Europe – A resolution calling to limit the requirements of the European Sustainability Reporting Standards (ESRS) was voted down in the European Parliament plenary in Strasbourg.
This paves not only the way for their formal adoption by the end of the year but also for real impact, ESG strategy, governance, and risk management.
A total of 44 Members of the European Parliament have proposed a resolution to oppose the ESRS, expressing worries about the "significant administrative and financial challenges" it could pose for companies, particularly smaller ones. These MEPs contended that the ESRS lacks effective KPIs and called for substantial cuts and modifications to the established standards.
The motion has been rejected with 359 votes against and 261 in favor. The ESRS will now be formally adopted before the end of the year and shortly after published in the official Journal of the European Union. Large companies will start assessing their operations through the ESRS criteria starting January 2024 and disclosing their information accordingly by 2025.