On 5 January 2023, the Corporate Sustainability Reporting Directive (CSRD) entered into force. This new directive updates the rules concerning the social and environmental information that companies have to report. Companies subject to the CSRD will have to report according to European Sustainability Reporting Standards (ESRS). These standards were developed by the EFRAG, previously known as the European Financial Reporting Advisory Group, an independent body bringing together various different stakeholders.

ESRS take a “double materiality” perspective –  companies are obliged to report both on their impacts on people and the environment, and on how social and environmental issues create financial risks and opportunities for the company. ESRS 1 (“General Requirements”) sets general principles to be applied when reporting according to ESRS and does not itself set specific disclosure requirements. ESRS 2 (“General Disclosures”) specifies essential information to be disclosed irrespective of which sustainability matter is being considered. All the other standards and the individual disclosure requirements and datapoints within them are subject to a materiality assessment

The ESRS impact materiality requirements are closely aligned with UNEP FI’s own focus on, and approach to, impact management.

 

Interoperability package

An Interoperability package has been developed to help leverage PRB implementation and the UNEP FI holistic impact methodology for CSRD/ESRS implementation:

  • UNEP FI- ESRS Interoperability Guide: Understand how the PRB requirements and the UNEP FI Impact Methodology relate to CSRD/ESRS and can support implementation, in particular impact materiality assessment.
  • UNEP FI-ESRS Topics Mapping: Understand how the ESRS topics and subtopics map to the impact areas and impact topics of the UNEP FI Impact Radar and vice versa.
  • ESRS Disclosure Module: Translate the results from the UNEP FI Impact Analysis Tool (Context and Identification Modules) to enable input into the relevant ESRS data-points in relation to impact materiality assessment.

To access the package, please visite the members area.

For more information please contact us.

 

Community of Practice on ESRS Impact Materiality Assessment:

The Interoperability Package was developed through a dedicated Working Group of PRB signatories. Building on the activities of the Working Group, UNEP FI is convening a Community of Practice (CoP) to support all interested member banks in the practical implementation of the ESRS impact materiality assessment.

Key objectives include:

  • Facilitate peer exchange on practices and challenges related to implementing the ESRS impact materiality assessment, including the use of the UNEP FI Impact Management resources
  • Discuss and possibly input to Omnibus simplification measures as regards materiality assessment
  • Discuss and test refinements to the UNEP FI-ESRS Interoperability Package, following Omnibus changes to the ESRS

The Community of Practice is relevant to all individuals responsible for or contributing to bank’s CSRD implementation. Relevant experts will be drawn into the sessions.

If you are interested in participating, please contact us.

 

You may also be interested in:

05.02.2024 – UNEP FI’s input to EFRAG’s Implementation Guidance on Materiality Assessment (IG1). Read the input here.