The European Sustainability Reporting Standards (ESRS) acts as the main guiding path behind Europe’s most ambitious vision for keeping organizations accountable and transparent. Designed under the Corporate Sustainability Reporting Directive (CSRD), these standards already guide thousands of companies in disclosing their ESG impacts.
In this article, we look into how to write a sustainability report and an effective ESRS sustainability statement, a must-have tool for showcasing your company’s ESG efforts and keeping them aligned with new and upcoming regulations.
What is an ESRS sustainability statement?
An ESRS sustainability statement is a formal disclosure required under the CSRD. This statement helps companies communicate their environmental, social, and governance impacts and risks. It emphasizes double materiality, requiring organizations to address not only their financial risks but also their social and environmental impacts.
The European Sustainability Reporting Standards are structured into four key categories: Cross-cutting standards, Environmental standards, Social standards, and Governance standards.
6 steps to write an ESRS sustainability statement
Whether you’re navigating the complexities of CSRD compliance or looking to enhance your climate-related reporting strategy, here are all the steps on how to write a sustainability statement to get you to your goal.
Understand what the ESRS sustainability statement requirements are
Start by looking at the mandatory disclosure elements in ESRS standards. By default, these include ESG materiality assessments, policy disclosures, and performance metrics. Companies can reference simplified guidelines like those in the Voluntary SME Standards (VSME) where applicable.
The goal is to make the reporting process proportionate to the scale and complexity of businesses while maintaining coherence with broader EU regulations.
Conduct a materiality assessment
Assess and prioritize your company’s material ESG issues using the ESRS double materiality framework. This should include past, current, and future activities while considering both severity and likelihood.
Materiality under the ESRS includes the size, scope, frequency, and reversibility of impacts, emphasizing both positive and negative effects. Identifying both direct and indirect environmental impacts helps align your sustainability goals with EU policies while minimizing compliance gaps.
Gather and organize your data
Collect quantitative and qualitative data that supports key ESRS sustainability disclosures. Include information on climate-related targets, resource use, and social initiatives.
Use validated environmental performance indicators like energy consumption or water use, as specified in Annex IV of the Eco-Management and Audit Scheme (EMAS) Regulation. EMAS provides verified environmental data, including assurance, which should be used for meeting ESRS requirements to the greatest extent possible.
Keep initiatives aligned with corporate strategy
Integrate sustainability initiatives into your corporate strategy. You’ll use these to demonstrate how ESG goals contribute to long-term resilience and stakeholder value creation.
The EMAS environmental policy can serve as an overarching strategy, complemented by ESRS-required disclosures on significant impacts and value chain considerations. Sustainability strategies tied to climate targets or circular economy goals ensure compliance and build stakeholder trust.
Draft and review your statement
Create a clear, concise document based on ESRS sustainability statement templates. Use frameworks like EMAS to avoid duplicative efforts and ensure consistency with EU regulations.
The same EMAS environmental statement mentioned above can act as a foundation for ESRS reporting, reducing duplication while maintaining compliance with both frameworks.
Your sustainability statement should include key disclosures aligned with global standards like the Paris Agreement. These disclosures should be on:
- Impacts, risks, and opportunities
- Policies, actions, and targets
- Specific metrics for environmental standards (e.g. energy, waste, and biodiversity)
Submit and communicate your final report
File the report with the appropriate authority, ensuring it meets ESRS guidelines. Communicate the findings publicly to foster transparency and stakeholder engagement.
EFRAG guidance recommends tailoring your presentation for different audiences to maximize the report’s impact. Notable audience types include investors, regulators, and local communities—each bringing their own different priorities into the picture.
Submit your statement through the appropriate regulatory channels and communicate it transparently to stakeholders. Within these, highlight how the statement addresses stakeholder interests and contributes to sustainable development.
EFRAG also notes that stakeholder engagement is key under both EMAS and the CSRD, requiring an open dialogue with the public and transparency about organizational impacts.
Sticking to the ESRS sustainability statement
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With innovative tools for data collection, materiality assessments, and compliance, Tracera helps enterprises align with CSRD requirements. Perfect for creating detailed ESRS sustainability statements!
Explore how Tracera streamlines compliance, fosters transparency, and drives meaningful impact with a free demo.