ESG: Regulations Summary

The European Sustainability Reporting Standards (ESRS) were approved by the Commission today for use by all businesses governed by the Corporate Sustainability Reporting Directive (CSRD). This is a step in the right direction toward a sustainable EU economy.

The complete spectrum of environmental, social, and governance issues are covered by the standards, including those relating to climate change, biodiversity, and human rights. Investors can use the information they provide to better understand the sustainability impact of the businesses they invest in. In order to achieve a very high level of interoperability between EU and global standards and to prevent enterprises from reporting information twice, they also take into account negotiations with the International Sustainability Standards Board (ISSB) and the Global Reporting Initiative (GRI).

For various companies, the reporting requirements will gradually be implemented.