The draft European Sustainability Reporting Standards (ESRS) outlines disclosure requirements applicable to all sectors, emphasizing cross-cutting sustainability topics. It includes governance, strategy, impact, and risk management areas, providing a structured framework for sustainability reporting. Additionally, it links to specific climate change standards and incorporates EU legislative datapoints for compliance.

1. draft ESRS 2
General Disclosures
Overview on the draft European Sustainability
Reporting Standards (ESRS)
May 2023

2. Index
• ESRS 2 – Objective
• Reporting Areas Overview
• ESRS 2 linked to topical standard
• Appendices (EU Legislation datapoints)
• Source
2 May 2023 ESRS Overview on the draft European Sustainability Reporting Standards

3. ESRS 2 - Objective
3 May 2023 ESRS Overview on the draft European Sustainability Reporting Standards
This draft ESRS:
• sets out the disclosure requirements that apply to all
undertakings regardless of their sector of activity (sector
agnostic) and apply across sustainability topics (cross-
cutting)
• covers the reporting areas defined in [draft] ESRS 1 General
requirements section 1.2 Cross-Cutting Standards and
reporting areas.

4. Reporting Areas Overview
4 May 2023 ESRS Overview on the draft European Sustainability Reporting Standards
GOVERNANCE STRATEGY IMPACT, RISK & OPPORTUNITY
GOV-1 the administrative,
management and supervisory
bodies role
GOV-2 Information provided to and
sustainability matters addressed by
the undertaking's administrative,
management and supervisory
bodies
GOV-3 Integration of sustainability-
related incentive schemes
GOV-4 Statement on sustainability
due diligence
GOV-5 Risk management and
internal controls over sustainability
reporting
SBM-1 Market position, strategy,
business model(s) and value chain
SBM-2 Interests and views of
stakeholders
SBM-3 Material impacts, risks and
opportunities and their interaction
with the undertaking’s strategy and
business model
IRO-1Description of the processes
to identify material sustainability
impacts, risks and opportunities
IRO-2 Disclosure Requirements in
ESRS covered by the
undertaking's sustainability
statements
For each material
Sustainability
matter disclose
DISCLOSURE CONTENT (DC)
POLICIES TARGETS
METRICS
ACTIONS

5. ESRS 2 linked to topical standard
the example of draft ESRS E1 Climate Change
5 May 2023 ESRS Overview on the draft European Sustainability Reporting Standards
ESRS2 Related General Disclosure Policies Actions & Resources (DC) Targets (DC)
DR related to ESRS2 GOV-3 Integration
of sustainability-related incentive
schemes
DR E1-1 Transition plan for climate
change mitigation (SBM compatible with
the limiting global warming 1,5°C)
DR related to ESRS 2 SBM-3 Material
impacts, risks and opportunities and their
interaction with the undertaking’s
strategy and business model
DR related to ESRS 2 IRO–1
Description of the processes to identify
material sustainability impacts, risks and
opportunities
DR E1-2 DC-P/Policies related to:
• Climate change mitigation
• Climate change adaptation
• Energy efficiency
• Renewable energy deployment
DR E1-3 DC-P/Actions (taken and
planned) and resources allocated in
relation to policies
Disclosure of:
- Decarbonisation levers
- Achieved and expected GHG
emission reductions
- Significant monetary amount of
Capex and Opex
DR E1-4 DC-T/Targets related to
climate change mitigation & adaptation
and to Energy
Metrics (DC)
DR E1-5 Energy consumption and mix
DR E1-6 Gross scope 1,2,3 and total GHG
emission
DR E1-7 GHG removals and GHG
mitigation projects financed through
carbon credits
DR E1-8 Internal carbon pricing
DR E1-9 Potential financial effects from
material physical and transition risks and
potential climate related opportunity

6. Draft ESRS2 -Appendices
6 May 2023 ESRS Overview on the draft European Sustainability Reporting Standards
C. List of datapoints from EU legislation
(SFDR, Pillar 3, EU Climate law)
D. Dislcosure/Application requirements in
topical ESRS to be applied with ESRS 2
E. Dislcosures of ESRS datapoints in
accordance with EU laws and ESRS 1
List of datapoints not subject to
the materiality assessment for
ESRS 2 and topical standards

7. Source
• EFRAG, First Set of draft ESRS https://efrag.org/lab6
• European Green Deal
https://ec.europa.eu/info/strategy/priorities-2019-2024/european-green-
deal_en
• European Climate Law
https://climate.ec.europa.eu/eu-action/european-green-deal/european-
climate-law_en
• NextGenerationEU
https://ec.europa.eu/info/strategy/recovery-plan-europe_en
• SFDR
https://eur-lex.europa.eu/legal-content/EN
• CSRD
https://ec.europa.eu/commission/presscorner/detail/en/qanda_21_1806
7 May 2023 ESRS Overview on the draft European Sustainability Reporting Standards

8. Marianna Sorrente
EFFAS Certified ESG Essentials©
Email: m.sorrente@gmail.com
Linkedin.com/in/mariannasorrente
8 May 2023 ESRS Overview on the draft European Sustainability Reporting Standards