20 October 2023


The European Parliament in plenary session formally approved the delegated act (+ annex) setting out the first set of European Sustainability Reporting Standards (ESRS). Some members of the EPP group raised an objection to the act which was rejected by a majority of MEPs.

The delegated act was published by the Commission at the end of July and is comprised of twelve cross-cutting, sector-agnostic standards, introducing detailed reporting requirements on companies’ impact on the environment, human rights, social standards and governance factors, according to the Corporate Sustainability Reporting Directive (CSRD). The delegated act has then been transmitted to the Parliament and the Council for a four-month scrutiny period. If the Council does not raise any objection to the delegated act, the new standards will become effective for the first companies to adopt from 1 January 2024.

Companies now need to prepare the implementation of the reporting requirements. The EFRAG will periodically publish additional non-binding technical guidance on the application of ESRS, especially on materiality assessment and on reporting with regard to value chains which should be published shortly.