EFRAG Unveils First Batch of Technical Explanations for ESRS Implementation Support

EFRAG Releases First Set of Technical Explanations for ESRS Implementation Support

The European Financial Reporting Advisory Group (EFRAG) has published its initial series of technical explanations aimed at assisting stakeholders in the implementation of the European Sustainability Reporting Standards (ESRS). This initiative is part of EFRAG's broader effort to facilitate a clearer understanding and application of ESRS across the European Union.

Context and Overview

The European Sustainability Reporting Standards (ESRS) represent a significant step towards standardized sustainability reporting, aiming to enhance transparency and comparability across the EU. In response to the complexity and newness of these standards, EFRAG has established mechanisms to support stakeholders, including preparers and users of sustainability information, in their application and compliance efforts.

Stakeholder Engagement and Questions Received

Since the inception of the ESRS Q&A Platform in the fourth quarter of 2023, EFRAG has received a total of 258 technical questions by January 31, 2024. These inquiries cover a range of topics related to the implementation of ESRS, reflecting the diverse concerns and challenges faced by stakeholders. Out of these, 127 questions are identified for potential responses in the form of either Explanations or Implementation Guidance, with the first set of 12 Explanations now released. The remaining questions are under preliminary analysis, considered not technical, already addressed in other questions or existing guidance, or non-conclusive/out of scope.

The ESRS Q&A Platform

Launched in Q4 2023, the ESRS Q&A Platform serves as a central hub for collecting and addressing unresolved technical questions regarding ESRS. Stakeholders are encouraged to submit their questions through a dedicated electronic form, providing detailed information to facilitate the assessment process. EFRAG emphasizes the need for submissions to be comprehensive and of general relevance to ensure the usefulness of the responses. The platform allows for the submission of one question per form, with a feature to save and continue submissions at a later stage. You can reach it through this link.

The questions submitted and the responses provided by EFRAG are made public on the platform, although personal information and the names of organizations are kept confidential. This approach is designed to share knowledge and support a wide range of stakeholders in their implementation efforts.

Future Directions

EFRAG's release of the first set of technical explanations is a step towards addressing the practical challenges of ESRS implementation. By providing non-authoritative guidance that clarifies how to navigate the standards, EFRAG aims to support the adoption of ESRS and enhance sustainability reporting practices across the EU. Stakeholders can expect further releases of explanations, as EFRAG continues to process the questions received and engage with the sustainability reporting community.

For more details on the ESRS Q&A Platform and to access the technical explanations, stakeholders are directed to EFRAG's official website.

For technical explanations released on 5th of February: Follow the link