ESRS: European Standards for Uniform and Transparent Sustainability Reporting

Sustainability reporting is becoming an increasingly strategic tool for companies. Regulations and obligations – such as the introduction of the ESRS, European Sustainability Reporting Standards – are increasingly pushing companies to communicate externally how they manage their environmental, social and governance impacts. These standards offer an opportunity to improve their transparency and competitiveness in an increasingly ESG-conscious market, particularly for small and medium-sized companies. Proactively adopting these standards, even on a voluntary basis, can position SMEs as sustainability leaders, opening up new business opportunities and enhancing their reputation in the market.

ESRS European Sustainability Reporting Standards

Sustainability Reporting Standards – ESRS – play a crucial role in improving the comparability of information, while reducing the risk of selective or misleading disclosures. In this context, the European CSRD, Corporate Sustainability Reporting Directive, introduced ESRS – developed by EFRAG, the European Financial Reporting Advisory Group – as a single reporting standard. The adoption of the ESRS standards represents a decisive step towards more consistent and uniform sustainability reporting at the European level.

This comprehensive and detailed structure of the ESRS aims to provide a robust and flexible framework capable of adapting to the different needs of European companies, while promoting greater transparency and comparability in the sustainability reporting of very different companies.

A particularly interesting aspect for Small and Medium-sized Enterprises (SMEs) is the development of specific standards for listed SMEs whose reporting obligation will be triggered in 2027 on 2026 data. However, unlisted SMEs can begin to familiarise themselves with these standards through voluntary reporting.

The implementation of ESRS

EFRAG is working on a voluntary standard for SMEs that are not subject to CSRD, thus providing an opportunity for smaller companies to align themselves with sustainability best practices, thereby preparing for future regulatory developments and responding to growing stakeholder and market demands for transparency.