Table of contents

  1. What are the ESRS?
  2. ESRS–CSRD relationship
  3. Core ESRS principles
  4. Structure of an ESRS-compliant report
  5. ESRS reporting process – step by step
  6. Value chain, compliance, and EUDR
  7. Risks of non-compliance

What are the ESRS?

ESRS (European Sustainability Reporting Standards) are a set of detailed reporting requirements and metrics that enable consistent disclosure of impacts, risks, and opportunities related to ESG. The standards cover, among others, greenhouse gas (GHG) emissions, resource use, human rights, working conditions, business ethics, and corporate governance. Obligations are phased in over time in line with CSRD thresholds.

ESRS–CSRD relationship

CSRD defines who must report and what must be reported, while the ESRS specify how to do it (scope of disclosures, metrics, format). ESRS were developed to standardize the reporting language and to enable independent assurance of sustainability information.

Core ESRS principles

  • Double materiality – disclosure of the company’s impacts on the environment and society, as well as the effects of ESG factors on the company’s performance.
  • Completeness and comparability – standardized indicators and methodology.
  • Verifiability – data must be documented and capable of independent confirmation.
  • Value chain perspective – consideration of impacts beyond direct operations.
  • Forward-looking orientation – targets, strategies, transition plans, and progress.
  • Integration with finance – consistency with financial reporting and business strategy.

Structure of an ESRS-compliant report

  • Introduction – scope, boundaries, methodology, reporting entity.
  • Materiality – results of the double materiality assessment and topic mapping.
  • Value chain and stakeholders – business model description and stakeholder engagement.
  • E/S/G disclosures – policies, actions, targets, KPIs and performance.
  • Risks and opportunities – identification, assessment, and management.
  • Data quality and control – systems, procedures, audit trails, and independent assurance.

ESRS reporting process – step by step

  1. Initial audit/readiness assessment – review of processes, gaps, and data collection systems (ESRS audit).
  2. Double materiality assessment – selection of topics and indicators to disclose.
  3. Stakeholder engagement – feeding the materiality process with market input.
  4. Environmental data – GHG Protocol (Scopes 1–3), LCA/EPD, resource consumption.
  5. Governance and control – policies, KPIs, systems and oversight (e.g., ISO 14001).
  6. Report drafting – alignment with ESRS requirements and integration with financials.
  7. Independent assurance – third-party assessment of compliance and data reliability.

Value chain, compliance, and EUDR

ESRS require coverage of the entire value chain. In many sectors this also implies compliance with deforestation and due-diligence policies.

Risks of non-compliance

  • Exposure to sanctions and audit qualifications.
  • Loss of contracts that require ESG data and CSRD/ESRS alignment.
  • Questionable credibility of information – reputational risk and greenwashing.
  • Fragmented, unverified data – higher costs and decision-making errors.