The European Sustainability Reporting Standards (ESRS) were introduced by the European Financial Reporting Advisory Group (EFRAG) as the technical framework supporting the implementation of the Corporate Sustainability Reporting Directive (CSRD). They were formally adopted by the European Commission in 2023 and are designed to ensure that corporate sustainability reporting across the EU is consistent, comparable, and verifiable. The ESRS translate the principles of double materiality—a cornerstone of the CSRD—into operational requirements, defining how companies must measure and disclose the impact, risks, and opportunities related to their sustainability performance. They also align with global frameworks such as the IFRS Sustainability Disclosure Standards (ISSB) and the Global Reporting Initiative (GRI), ensuring interoperability at the international level.

ESRS provide detailed disclosure requirements that companies must follow when reporting sustainability information under the CSRD.

They are organized into three main categories:

1. Cross-cutting standards – applicable to all companies, covering general principles, governance, and strategy:

   • ESRS 1: General Requirements

   • ESRS 2: General Disclosures

2. Topical standards – focused on specific ESG areas:

   • Environmental (E): climate change, pollution, water and marine resources, biodiversity, resource use, and circular economy.

   • Social (S): own workforce, value chain workers, affected communities, and consumers.

   • Governance (G): business conduct, ethics, and risk management.

3. Sector-specific standards – currently under development, tailored to the material issues and impacts of particular industries.

The ESRS require companies to provide both quantitative metrics and qualitative insights on how sustainability is embedded in their strategy, operations, and value chain.

They also emphasize forward-looking information, encouraging organizations to disclose targets, transition plans, and progress toward long-term goals.

In the context of Contemporary Marketing Management, ESRS elevate sustainability from a communication theme to a strategic reporting discipline.

They require marketers and communicators to collaborate closely with finance, operations, and compliance teams, ensuring that sustainability storytelling aligns with verified data and measurable results.

This marks a decisive shift from perceived responsibility to proven accountability, reinforcing the credibility of brands and organizations in the European and global marketplace.

A multinational operating in the EU—such as IKEA or Volkswagen Group—must prepare sustainability reports following ESRS standards, detailing its carbon footprint, labor policies, supply chain transparency, and governance structure. The resulting reports are audited and published alongside financial statements, allowing investors and stakeholders to evaluate the company’s holistic performance and long-term resilience.