Europe —The European Financial Reporting Advisory Group (EFRAG) handed over the Exposure Drafts of European Sustainability Reporting Standards (ED ESRS) to the EU Commission. More than 750 comments received were evaluated and incorporated into the new drafts.
The most important updates at a glance: The structure is now divided into four instead of three reporting pillars. The ED ESRS G1 has been deleted, and its content has been partially incorporated into the Draft ESRS 2. The principle of the rebuttable presumption with regard to the determination of materiality has been removed; according to the new drafts, various reporting obligations are mandatory regardless of the assessment of their materiality. The number of disclosure obligations has been reduced to 84 disclosure requirements and 1144 quantitative and qualitative data points.
NEXT STEP: The EU Commission will adopt the ESRS as delegated act by the end of June 2023, making them directly binding for all companies affected by the CSRD.