ESRS standards
A comprehensive overview of the new ESG requirements
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How can the complex requirements of the ESRS standards be implemented efficiently? This question currently concerns around 15,000 companies in Germany and 50,000 companies in Europe. The European Sustainability Reporting Standards (ESRS) are part of the Corporate Sustainability Reporting Directive (CSRD) , which came into force in January 2023, and form the basis for uniform sustainability reporting in the European Union. Find out here which requirements apply to your company and how you can meet them in a legally compliant manner.
The topic in a nutshell - essential ESRS requirements at a glance:
- Standardized ESG reporting: The ESRS standards define binding requirements for sustainability reporting in accordance with the CSRD Directive - from CO₂ accounting to corporate governance.
- Complexdata collection: Companies must collect and evaluate a selection of over 1,100 different data points in the areas of environment, social affairs and governance.
- Highauditing standard: The reporting must be audit-capable and withstand an external audit by auditors.
- With the certified ESG software from Planted you can reduce the time required for your ESRS reporting by up to 70%. Our team of ESG experts will also support you with legally compliant implementation.
What are the ESRS standards?
The ESRS standards (European Sustainability Reporting Standards) are guidelines developed by the European Financial Reporting Advisory Group (EFRAG) for uniform sustainability reporting in the EU. These standards were developed in a comprehensive democratic process involving various EU institutions, member states and stakeholder groups. After intensive review and consultation, the ESRS were submitted to the European Commission and adopted as a delegated regulation on July 31, 2023. They cover topics such as ESRS E1-5 for environmental aspects and ESRS S1-4 for social aspects. As an integral part of the Corporate Sustainability Reporting Directive (CSRD) the ESRS standards define the requirements that companies must fulfill for their sustainability reports must fulfill.
How do the ESRS standards affect companies?
The ESRS standards require companies to collect and disclose comprehensive ESG data. Although this increases the effort required for reporting, it promotes transparency and strengthens trust on the capital market and among other stakeholders. stakeholders. Companies will adapt their processes and possibly invest in new technologies in order to meet the requirements of European Sustainability Reporting. Compliance with the ESRS standards will give companies a competitive edge by making sustainable business practices visible.
Free guide: How to implement the ESRS standards
To whom do the ESRS standards apply?
Timeline of CSRD reporting
Overview of the ESRS standards German
The EFRAG standards in German are divided into the general standards ESRS 1 and ESRS 2 as well as the topic-specific standards:
In the area of environmental standards (ESRS E1-E5), the focus is primarily on climate protection. Companies must record their greenhouse gas emissions in accordance with the GHG Protocol and document measures to reduce emissions. The standards also require comprehensive management of environmental impacts. This ranges from the prevention of air and water pollution to sustainable water management and the protection of biodiversity. There is also a particular focus on promoting the circular economy and the efficient use of resources.
The social standards (ESRS S1-S4) place people at the heart of ESRS reporting. They require detailed information on the working conditions of a company's own workforce, including aspects such as diversity and training opportunities. In the social standards, companies' responsibility extends beyond their own employees to the entire supply chain. Relationships with local communities and dealings with customers must also be documented transparently.
The governance standard (ESRS G1) is about responsible corporate governance. Companies must demonstrate that they follow ethical business practices and have effective risk management and compliance systems in place. Transparency in management and the implementation of robust control mechanisms are of central importance here.
The topic-specific ESRS standards in detail: environment, social affairs and corporate governance
Environmental standards (ESRS E1-E5)
Social standards (ESRS S1-S4)
Governance standards (ESRS G1)
ESRS standards: The difference between ESRS 1 and ESRS 2
ESRS 1 sets out general requirements for sustainability reporting, including application rules, reporting structure and principles. It includes:
Companies can omit reporting standards if the topics covered are considered immaterial. The requirements of ESRS 2 "General Disclosures" are mandatory.
ESRS 2 defines cross-thematic reporting requirements, including governance structures, strategies and business models in relation to sustainability issues. It describes the process for identifying material sustainability-related impacts, risks and opportunities (IROs). ESRS 2 defines minimum reporting requirements:
and follows a structure recommended by the Task Force on Climate-related Financial Disclosures (TCFD) to ensure compatibility with international standards. This structure also applies to the topic-related ESRS standards.
Realize the ESRS standards with ease
Planted offers a unique combination of internal expert support, external audit by auditors and a software solution that supports all CSRD challenges.
Practical implementation of the ESRS standards
Successful implementation of the ESRS standards requires a structured approach that is divided into three central phases.
The first phase is the double materiality analysis. This is fundamental for your CSRD-compliant reporting using the ESRS, as it determines which sustainability aspects are relevant for your company and must therefore also be taken into account in your reporting. As part of the dual materiality analysis, you assess both the impact of your company on the environment and society (impact perspective) and the financial risks and opportunities arising from sustainability aspects for your company (financial perspective).
The second phase focuses on systematic data collection and data management. The aim here is to collect and document the data points identified as material across all areas of the company. It is particularly important to involve all relevant departments, from production to purchasing and HR. The Planted software supports you with cloud-based collaboration and API interfaces for cross-team data collection in real time.
The third phase involves checking and validating the collected data. As the CSRD prescribes an external audit of sustainability reporting, all data must be documented in an audit-compliant manner. The Planted methodology, developed in collaboration with auditors, ensures that your reporting meets the highest auditing standards. Automatic validation mechanisms check the data quality and support you in complying with all legal requirements.
ESRS data points and reporting requirements
The ESRS standards comprise over 1,100 different data points for sustainability reporting. Of these, around 265 data points are marked as voluntary . All other data points are generally mandatory, but can be included as part of the double materiality analysis as not reportable if the corresponding topics are identified as not material for the company. Data quality is a particular challenge here: all reported information must be comprehensible, verifiable and documented with corresponding evidence.
The Planted software largely automates the collection of these data points, thereby significantly reducing manual effort. AI-supported processes and an intuitive user interface allow you to collect the required data up to 70 % faster than with conventional methods. The integration of preset emission factors also makes it easier to legally compliant CO₂ balancing with TÜV certification.
Conclusion: Support for ESRS implementation by Planted
Implementing the ESRS standards presents companies with complex challenges. The Planted ESG management platform provides you with an end-to-end solution that covers all the requirements of CSRD-compliant reporting, combining three key advantages: Intuitive software that reduces the time required by up to 70%, technical expertise from our team of CSRD experts and a methodology validated by auditors. The TÜV-certified CO₂ accounting and AI-supported processes guarantee the highest quality standards. With more than 350 successful customer projects from over 12 industries , Planted has extensive experience in the implementation of ESG management systems. From materiality analysis and data collection to the finished CSRD report we support you every step of the way - in a practical, efficient and legally compliant manner.
Start implementing the ESRS standards now:
- Arrange a free demo of our software
- Let our CSRD team of experts advise you
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FAQ on the ESRS standards
What is ESRS?
ESRS (European Sustainability Reporting Standards) is a set of standards developed by the European Financial Reporting Advisory Group (EFRAG) to ensure uniform and transparent sustainability reporting in the EU. These ESRS standards are part of the European Sustainability Reporting Initiative and play a central role in the implementation of the Corporate Sustainability Reporting Directive (CSRD).
How are the ESRS standards subdivided?
The ESRS standards are divided into ESRS 1, ESRS 2 and the topic-specific standards. ESRS 1 defines general reporting requirements and principles, while ESRS 2 sets out specific cross-thematic reporting requirements. The ESRS standards are intended to help companies to record and disclose their ESG performance in detail in order to promote transparency and comparability.
Which ESRS standards are mandatory?
The ESRS standards, which are mandatory, primarily comprise ESRS 1 and ESRS 2. ESRS 1 defines general requirements and principles for sustainability reporting. ESRS 2 sets out specific cross-thematic reporting requirements, including governance structures and the identification of material sustainability-related impacts, risks and opportunities (IROs). In addition, depending on the relevant topics, companies must also comply with specific standards such as ESRS E1 for environmental aspects.
What is the difference between CSRD and ESRS?
The Corporate Sustainability Reporting Directive (CSRD) and the European Sustainability Reporting Standards (ESRS) are closely linked, but they have different roles. The CSRD is an EU directive that obliges companies to report comprehensively on their sustainability performance. It specifies which companies are obliged to report and what information must be disclosed. The ESRS standards, on the other hand, are the standards developed by the European Financial Reporting Advisory Group (EFRAG), which define the specific requirements and content of this reporting in detail. While the CSRD provides the legal framework, the ESRS standards (including ESRS 1 and ESRS 2) provide the specific guidelines that companies must follow in order to meet the requirements of the CSRD.
How many data points do the ESRS standards have?
The ESRS standards include specific data points that companies must collect and disclose to report their sustainability performance. These data points cover various areas, including environmental aspects (ESRS E1), social aspects and governance structures. Set 1 of the ESRS standards contains 1178 data points. 265 of these are voluntary.