European Sustainability Reporting Standards
The first set of 12 European Sustainability Reporting Standards (ESRS), developed by the European Financial Reporting Advisory Group (EFRAG), were adopted by the European Commission on July 31, 2023 and published in the Official Journal of the European Union on December 22, 2023.
The ESRS apply to financial years beginning on or after January 1, 2024.
Who's impacted?
Under the Corporate Sustainability Reporting Directive (CSRD), in-scope companies are required to prepare sustainability disclosures in accordance with ESRS.
To learn more which companies must apply the ESRS, visit the European Union Sustainability Reporting Regulation page.
What's the latest?
On December 3, 2025, EFRAG released draft simplified ESRS as part of the European Commission’s Omnibus initiative to simplify and reduce the reporting burden.
The simplified ESRS will not be legally binding until the European Commission prepares and adopts the Delegated Act. More details can be found here.
What do Canadian CPAs need to know?
Compared with the Canadian Sustainability Disclosure Standards (CSDS), the ESRS extend beyond climate and general sustainability disclosures and include specific standards for biodiversity & ecosystems, pollution, water and other environmental and social topics.
The ESRS are based on a double materiality approach, covering both financial materiality and impact materiality, whereas the CSDS focus on financial materiality.
Where can I learn more?
For more information, please refer to our At a Glance: Sustainability Reporting Standards and Regulations and related FAQs.
You can also refer to: