ESRS Exposure Drafts — What to Expect

The EFRAG delivered the final ESRS drafts to the European Commission. While format and structure are now stable, the implementation timeline will require companies to prioritize the most material topics first. Our latest brief summarizes the key changes and their impact on reporting plans.

• Clearer definition of impact vs. financial materiality.
• New structure of cross-cutting disclosures and topic standards.
• Reduced number of mandatory data points for the first cycle.

Download our summary note and timeline graphic from the Resources section.

Ensuring Consistency in Impact Valuation

With many approaches emerging, we highlight the need for consistency and transparency in impact valuation. Our Impact Accounting Framework uses context-based thresholds and monetary translation factors so that positive and negative effects can be aggregated fairly and compared across entities.

• Define a clear system boundary for each impact topic.
• Use public data sources for thresholds and prices where possible.
• Document choices and assumptions for audit and comparison.

PI Strategy Framework in Practice

Several organizations are now testing our Strategy Framework to translate impact results into strategic ambition levels. The five levels — from “No Ambition” to “Sustainability Driven” — help boards decide how fast and how deep to integrate sustainability into core business models.

We share case examples of how companies link their impact scores to KPIs and investment plans.

Events & News

• Workshop: “Impact Accounting Basics” — Cologne · October 25.
• Webinar: “Understanding ESRS Structure” — October 28 · Online.
• Article in ESGZ magazine on “Double Materiality as Accounting Logic.”