Questions & Answers
I wish to know the structure of the sustainability statement that needs to be published in the management report. While you have provided a structure in ESRS 1 Appendix F, it seems to not be detailed. Are we meant to follow the exact format as given under each ESRS? Is there a template that can be provided to effectively disclose information?
- Structure of ESRS the sustainability statement
Background
ESRS 1 paragraph 111 states: ‘Sustainability information shall be presented:
(a) in a way that allows for a distinction between information required by disclosures in ESRS and other information included in the management report; and
(b) under a structure that facilitates access to and understanding of the sustainability statement in a format that is both human-readable and machine-readable.’
ESRS 1 paragraph 115 states: ‘The undertaking shall structure its sustainability statement in four parts in the following order: general information, environmental information (including disclosures pursuant to Article 8 of Regulation (EU) 2020/852), social information and governance information. Respecting the provision in section 3.6 Material impacts or risks arising from actions to address sustainability matters of this Standard, when information provided in one part contains information to be reported in another part, the undertaking may refer in one part to information presented in another part, avoiding duplications. The undertaking may apply the detailed structure illustrated in Appendix F of this Standard.’
Answer
No, there is no requirement in ESRS to follow the exact format as given under each ESRS.
The only ESRS requirement is the following: ‘The undertaking shall structure its sustainability statement in four parts in the following order: general information, environmental information (including disclosures pursuant to Article 8 of Regulation (EU) 2020/852), social information and governance information.’ In addition, the undertaking may consider incorporation by reference subject to the requirements in ESRS 1 chapter 9.1 Incorporation by reference.
ESRS 1 Appendix F provides an example on how to structure the sustainability statement aligned with the general requirements under chapter 8 of ESRS 1 without further limiting the flexibility of the preparers when presenting the related disclosures.
To note:
The structure of the sustainability statement shall meet the qualitative characteristics of information (see ESRS 1 Appendix B).
The digital ESRS XBRL Taxonomy may help to prepare the sustainability statement in a structured way. Starting to prepare the mapping of the information to be reported with the digital ESRS XBRL Taxonomy will facilitate the subsequent tagging of the ESG information required by the machine-readable format. Therefore, EFRAG encourages to take inspiration from the digital ESRS XBRL Taxonomy to structure the sustainability disclosures. IG 3 List of ESRS Data Points offers a useful tool to perform this exercise.
Currently, there is no detailed template for the sustainability statement. EFRAG might consider providing a template in the future.
Relations
Paragraph | Content |
|---|---|
Appendix F - Example of structure of ESRS sustainability statement | |
8. Structure of the sustainability statement | |
Appendix F - Example of structure of ESRS sustainability statement | |
8. Structure of the sustainability statement | |
Appendix F - Example of structure of ESRS sustainability statement | |
8. Structure of the sustainability statement |