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  • Studio Paci

Relevant news on ESG reporting standards


Last July, the European Commission adopted the delegated act on the ESRS (European Sustainability Reporting Standards), laying the foundations for new standards of ESG reporting.

Once ratified by the EU, they will become the reference for non-financial ESG balance sheets, replacing previous standards such as UN, GRI, ISSB.


With the CSRD Directive, a broad range of organizations will have to report on sustainability, social and environmental risks, and the impact of their activities. The Commission, through the ESRS, aims to standardize reporting across the EU, making information on sustainability comparable and reliable.


The need for such standards arises from the lack of sufficient and relevant information provided by companies, which prevents investors from having a clear view of sustainability-related risks. With the ESRS, the Commission intends to facilitate sustainability performance management and access to sustainable financing.


The standards are based on the draft standards of EFRAG, the European Financial Reporting Advisory Group, submitted to the Commission in 2022. EFRAG will provide technical guidance to facilitate the implementation of ESRS, promoting sustainability reporting globally.


The delegated act will now proceed for evaluation to the European Parliament and the Council. In the autumn, it will be clear whether the new standards will be approved.


The changes introduced aim at proportionality of the rules through: gradual introduction of obligations, greater flexibility for companies in deciding which information to report, and the transformation of some reporting obligations into requirements volunteers, to reduce the burden on companies, while promoting the transparency and quality of the information provided.

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