Last updated: 08 Aug 2023 11:00 Posted in:
The European Commission has adopted the European Sustainability Reporting Standards (ESRS) for all companies subject to the Corporate Sustainability Reporting Directive (CSRD).
The standards cover the full range of environmental, social, and governance issues, including climate change, biodiversity and human rights. They provide information for investors to understand the sustainability impact of the companies in which they invest. They also take account of discussions with the International Sustainability Standards Board (ISSB) and the Global Reporting Initiative (GRI) in order to ensure a very high degree of interoperability between EU and global standards and to prevent unnecessary double reporting by companies.
Mairead McGuinness, Commissioner for Financial Services, Financial Stability and Capital Markets Union, said: “The standards we have adopted are ambitious and are an important tool underpinning the EU’s sustainable finance agenda.
“They strike the right balance between limiting the burden on reporting companies while at the same time enabling companies to show the efforts they are making to meet the green deal agenda, and accordingly have access to sustainable finance.”
The reporting requirements will be phased in over time for different companies.
AIA’s Chief Executive, Philip Turnbull, added “The adoption of the European Sustainability Reporting Standards (ESRS) by the European Commission marks a significant step towards enhancing transparency and accountability in the realm of corporate sustainability. This shift is not only in line with the increasing demand for transparent reporting but also reinforces the accountant's role as a strategic advisor in helping companies navigate the intricacies of sustainable finance.”
“The adoption of the European Sustainability Reporting Standards (ESRS) by the European Commission marks a significant step towards enhancing transparency and accountability in the realm of corporate sustainability. This shift is not only in line with the increasing demand for transparent reporting but also reinforces the accountant's role as a strategic advisor in helping companies navigate the intricacies of sustainable finance."
Philip Turnbull, AIA Chief Executive