Understanding CSRD and the ESRS Standards
CSRD and the ESRS Standards mark a new era of corporate sustainability in the European Union. The CSRD and its ESRS standards affect EU and large third-country European companies. CSRD will impact 50,000 companies operating in Europe as it gradually expands the reporting scope of the accounting directive beyond the current scope set by the non-financial reporting directive (NFRD).
What are CSRD and ESRS Standards?
The Corporate Sustainability Reporting Directive (CSRD) and the European Single Reporting Standard (ESRS) are regulatory frameworks that enhance transparency and accountability in corporate sustainability reporting. These standards provide companies with a framework for disclosing sustainability information. The development of CSRD ESRS standards reflects the increasing focus on sustainable business practices. The standards are largely based on existing frameworks such as the GRI and encompass various aspects of sustainability, including environmental impact and social responsibility.
The three (3) categories in ESRS standards cover all ESG aspects
The ESRS define a set of specific disclosure requirements across ESG matters, organised into three categories:
- Cross-cutting standards establish general requirements applicable to all subjects covered by the Corporate Sustainability Reporting Directive (CSRD).
- Topical standards, which dive into the specifics of ESG matters.
- Sector-specific standards, which address sector-specific sustainability areas and reporting requirements. These are currently under development and are aimed to be finalised and adopted by the European Commission by June 2026.
Why are the CSRD ESRS Standards Important?
The CSRD and ESRS standards are significant as they ensure businesses are held accountable for their impact on society and the environment. By implementing these standards, companies demonstrate their commitment to sustainable practices, enhancing their reputation. Adopting CSRD ESRS standards enables companies to improve efficiency and risk management. However, kickstarting the reporting will require significant resources.
A digital approach to CSRD reporting is a must!
CSRD reporting has been created to be in electronic format from the beginning. Therefore, the CSRD sustainability statement cannot be done manually. In addition to topical reporting requirements, companies under CSRD must deliver their report with electronically tagged information and deliver their CSRD report to the European Single Access Point (from 2028 onwards).
It is impossible to create a CSRD report that complies with the requirements without using software specifically designed for CSRD reporting. Ecobio Manager handles the electronic tagging for you and helps deliver it to the ESAP.
Streamline CSRD reporting with Ecobio Manager
Ecobio Manager provides all-in-one software for sustainability reporting, including double materiality assessment, taxonomy classification, data collection, sustainability statement preparation, assurance, and delivery stages all the way to publication. Ecobio Manager fulfills CSRD and ESRS requirements. Developed by experts.
