Home 5 ESG 5 Revised Proposal Issued for ESRS

Revised Proposal Issued for ESRS

by Sam Baldwin

20 June 2023

The European Commission revealed a new draft delegated act and updated European Sustainability Reporting Standards (ESRS) on 9th June 2023.

The European Commission revealed a new draft delegated act and updated European Sustainability Reporting Standards (ESRS) on 9th June 2023. These restructured ESRS incorporate substantial transitional relief and a variety of adjustments from the original draft ESRS.

Developed by the European Financial Reporting Advisory Group (EFRAG) in November 2022, the ESRS are a set of standards designed to outline the concepts and principles that companies reporting within the EU must undertake to improve corporate sustainability and environmental social governance.


The key changes made by the EU from the original ESRS presented in November 2022 include:

  • Materiality: All standards, disclosure obligations, and data points are now subject to materiality evaluation, except for the disclosure requirements under the ‘General disclosures’ ESRS 2 category.
  • Phase-In of Certain Requirements: Companies or groups with fewer than 750 employees are permitted to exclude some elements in the initial years, such as Scope 3 greenhouse gas emissions and certain social disclosures.
  • Voluntary Disclosures: Several disclosures that were initially proposed as mandatory are now optional. These include biodiversity transition plans and indicators about ‘non-employees’ in the workforce.
  • Flexible Disclosures: Greater flexibility is permitted in certain disclosure requirements, such as the methodology used for materiality assessment and data points concerning corruption, bribery, and whistle-blowers.
  • Legal Coherence: Technical amendments have been made to better align with other provisions in the Accounting Directive and other relevant legislation, such as the Pay Transparency Directive.
  • Interoperability: Ongoing engagement with global standard-setting initiatives, such as the International Sustainability Standards Board and the Global Reporting Initiative, is aimed at increasing ESRS compatibility.
  • Editorial and Presentational Changes: Adjustments have been made to enhance the clarity, usability, and coherence of the standards.

The modifications remain as draft and the European Commission is encouraging feedback on the new requirements until 7th July 2023.

The updated delegated act and ESRS are available for public access on the European Commission’s website here.


For further advice on ESG business issues, please feel free to get in touch with me to discuss your own business requirements.

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