EFRAG Expands ESRS Guidance with 157 Detailed Explanations
EFRAG has released an updated version of its Compilation of Technical Explanations, incorporating 64 new explanations. This update brings the total to 157 and includes a significant mapping of sustainability matters referenced in paragraph AR 16 of ESRS 1 to Disclosure Requirements in topical standards. Additionally, Appendix III provides a log of 133 resolved queries addressed through Implementation Guidance or previous explanations.
This resource reinforces EFRAG’s mission to support stakeholders in effectively implementing the European Sustainability Reporting Standards (ESRS).
Highlights of the Update
- Comprehensive Organisation:
The explanations are categorised by thematic chapters — Cross-cutting, Environment, Social, or Governance — and linked directly to their respective Disclosure Requirements, following the ESRS structure; - New Mapping of AR 16:
Explanation ID 177 introduces an essential mapping tool that connects sustainability matters in AR 16 of ESRS 1 with the corresponding Disclosure Requirements in other standards; - User-Friendly Enhancements:
To aid accessibility, the Compilation integrates hyperlinks to individual ESRS texts and their Corrigenda, enabling faster navigation for users.
Stakeholder Guidance and Future Plans
As a technical advisor to the European Commission, EFRAG continues to ensure that stakeholders receive practical, non-authoritative guidance. The Compilation acts as a bridge to understanding ESRS requirements without creating new obligations, as it is not issued as a Delegated Act.
Appendix III consolidates 133 questions deemed ‘already answered’ via prior Implementation Guidance or explanations, showcasing the platform’s efficiency in addressing stakeholder concerns.
EFRAG plans to release a limited number of additional explanations in December 2024. Further updates are anticipated in 2025, following the conclusion of the 2024 sustainability reporting cycle.
Background on EFRAG’s Q&A Platform
Launched in late 2023, the ESRS Q&A Platform facilitates responses to technical questions about the ESRS. By November 2024, it had processed 777 questions, rejecting 182 and addressing 49% of the remaining 595 through Implementation Guidance or Explanations.
EFRAG provides two types of responses:
- Implementation Guidance: Informed by public feedback and finalised upon review.
- Explanations: Direct clarifications pointing stakeholders to the relevant content within the ESRS.
Both response types are final upon release, providing timely, authoritative support to preparers and stakeholders.
Conclusion
EFRAG’s updated Compilation of Explanations highlights its dedication to enhancing the usability of the ESRS. By addressing stakeholder questions efficiently and making guidance more accessible, EFRAG ensures that organisations are well-equipped to align with the evolving demands of sustainability reporting.
Explore the Compilation of Explanations to uncover detailed insights:
Q&A Platform: Compilation of Explanations, January-November 2024
