Proof-of-Concept European Sustainability Taxonomy Available

In case you missed it, the European Financial Reporting Advisory Group (EFRAG) has released a proof-of-concept XBRL Taxonomy in support of the European Sustainability Reporting Standards (ESRSs). It provides the digital definitions needed for selected climate-related disclosure requirements, and has been developed by the EFRAG ESRS Project Task Force as to inform ongoing work on the final taxonomy. For all those interested in the future of digital corporate reporting in Europe, we recommend downloading and exploring the taxonomy package.

About the draft ESRS

In April 2021, the European Commission adopted a legislative proposal for a Corporate Sustainability Reporting Directive (CSRD) that requires companies within its scope to report using a double materiality perspective in compliance with European Sustainability Reporting Standards (ESRS) adopted by the European Commission as delegated acts. Under the proposed CSRD, EFRAG was appointed technical adviser to the European Commission developing draft ESRS. This was confirmed by the text of 21 June resulting from the trilogue between the co-legislators and the text of 10 November 2022 approved by the European Parliament.

The ESRS Exposure Drafts (EDs) prepared by the EFRAG Project Task Force on European Sustainability Reporting Standards (EFRAG PTF-ESRS) during the period from June 2021 till April 2022 were exposed for comments from 30 April to 8 August 2022. The EFRAG Sustainability Reporting Board (EFRAG SRB), advised by the EFRAG Sustainability Reporting Technical Expert Group (EFRAG SR TEG), addressed the feedback of the consultation and amended accordingly the twelve draft ESRS that are released today to European Commission.

The European Commission will now consult EU bodies and Member States on the draft standards, before adopting the final standards as delegated acts in June 2023, followed by a scrutiny period by the European Parliament and Council.