Consulting | Regulatory

ESAs and ASCG weigh in on proposal of European Sustainability Reporting Standards

Written by Nicky Heber
Mar 22, 2023

The European Sustainability Reporting Standards (ESRS) comprise the initial set of twelve standards that define the sustainability reporting obligations for the management report under the Corporate Sustainability Reporting Directive (CSRD). Currently, the ESRS are undergoing the final approval process at European level.

Earlier this year, in January 2023, the European Supervisory Authorities (ESAs) and the Accounting Standards Committee of Germany (ASCG/ DRSC) provided their opinions on the ESRS drafts. They demonstrated general support for the standards while also highlighting room for improvement.

The reports outlines several conceptual enhancements, including:


  • Ensure coherence with CSRD and EU regulations
  • Clarify definitions, terminology, and materiality assessment process


  • Align with Task Force on Climate Related Disclosures (TCFD) and International Sustainability Standards (SSB)
  • Focus on quantitative disclosures for comparability and usability


  • Avoid fragmentation of reporting regulations
  • Ensure compatibility with IFRS for automatic compliance


  • Differentiate reporting requirements for large companiesInclude GHG protocol reporting and explicit requirements for company goals
  • include GHG protool reporting and explicit requirements for company goals

The complete statements can be found on  the websites of the ESAs and DRSC:

Different types of companies will have varying timelines to comply with the reporting requirements. The initial group of companies will need to implement the standards during the 2024 financial year, with reports being published in 2025. Starting in 2026, listed SMEs will be obligated to report, although they can choose to opt-out by 2028. Additionally, SMEs will have the option to report using distinct, proportional standards that EFRAG intends to develop in the coming year.

Contact our leading experts on ESG regulation for further information.


Nicky Heber

Nicky Heber

Director, Germany

Nicky Heber has over 10 years of consulting experience in the European Capital Markets sector, ranging from banks to clearing houses and asset managers. He is SME for implementing European regulatory requirements in the context of ESG.

Email us
Call us