Recently, the European Financial Reporting Advisory Group (EFRAG) unveiled an ESRS register document. This preliminary version serves as an essential instrument, with a comprehensive overview of 1,178 environmental, social and governance (ESG) data points that are of crucial importance for companies complying with the CSRD.
The ESRS document simplifies the regulations in a structured way, including the data types in which the requirements must be provided (monetary, percentage, volume, qualitative), specification of whether a data point is voluntary or mandatory, and cross-references to various EU legislation such as the SFDR, PILLAR 3, Benchmark and CLP (Classification, Labelling and Packaging).
This creates much more clarity about how data points must be reported under the 12 ESRS categories (including the topics climate, emissions, and workers in the value chain). These data points range from descriptive to semi-descriptive, with absolute values, percentages, monetary units, energy units and correspondences for greenhouse gases (GHG) and SFDR becoming more clearly structured for companies to report.
As part of the CSRD preparation process, companies are encouraged to carry out a thorough materiality assessment for both impact and financial considerations. This includes aligning with CSRD standards and conducting a gap analysis to ensure that available data matches the required information.
The double materiality assessment emerges as a crucial step in this process, facilitating the filtering and linking of data points. However, the Excel document is not recommended as a starting point when investigating materiality topics. The number of data points to be retained and disclosed depends on the material aspects identified during the materiality assessment. This strategic approach ensures that reporting is not only comprehensive but also aligned with the specific nuances of each organisation's impact and financial landscape.
While the ESRS data points list continues through the finalisation phase, ongoing discussions within the Sustainability Reporting Technical Expert Group (SR TEG) highlight the continuous evolution of guidance documents, including those relating to materiality assessments. This underscores the importance of staying up to date with updates and remaining flexible in approach as the regulations develop.
Link to the most recent version of the CSRD implementation guidance excel sheet: https://efrag.sharefile.com/share/view/s1a12c193b86d406e90b1bcd7b6bb8f6f/fo37c90b-9d9b-4432-a76b-27760cfcc01b?skipNativeCheck=true
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