The European Union is introducing new rules for companies to report on their sustainability, called the European Sustainability Reporting Standards (ESRS). This will start in 2024 for some companies. The ESRSs cover a wide range of environmental and social issues, and companies will also need to report on how their sustainability affects their finances. One challenge is that the ESRSs differ from other sustainability reporting rules, such as the ISSB Standards. Companies will need to be careful to make sure they are meeting all the requirements. Companies need to start getting ready now for ESRS reporting. This includes understanding the rules and assessing how their company needs to adapt.
Source: KPMG
