- The ESRS are EFRAG's technical standards detailing the content of the reporting required by the CSRD.
- 12 thematic standards across 3 pillars (E, S, G), built on double materiality.
- Each topic requires quantitative indicators and qualitative information, externally audited.
- On July 3, 2026, the European Commission adopted the revised ESRS. According to the Commission, mandatory datapoints drop by more than 60% and total datapoints by more than 70%. Published in the Official Journal on September 21, 2026, they enter into force on November 10, 2026 and apply to financial years starting on or after January 1, 2027.
The Corporate Sustainability Reporting Directive (the CSRD) divided into European standards for extra-financial reporting (the ESRS) requires certain companies to communicate transparently on their environmental, social and governance impacts.
ESRS standards, closely linked to the growing adoption of CSR approaches, represent not only an obligation, but also a strategic opportunity.
What are the ESRS standards? What is their role in CSRD? Which businesses are affected? Find out everything you need to know about the CSRD ESRS.
Understand the basics of ESRS standards and the CSRD directive
What is CSRD?
The CSRD (Corporate Sustainability Reporting Directive) is a European directive adopted in 2022. Its aim is toimprove transparency on corporate sustainability practices.
They must report their environmental, social and governance (ESG) impacts accurately and in detail. Thus, employees, consumers, investors and all stakeholders have the opportunity to compare the performance of companies according to these 3 extra-financial themes.
The CSRD replaces the NFRD (Non-Financial Reporting Directive) which mainly concerned large companies listed on the stock exchange. It asked them for information on their ESG performance and carried out very few sanctions in case of non-compliance.
The CSRD greatly extends the scope of application of the standard and is more demanding and precise in terms of the information to be reported (double materiality, ESRS standards, external verification, digitalization). Beyond improving transparency, which was the main objective of the NFRD, the CSRD aims to have a harmonized framework for extra-financial data for companies. The CSRD has also strengthened sanctions in the event of non-compliance. Sanctions are set by each Member State, and in France the transposition law (loi n° 2025-391 of 30 April 2025) removed the criminal sanctions initially envisaged.
What are ESRS?
The ESRS (European Sustainability Reporting Standards) are a set of European standards, guidelines, which make it possible to harmonize the extra-financial reporting of companies. They determine what information companies should publish regarding their ESG impacts. It's quite logical, to be able to compare them, it is essential to use the same criteria.
Relationship and difference between CSRD and ESRS
The CSRD is therefore the European directive that establishes the legal framework for the obligation to report ESG impacts and The ESRS are the standards used to carry out this reporting.
Structure and content of ESRS standards
The main themes covered by the ESRS
The themes covered by the ESRS revolve around three ESG pillars : environment, social and governance; in addition to two general standards.
The ESRS you will have to report on will depend on the themes that you have identified as material through your analysis of double materiality.
The environment
The theme is very broad, but the sub-topics are not necessarily material (i.e. relevant) for all businesses. The objective is to reduce impacts and better manage financial risks and opportunities related to environmental issues. A few examples:
- Work against climate change by reducing greenhouse gas emissions and developing decarbonization strategies;
- Limit the exploitation of resources by controlling water and energy consumption, for example in production chains;
- Reduce pollution by reorganizing to generate less waste, by recycling as much as possible and by reducing its air emissions;
- Preserve biodiversity by limiting its harmful effects on natural ecosystems.
The actions to be implemented depend on the material topics identified in the materiality matrix.
The social
The scope of application is quite broad, these standards cover forced labour, but also discrimination, gender equality, health and safety at work. In the idea, the company must respect these obligations within its walls, but must also ensure that it collaborates with partners that also respect them. This is where it gets complicated, in the context of extra-European trade, with countries that are less attentive to the respect of human rights.
Through the CSRD, companies are invited to control and rethink their entire supply chain, especially with regard to working conditions at their suppliers. Value chain workers and affected communities should also be considered, as well as direct employees.
The ESRS linked to the social sector also focus on quality of social relationships that the company maintains with each of its stakeholders: employees, customers, local communities, suppliers, distributors, etc.
Governance
Governance standards seek to validate that the overall strategy of the company is correct. aligned with the sustainable development goals.
It assesses the quality of management to ensure that everything is in place to avoid abuses, such as executive pay gaps or the fight against corruption.
Mandatory for which businesses?
Businesses concerned by the CSRD:
- Large companies and parent undertakings with more than 1,000 employees and over €450 million in net turnover (the two cumulative thresholds).
- Non-EU companies generating over €450 million in net turnover in the EU, through a subsidiary or branch whose net turnover exceeds €200 million (from the 2028 financial year).
- SMEs, including listed ones, are no longer in the mandatory scope since the Omnibus; companies with 1,000 employees or fewer can use the Voluntary Standard, VS (formerly VSME).
- Subsidiaries covered by a consolidated CSRD report at parent level can be exempt from their own report.
The application schedule is gradual according to the size of the company and companies below the thresholds (1,000 employees and €450M net turnover) are not concerned.
Regarding the ESRS standards, here are the ones that are mandatory for all companies:
| Mandatory standard | Why it applies |
|---|---|
| General standards that share context and expectations | The ESRS 1 and the ESRS 2. |
| ESRS E1 (Climate Change) | Because all companies have an impact or are impacted by climate issues. |
The other standards are applicable according to the results of the double materiality analysis of each company.
The thematic ESRS standards are divided into themes, sub-topics, and sub-sub-themes.
The specific requirements of the ESRS
In the majority of cases, ESRs require businesses to report:
- written policies;
- Objectives set;
- Action plans put in place to achieve their goals;
- Some key indicators;
for each challenge identified as material.
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How to prepare for ESRS and CSRD requirements?
The steps to comply with the CSRD
Compliance with CSRD can take a long time; this varies depending on the sustainability maturity of the company. It is therefore essential to commit to it quickly and to move forward step by step:
- Understand CSRD and ESRS;
- Define a dedicated team, a compliance manager;
- Discern material issues by involving all stakeholders in the reflection;
- Set up data collection and analysis tools;
- Define and monitor relevant KPIs to measure progress;
- Prepare the sustainability report;
- Have the report checked by an independent auditor;
- Review the company's strategy to collect more reliable data from year to year, and improve on ESG topics;
- Publish annual reports.
Disclosure Requirements (DR) and Data Points (DP)
The 12 ESRS standards are broken down into 82 “Disclosure Requirements”, the DRs, specifying what and how to report on each subject.
The 82 Disclosure Requirements represent no fewer than 1,150 data points, or DP, guiding companies on what to include in their reports.
The combination of these two elements ensures detailed, consistent sustainability reports that are aligned with the expectations of regulators and stakeholders.
For example, you need to produce a CSRD report. You are dealing with ESRS E3 (water and marine resources), the sub-topic “water,” and the sub-sub-topic “water consumption.”
Within the sub-sub-topic, you will find the DRs specifying the information you need to report (policy, actions, targets, objectives, metrics) and the DPs indicating the expected form of reporting (water consumption trend curve, water consumption per unit of production, amount of water saved through specific measures).
Each DR relates to a specific sustainability topic, in relation to a sub-theme and a sub-sub-theme. For example:
- ESRS E1-1 Transition to a low-carbon economy;
- ESRS S1-2 Fair working conditions for the workforce;
- ESRS G1-1 Governance structure responsible for sustainability issues.
The DP specifies what the company must collect and report to respond to the DR. They can be qualitative (describing a policy, strategy, or commitment) or quantitative (measuring scope 1 greenhouse gas emissions in tons of CO₂, sulfur dioxide, or fine particles, turnover rate, number of workplace accidents, etc.). It is not mandatory to respond to all ESRS, only the DR and DP for topics that are material to the company.
Available tools and resources
CSRD is a vast subject. To help them in their efforts, companies can seek assistance from specialized experts.
Numerous resources are also available on official websites to provide as much information as possible on the subject. For example:
- Educational guide issued by the AMF (Autorité des Marchés Financiers) for reporting on your climate transition plan in ESRS format;
- Practical guide to applying the CSRD by the ANC (Autorité des Normes Comptables);
- Senate report on the implementation of the CSRD;
- ESRS guide from the CSR portal of the Ministry of Economy and Finance and the digital services incubator.
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Outlook and new opportunities
The impact of ESRS on corporate CSR strategy
The implementation of CSRD-compliant ESRS reporting is fully in line with the CSR approach. It imposes new transparency and reporting requirements, forcing companies to rethink their overall strategy in favor of sustainability:
- Strengthen CSR governance;
- Consolidate ESG risk management;
- Innovate and develop new business models.
Through this transformation, companies improve their reputation, brand image, and attractiveness. Although adaptation requires investment, it reduces costs in the long term and optimizes financial and non-financial performance.
Harmonization with international standards
Compliance with ESRS also enables companies to comply with other international standards, as the CSRD is inspired by frameworks such as the GRI standards and the TCFD recommendations. This ensures a consistent and harmonized approach to sustainability reporting and facilitates alignment with global standards and the expectations of stakeholders worldwide.
What are the main international standards?
- GRI (Global Reporting Initiative), which also provides a framework for ESG reporting;
- TCFD (Task Force on Climate-related Financial Disclosures), which focuses specifically on climate-related information;
- ISSB (International Sustainability Standards Board), which covers sustainability standards, but with a focus on investor needs.
Outlook
Since the Omnibus, the CSRD applies to a narrower set of companies, and there is no plan to bring SMEs into scope. The ESRS and the CSRD still play a key role in the ecological and social transition. Companies outside the scope keep receiving ESG data requests from their CSRD clients, and those with 1,000 employees or fewer can answer them with the VS, which sets the maximum those clients can require from financial year 2027.
In conclusion
Beyond a constraint, the CSRD directive and ESRS standards represent a real opportunity for companies. Integrating ESG issues into their strategy allows them to differentiate themselves, develop their brand image and attract investors and talent.
Understanding ESRS is the first step to successful CSRD reporting.
ESRS and CSRD — Key Takeaways
| Key point | Explanation |
|---|---|
| ESRS | Technical standards (EFRAG) detailing the content of CSRD reporting |
| Structure | 12 topical standards across 3 pillars (E, S, G) + 2 general standards (ESRS 1 and 2) |
| Principle | Standards selected through double materiality |
| Revised ESRS | Adopted July 3, 2026: more than 60% fewer mandatory datapoints and more than 70% fewer datapoints in total. In force on November 10, 2026, applicable to financial years starting on or after January 1, 2027 |
| Sectoral | Sectoral ESRS standards dropped by the Omnibus |
