# ESRS Standards — Detailed Reference ## Cross-Cutting Standards (Mandatory for All In-Scope Companies) --- ### ESRS 1 — General Requirements **Purpose:** Sets the foundations for CSRD reporting — principles, structure, and the double materiality concept. **Key Requirements:** **Reporting Principles (paras. 1–18)** - Relevance, faithful representation, comparability, verifiability, understandability - Materiality-based reporting — only report what is material after DMA - Connected information — sustainability information must connect to financial statements **Double Materiality (paras. 19–44)** - Two perspectives: impact materiality + financial materiality - Both lenses must be applied; a topic is material if it meets EITHER criterion - DMA must cover own operations AND value chain **Value Chain (paras. 62–68)** - Must consider upstream (suppliers) and downstream (customers, end-users) value chain - Depth of value chain assessment scales with material impacts/risks - Where direct data unavailable, use proxy data / sector averages (disclose methodology) **Time Horizons (para. 72)** - Short-term: up to 1 year - Medium-term: 1–5 years - Long-term: beyond 5 years **Comparative Information (para. 86)** - Prior-year comparative data required for all quantitative disclosures **Transition Relief (paras. 118–134)** - Phase-in for Scope 3, ESRS S1 pay gap, some biodiversity datapoints - Listed SMEs may use simplified ESRS (voluntary standard pending) --- ### ESRS 2 — General Disclosures **Purpose:** Mandatory disclosures on governance, strategy, and risk management applicable to all in-scope companies regardless of DMA outcome. **Status:** Fully mandatory — cannot be omitted even if all topical standards are found non-material. #### GOV — Governance **GOV-1: Role of the administrative, management and supervisory bodies** - Composition and diversity of governance bodies related to sustainability - Sustainability expertise of governance members - How governance bodies oversee sustainability strategy and IROs - Integration of sustainability in board agendas and reporting lines **GOV-2: Information provided to and sustainability matters addressed by the undertaking's administrative, management and supervisory bodies** - Frequency and nature of sustainability information provided to governing bodies - How governing bodies consider sustainability risks and opportunities in decision-making **GOV-3: Integration of sustainability-related performance in incentive schemes** - Whether and how ESG performance is integrated in executive/management remuneration - Proportion of remuneration linked to sustainability targets **GOV-4: Statement on due diligence** - Whether the company has a due diligence process aligned with international standards (UN Guiding Principles, OECD Guidelines) - How human rights and environmental due diligence is embedded in operations **GOV-5: Risk management and internal controls over sustainability reporting** - Internal control framework for sustainability reporting - How risks of material misstatement in sustainability data are managed #### SBM — Strategy and Business Model **SBM-1: Strategy, business model, and value chain** - Business model overview and key value drivers - How sustainability matters are integrated into strategy - Full value chain description (upstream, operations, downstream) - Significant products, services, markets, and geographies **SBM-2: Interests and views of stakeholders** - Stakeholder engagement process and which stakeholders were consulted - How stakeholder views influenced strategy and reporting - Linkage between stakeholder input and material IROs identified **SBM-3: Material impacts, risks and opportunities and their interaction with strategy and business model** - Output of the DMA: list of material topics - How material IROs interact with the business model and strategy - Financial effects: current financial effects and anticipated financial effects of material IROs - Resilience of strategy under different scenarios #### IRO — Impacts, Risks and Opportunities **IRO-1: Description of the processes to identify and assess material impacts, risks and opportunities** - DMA methodology: scope, process, tools, assessment criteria - How impact significance is assessed (scale, scope, irremediability, likelihood) - How financial risks/opportunities are identified and assessed - Stakeholders consulted and how their input was used - Any sector-specific guidance applied --- ## Environmental Standards ### ESRS E1 — Climate Change **Applicability:** Apply if material after DMA. Climate is presumed material for most large companies — requires compelling justification to omit. **Mandatory Datapoints Regardless of Materiality:** - E1-1: Transition plan for climate change mitigation (Art. 19a(2)(a) — legally required even if topic found non-material) - Energy consumption from fossil fuels (ESRS E1-5, para. 40) **Key Disclosures:** **E1-1: Transition plan for climate change mitigation** - Decarbonisation targets: 2030, 2040, 2050 aligned with 1.5°C - Planned actions and enablers - Financial resources allocated (capex, opex, R&D) - Role of carbon offsets (must distinguish from own-emission reductions) - Locked-in GHG assets and stranded asset risk - EU Taxonomy alignment targets **E1-2: Policies related to climate change mitigation and adaptation** - Scope of policies (own operations / value chain) - Climate risk management policies - Net-zero ambition and pathway description **E1-3: Actions and resources in relation to climate change policies** - Decarbonisation action plan with timelines - Resources committed (financial, human, technical) - Actions relating to key GHG sources in own operations and value chain **E1-4: Targets related to climate change mitigation and adaptation** - GHG reduction targets (scope 1, 2, 3 separately) - Alignment with Paris Agreement (1.5°C pathway) - Energy efficiency and renewable energy targets - Physical and transition risk mitigation targets **E1-5: Energy consumption and mix** - Total energy consumption (MWh) - Breakdown: fossil fuels / renewables / nuclear - Energy intensity (per net revenue or other denominator) - Renewable energy share **E1-6: Gross Scopes 1, 2, 3 and Total GHG emissions** - Scope 1: direct GHG emissions (tCO2e) - Scope 2: location-based AND market-based (tCO2e) - Scope 3: all 15 GHG Protocol categories (tCO2e) - Total GHG emissions (Scope 1 + 2 + 3) - GHG intensity (tCO2e per € net revenue) - Methodology: GHG Protocol, emission factors, exclusions **E1-7: GHG removals and climate project finance** - GHG removals from own operations - Carbon credits purchased (volume, type, standard) - Distinction between removals and credits in net-zero claims **E1-8: Internal carbon pricing** - Whether internal carbon price is used in decision-making - Price per tCO2e and application scope **E1-9: Anticipated financial effects from material physical and transition risks and potential climate-related opportunities** - Financial effects of physical risks (acute: flood, storm; chronic: temperature rise, sea-level) - Financial effects of transition risks (policy, technology, market, reputational) - Climate opportunities and anticipated financial benefits - Climate scenario analysis (at minimum 1.5°C and >2°C scenarios recommended) --- ### ESRS E2 — Pollution **Applicability:** Apply if material — manufacturing, chemicals, mining, agriculture sectors most likely. **Key Disclosures:** - **E2-1:** Policies related to pollution - **E2-2:** Actions and resources to prevent/control pollution - **E2-3:** Targets related to pollution - **E2-4:** Pollution of air, water, soil — by pollutant type and medium - Substances of Very High Concern (SVHC) under REACH Regulation - Persistent Organic Pollutants (POPs) - NOx, SOx, PM2.5 emissions - Wastewater discharges by type and receiving body - **E2-5:** Substances of concern — use, release, incidents - **E2-6:** Anticipated financial effects from pollution-related risks and opportunities --- ### ESRS E3 — Water and Marine Resources **Applicability:** Apply if material — agriculture, food & beverage, mining, textiles, electronics most likely. **Key Disclosures:** - **E3-1:** Policies related to water and marine resources - **E3-2:** Actions and resources to manage water and marine resources - **E3-3:** Targets for water and marine resources - **E3-4:** Water consumption and withdrawal - Total water withdrawal (megalitres) by source (surface, groundwater, third-party) - Total water consumption (megalitres) - Water intensity - Withdrawal in water-stressed areas (WRI Aqueduct or equivalent) - **E3-5:** Anticipated financial effects from water and marine resource risks --- ### ESRS E4 — Biodiversity and Ecosystems **Applicability:** Apply if material — sites in or adjacent to biodiversity-sensitive areas, land use change, supply chains impacting biodiversity. **Key Disclosures:** - **E4-1:** Transition plan and consideration of biodiversity and ecosystems in strategy and business model - **E4-2:** Policies related to biodiversity and ecosystems - **E4-3:** Actions and resources related to biodiversity and ecosystems - **E4-4:** Targets related to biodiversity and ecosystems - **E4-5:** Impact metrics related to biodiversity and ecosystems change — land use, ecosystem fragmentation, invasive species - **E4-6:** Anticipated financial effects from biodiversity and ecosystem-related risks **Key metric:** Sites owned, leased, or managed in or near protected areas / key biodiversity areas. --- ### ESRS E5 — Resource Use and Circular Economy **Applicability:** Apply if material — manufacturing, retail, packaging, construction, electronics most likely. **Key Disclosures:** - **E5-1:** Policies related to resource use and circular economy - **E5-2:** Actions and resources related to resource use and circular economy - **E5-3:** Targets related to resource use and circular economy - **E5-4:** Resource inflows — material consumption, virgin materials, renewable vs. non-renewable - **E5-5:** Resource outflows — waste by type (hazardous/non-hazardous) and disposal method (recycling, landfill, incineration); by-products and secondary raw materials - **E5-6:** Anticipated financial effects from resource use and circular economy transition risks/opportunities --- ## Social Standards ### ESRS S1 — Own Workforce **Applicability:** Apply if material — workforce impacts are typically material for most large companies. **Phase-in:** Gender pay gap and some workforce metrics have phase-in provisions for first-year reporters. **Key Disclosures:** **S1-1:** Policies related to own workforce (working conditions, equal treatment, health & safety) **S1-2:** Processes for engaging with own workers and workers' representatives **S1-3:** Processes to remediate negative impacts and channels for own workers to raise concerns **S1-4:** Taking action on material impacts on own workers, and approaches to managing material risks and pursuing material opportunities related to own workforce, and effectiveness of those actions **S1-5:** Targets related to managing material negative impacts, advancing positive impacts, and managing material risks and opportunities **S1-6:** Characteristics of the undertaking's employees - Total number of employees - Breakdown: by gender, by country (for companies ≥1,000 employees in a country — if applicable), by employment type (permanent/temporary), by employment regime (full-time/part-time) - Number of non-employee workers (contractors, agency staff) **S1-7:** Characteristics of non-employees in the undertaking's own workforce **S1-8:** Collective bargaining coverage and social dialogue - % of own employees covered by collective bargaining agreements - Countries where collective bargaining coverage applies **S1-9:** Diversity metrics - % female employees (total workforce + management levels) - % employees by age group (<30, 30-50, >50) **S1-10:** Adequate wages — alignment with living wage benchmarks **S1-11:** Social protection coverage **S1-12:** Persons with disabilities in the workforce **S1-13:** Training and skills development - Average training hours per employee per year - % employees receiving regular performance reviews - Transition assistance programs **S1-14:** Health and safety - % employees covered by health & safety management system (ISO 45001 or equivalent) - Number of work-related fatalities (employees and non-employees) - Lost Time Injury Frequency Rate (LTIFR) — per 1 million hours worked - Number of recordable work-related accidents - Work-related ill health cases **S1-15:** Work-life balance — parental leave uptake rates by gender **S1-16:** Compensation metrics - CEO pay ratio (CEO total remuneration / median employee total remuneration) - Gender pay gap (median remuneration women vs. men, %) --- ### ESRS S2 — Workers in the Value Chain **Applicability:** Apply if material — companies with complex supply chains in high-risk sectors (garments, electronics, agriculture) most likely material. **Key Disclosures:** - **S2-1:** Policies related to workers in the value chain - **S2-2:** Processes for engaging with workers in the value chain about impacts - **S2-3:** Processes to remediate negative impacts on value chain workers - **S2-4:** Actions taken, and approaches to managing risks related to value chain workers - **S2-5:** Targets related to managing material impacts on workers in the value chain **Key metrics:** Number of value chain workers potentially affected by adverse impacts; coverage of due diligence by supply chain tier. --- ### ESRS S3 — Affected Communities **Applicability:** Apply if material — extractives, infrastructure, large land users, operations in indigenous territories. **Key Disclosures:** - **S3-1:** Policies related to affected communities - **S3-2:** Processes for engaging with affected communities about impacts - **S3-3:** Processes to remediate negative impacts on affected communities - **S3-4:** Actions and approaches to managing community-related risks - **S3-5:** Targets related to managing impacts on affected communities **Topics covered:** Access to land/water/food, community health, indigenous peoples' rights (FPIC), economic displacement, cultural heritage. --- ### ESRS S4 — Consumers and End-Users **Applicability:** Apply if material — B2C companies, healthcare, financial services, digital platforms, food/beverage most likely. **Key Disclosures:** - **S4-1:** Policies related to consumers and end-users - **S4-2:** Processes for engaging with consumers and end-users about impacts - **S4-3:** Processes to remediate negative impacts on consumers and end-users - **S4-4:** Actions and approaches to managing consumer-related risks and opportunities - **S4-5:** Targets related to managing material impacts on consumers and end-users **Topics covered:** Product safety, data protection, accessibility, responsible marketing, non-discrimination, right to privacy, financial inclusion. --- ## Governance Standards ### ESRS G1 — Business Conduct **Applicability:** Apply if material — typically material for most large companies given breadth of topics. **Key Disclosures:** **G1-1:** Corporate culture and business conduct policies - Code of conduct / code of ethics - Anti-corruption and anti-bribery policies - Lobbying and political engagement policies - Payment practices policies (prompt payment) **G1-2:** Management of relationships with suppliers - Responsible procurement policies - Fair dealing with suppliers (payment terms, supplier codes) - Tier-1 supplier coverage of due diligence **G1-3:** Prevention and detection of corruption and bribery - Risk assessment methodology - Training coverage for anti-corruption - Incidents of corruption confirmed during the reporting period **G1-4:** Incidents of corruption or bribery - Number of convictions for corruption - Total monetary value of fines for corruption - Actions taken in response to confirmed incidents **G1-5:** Political influence and lobbying activities - Total financial or in-kind contributions to political parties - List of significant lobbying activities and positions taken **G1-6:** Payment practices - Average payment period (days) to suppliers - % of payments made beyond contractual terms - Complaints from suppliers about payment practices --- ## Interoperability Notes ### GRI Alignment (ESRS 1, Appendix C) EFRAG published an interoperability mapping between ESRS and GRI Standards. Key mappings: - ESRS E1 ↔ GRI 305 (Emissions), GRI 302 (Energy) - ESRS S1 ↔ GRI 401 (Employment), GRI 403 (OHS), GRI 405 (Diversity) - ESRS G1 ↔ GRI 205 (Anti-corruption), GRI 206 (Anti-competitive behaviour) Companies with GRI reports should conduct gap analysis against ESRS rather than starting fresh. ### TCFD Alignment ESRS E1 incorporates TCFD framework recommendations: - Governance → ESRS 2 GOV disclosures - Strategy → ESRS 2 SBM disclosures + E1-9 financial effects - Risk management → ESRS 2 IRO-1 - Metrics & targets → ESRS E1-4, E1-6 TCFD reporters have a strong foundation but must add: Scope 3 (all 15 categories), transition plan (E1-1), and EU Taxonomy alignment. ### SASB Alignment EFRAG published ESRS-SASB interoperability guidance. Sector-specific SASB metrics may provide useful proxies for ESRS datapoints in the same domain. ### CDP Alignment CDP questionnaire responses (Climate, Water, Forests) provide significant data that maps to ESRS E1, E3, E4. CDP reporters can reuse much of their data collection infrastructure.