Research: Are Businesses Embracing the ESRS and How Can Policymakers Avoid Creating Legal Uncertainty Around its Application

Following the EU Corporate Sustainability Reporting Directive (CSRD), large companies will start to report in accordance with the first set of sector-agnostic European Sustainability Reporting Standards (ESRS) in 2025.

This legal framework was adopted to enhance and modernise companies reporting on sustainability matters, with the objective of addressing a market failure in providing relevant, comparable and decision-useful sustainability information.

We assessed the presence and quality of key disclosures according to the requirements and expectations of the EU Sustainability Reporting Standards on: 

• Double materiality assessment (process and outcomes)
• Climate-related disclosures and Transition Plans (connection to commitments,completeness and quality of disclosures)
• Sustainability due diligence (connection with double materiality assessment, governance and stakeholder engagement)
• Biodiversity (consideration in double materiality assessment, specific impact and metrics)

We examined sustainability statements of 100 influential EU companies in top 5 high-impacts sectors prioritised for the development of EU sector standards: Textiles, Finance, Road Transportation, Energy, Food & Beverage.

Download the study “Preparation for implementation of the EU Sustainability Reporting Standards”

Download the executive summary translated to French | German | Spanish | Italian | Czech (coming soon) | Polish (coming soon)

For whom is this analysis?

The evidence and recommendations drawn from this research aims to support

• Companies in their understanding and implementation of the ESRS
• Auditors and supervisory authorities’ engagement with preparers
• Policy-makers in supporting a pragmatic and common sense application of the EU rules and standards 

Why download this analysis?

• Gain insights into current and emerging practices in companies’ sustainability disclosures according to the ESRS
• Explore our  practical recommendations to prevent  overcompliance or “box-ticking” approaches that distract companies from essential and material information
• Access our targeted  proposals to support implementation and consider simplification measures

Find out more during the launch webinar

On November 19, we will hold a webinar presenting the key findings and recommendations of the study. We will also put in context the main aspects gaining attention in the political sphere.

Look forward to hearing from:

• Tom Dodd, Directorate-General FISMA, European Commission
• Amanda Soler Guzmán, amfori
• Aleksandra Palinska, Eurosif
• Filip Gregor, Frank Bold