity management, and metrics and targets.
Sustainability matters covered in topical ESRS are: (I) climate change adaptation and mitigation; energy; (II) pollution of air, water, soil, living organisms and food resources; substances of concern; substances of very high concern, microplastics; (III) water and marine resources; (IV) direct impact drivers of biodiversity loss, impacts on the state of species and the extent and condition of ecosystems; (V) resource use and circular economy; and (VI) working conditions, including but not limited to adequate wages, secure employment, health and safety.
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Date of text
Entry into force notes
This Regulation shall enter into force on the third day following that of its publication in the Official Journal of the European Union. It shall apply from 1 January 2024 for financial years beginning on or after that date.
Repealed
No
Serial Imprint
Official Journal of the European Union L series, 22 December 2023.
Source language
English
Legislation Amendment
No