In November last year, Efrag, the advisory group to the EU Commission on corporate reporting, proposed a first set of European Sustainability Reporting Standards (ESRS). The draft includes requirements such as reporting of life-cycle emissions, decarbonisation targets and actions to protect biodiversity.
These sustainability disclosures are meant to be the cornerstone of EU corporate reporting. If adopted as such, they would enable citizens and investors to access critical information on impacts companies have on people and the environment. The Commission is now reviewing the draft before adopting it through delegated acts.
Civil society groups have called on it to keep up the ambition and not to reduce the scope of the standards,which would undermine the credibility of the whole framework.