European sustainability reporting standards – first set

The EC has launched a consultation on a draft Delegated Regulation adopting a first set of ESRS.
The ESRS are based on the technical advice by EFRAG and specify the content and, where relevant, the structure to be used to present the sustainability-related information large companies and listed small and medium-sized companies, as well as parent companies of large groups have to include in their management report pursuant to Directive 2013/34/EU.
The information is necessary to understand the company’s impacts on sustainability matters, and how sustainability matters affect the company’s development, performance, and position.
The document published for consultation purposes discusses the process of developing the ESRS, the modifications made to them, and the Union legislation that must be taken into consideration. The standards should cover short-, medium-, and long-term time horizons and include various disclosures such as business model and strategy, targets, policies, due diligence processes, adverse impacts, risk assessment, and relevant indicators.