SUSTAINABLE DEVELOPMENT DIRECTIVE AND EUROPEAN REPORTING STANDARDS

Piotr Biernacki

04/04/2022

Soon all large and some small and medium-sized enterprises will report sustainable development issues in accordance with the provisions of the CSRD directive. It will be accompanied by a uniform European reporting standards system. Below we publish a complete set of information so that everyone can follow the development of the standards. The website will be constantly updated – we encourage you to visit it.

Latest update: April 4, 2022

01

On April 21, 2021, the European Commission submitted draft CSRD (Corporate Sustainability Reporting Directive) directive. It is currently being analyzed during the legislative process, and its adoption by the European Parliament and the Council of the European Union is scheduled for the first half of 2022.

The draft CSRD directive: PL EN

02

According to the directive, all large enterprises (regardless of whether they are publicly traded or private companies) will prepare reports on sustainable development. The reports will be audited and will form an integral part of the annual report of each company. The obligations will also apply to small and medium enterprises listed on the regulated market.

03

This year, the title of the Climate Aware Company was awarded to: CCC S.A. (8.50 points), LUG S.A. (8.33 points), LPP S.A. (8.08 points), Powszechny Zakład Ubezpieczeń S.A. (7.66 points), Wielton S.A. (7.58 points), ASBISc Enterprises PLC (7.25 points) and BNP Paribas Bank Polska S.A. (7.08 points).Three of these companies (CCC, LUG and Wielton) are MATERIALITY clients, whom we helped both in calculating greenhouse gas emissions and preparing a report for 2020 and in other issues related to sustainable development.

04

Reports will be prepared in accordance with the European Sustainability Reporting Standards (ESRS). These standards will be issued by the European Commission in the form of delegated acts. The draft standards will be prepared for the EFRAG Commission (European Financial Reporting Council). The project is developed by a special working team appointed at EFRAG (PTF-ESRS, Project Task Force on European Sustainability Reporting Standards), of which Piotr Biernacki, ESG Reporting Partner at MATERIALITY is a member. Piotr acts as a co-lead of the sub-team that has developed draft cross-cutting standards and sets of guidelines.

05

The final delegated acts containing the standards will be issued by the European Commission in all languages of the EU Member States. Work on the draft standards is carried out in English, therefore in the following materials we keep the names of individual documents in the original.

The current state of work on the draft standards is presented below. Work on them is ongoing, and subsequent working documents are published by EFRAG. Drafts will be subject to public consultation and the final content of the entire set of standards is subject to change.

Before reading the draft standards, please read the EFRAG draft standard cover note

Architecture of the European sustainability reporting standards system

Draft standards

Cross-cutting standards

ESRS 1 General provisions: cover note [plik] working paper [plik]
ESRS 2 Strategy and business model [plik]
ESRS 3 Sustainability governance and organization [plik]
ESRS 4 Sustainability material impacts, risks and opportunities [plik]
ESRS 5 Definitions for policies, targets, action plans and resources [plik]

Topical standards: Environment
ESRS E1 Climate change [plik]
ESRS E2 Pollution [plik]
ESRS E3 Water and marine resources [plik]
ESRS E4 Biodiversity and ecosystems [plik]
ESRS E5 Circular economy [plik]

Topical standards: Social
ESRS S1 Own workforce – general [plik]
ESRS S2 Own workforce – working conditions [plik]
ESRS S3 Own workforce – equal opportunities [plik]
ESRS S4 Own workforce – other work-related rights [plik]
ESRS S5 Workers in the value chain [plik]
ESRS S6 Affected communities [plik]
ESRS S7 Consumers and end-users [plik]

Topical standards: Governance
ESRS G1 Governance, risk management and internal control [plik]
ESRS G2 Products and services management and quality of relationships with business partners WP [plik]
ESRS G3 Business conduct [plik]

Sector specific standards
ESRS SEC1 Sector classification standard [plik]

Presentation
ESRS P1 Sustainability statements [plik]

Conceptual guidelines
Note: the conceptual guidelines are not part of the standards and will not be issued by the European Commission in the form of delegated acts. They provide guidance to the standard-setting institution, but may also be of use to all other audiences for a non-binding interpretation of the standards.

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