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  • Laurence Ponchaut

🌍 CSRD : ESRS and DR Explained

At Distinct Communication, our goal is to provide clarity and actionable insights on emerging regulatory frameworks shaping corporate sustainability. Today, we're focusing on the European Sustainability Reporting Standards (ESRS) and the Disclosure Requirements (DR) integral to the Corporate Sustainability Reporting Directive (CSRD).

What are the ESRS?

The ESRS are a set of standards developed to provide a consistent framework for the sustainability information that companies are required to report under the CSRD. These standards detail specific topics and indicators that companies must disclose, depending on their sector and the impacts of their activities. The ESRS help operationalize the CSRD by providing clear guidelines on what needs to be reported.


What are Disclosure Requirements (DR)?

Disclosure Requirements (DR) within the ESRS are specific pieces of information that companies must report on. These requirements are designed to ensure that companies provide a comprehensive account of their environmental, social, and governance impacts. The number of DRs varies across different standards, reflecting the complexity and breadth of information required in each area.


ESRS Breakdown by Focus Area

Here's an overview of the ESRS categories, highlighting the focus areas and the associated number of Disclosure Requirements (DR)

Mandatory and Sector-Specific ESRS

According to the latest EU Commission update as of July 31, 2023, "General Disclosures" are mandatory for all entities under the CSRD. These include general principles and strategies encompassing the organization's approach to sustainability. For other ESRS, companies must undertake a double materiality assessment to determine which topics are relevant to their operations and stakeholders, thereby deciding which standards apply to them. This process helps tailor the reporting to reflect the company's true impact and governance practices.

🚀 Why This Matters


The structured approach of the ESRS, with its specific Disclosure Requirements, ensures that companies not only comply with regulations but also align their reporting with global best practices in sustainability. This aids in building trust with stakeholders, including investors, regulators, and the public, by providing a transparent, detailed view of the company's sustainability efforts.


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