The ESRS E1 standard defines a company’s disclosure requirements in relation to its impact on climate change, efforts to limit global warming to 1.5 degrees in accordance with the Paris Agreement and adaptation strategies to actual and expected climatic changes.

It also contains disclosure requirements on how companies deal with their greenhouse gas emissions (Scope 1-3 emissions) and the associated risks, as well as the obligation to provide information on the company’s energy consumption and energy mix.

This section covers the company’s actual and potential impacts on air, water and soil pollution. It highlights the company’s actions and strategies to prevent and mitigate such pollution and adapt to a sustainable economy. The standard also considers the financial implications of these environmental impacts. It also includes information on substances of concern that the company produces or uses and their potential impact on people and the environment.

The main objective of this standard is to enable users to recognize the actual and potential impacts of the company on water and marine resources. In addition, companies should present their measures to mitigate negative impacts and protect these resources.

The standard also requires a description of how a company adapts its business strategies in line with sustainable water use. Finally, companies should provide information on material risks, opportunities and impacts arising from their relationship with water and marine resources. For “water”, the standard refers to surface water and groundwater and for “marine resources” to their use, return and associated activities.

The ESRS E4 standard aims to require companies to clearly state in their sustainability reports how they affect biodiversity and ecosystems. Both positive and negative impacts, including the company’s role in the loss of biodiversity, should be taken into account. The company should also present its measures to mitigate these impacts and restore biodiversity.

The business strategy is expected to be in line with various global and EU biodiversity directives. Companies should also report on their material risks and opportunities and their financial implications in relation to biodiversity. The standard considers the company’s relationship with different habitats and ecosystems. In this context, “biodiversity” refers to the variability of organisms and their ecosystems.

ESRS E5 is about the company’s impact on resource efficiency, the use of renewable resources and the prevention of depletion of non-renewable resources. Companies should report their actions and their results to mitigate negative impacts in this area, including measures to decouple economic growth from the use of materials.

The standard emphasizes the need to adapt business strategies to minimize waste and maximize resource efficiency. The “circular economy” describes a system that maximizes the value of products and materials by promoting their use optimization, reuse and recycling. It is designed to help companies master the transformation from a linear to a circular economy.

This standard stipulates that the company must report on the positive and negative influences of the company on its own workforce, measures taken and their results, as well as financial risks and opportunities.

The focus is on the social aspects of (i) working conditions, (ii) equal treatment and opportunities for all, and (iii) other labor-related rights such as child and forced labor. Companies should explain how they address these factors and what material IROs result from them.

The ESRS S1 standard only refers to the company’s workforce, including non-employees, but not to external workers in the value chain.

The standard defines disclosure requirements for companies to make the impact of their business activities on workers in their value chain transparent. Companies should explain their approach to assessing and addressing impacts on working conditions, equal treatment & opportunities and other labor-related rights. The standard applies to all workers in the value chain who are not part of the “own workforce”.

This area sets out how companies impact affected communities through their business activities. Businesses must set out their approach to addressing impacts on (i) economic, social and cultural rights of communities, (ii) civil and political rights of communities, and (iii) specific rights of indigenous peoples, as well as the opportunities and risks of dependence on these communities.

Affected communities are individuals or groups who live or work in the same area that is or could be affected by the company’s activities or its value chain.

The ESRS S4 standard sets disclosure requirements to help readers of the report understand an organization’s impact on consumers and/or end users in the context of its business, products and services. Companies should explain their approach to issues such as (i) information-related impacts on consumers and/or end-users (e.g. privacy, freedom of expression), (ii) personal safety (e.g. health and safety, personal security and child protection), and (iii) social inclusion of consumers (e.g. non-discrimination, access to products and services and responsible marketing practices). Misuse of the products by consumers is not part of this standard.

The main objective of the ESRS G1 standard is to provide clear guidelines for companies so that the strategies, processes and performance in the area of corporate policy can be understood in the sustainability report. In particular, the following three main areas of corporate governance are considered:
(i) Corporate ethics and culture, e.g. the fight against corruption, the protection of whistleblowers;
(ii) The management of supplier relationships, especially with regard to payment practices;
(iii) The way in which companies exercise political influence and the resulting obligations, including lobbying.