Finalisation of Three EFRAG ESRS Implementation Guidance Documents

EFRAG IG 123

On 31 May 2024, EFRAG announced the finalisation of its first three ESRS Implementation Guidance documents, reflecting the outcome of public feedback. These documents, EFRAG IG 1 to 3, aim to address the most challenging aspects of ESRS implementation.

The finalised documents include:

  1. EFRAG IG 1: Materiality Assessment – This guidance focuses on identifying which sustainability issues are material to a company’s financial performance and should be disclosed in the ESRS reports.
  2. EFRAG IG 2: Value Chain – This document provides guidance on how to assess and report the impacts of a company’s entire value chain, not just its direct operations, ensuring a comprehensive understanding of its sustainability footprint.
  3. EFRAG IG 3: Detailed ESRS Datapoints and Accompanying Explanatory Note – This guidance offers detailed instructions on the specific data points required by the ESRS and includes an explanatory note to aid in accurate and consistent reporting.

The public feedback period for these documents ran from 22 December 2023 to 2 February 2024. Feedback statements prepared by the EFRAG Secretariat illustrate how public input was incorporated into the final guidance documents.

By prioritising these documents, EFRAG aims to assist businesses and stakeholders in implementing the ESRS, ensuring they can focus on the most relevant aspects of the standards. The guidance is designed to clarify reporting requirements using practical language and answers to frequently asked questions, making the process more accessible and effective.

These documents offer crucial guidance to ensure organisations effectively implement and comply with the European Sustainability Reporting Standards (ESRS), thereby promoting transparency and consistency in sustainability reporting.

In conjunction with the Implementation Guidance documents (IGs), the EFRAG Secretariat has also released feedback statements. These statements, prepared by EFRAG, demonstrate how public feedback has been incorporated into the finalised IGs, ensuring that the guidance aligns with the insights and concerns of various stakeholders.