A concise guide to understanding the pivotal sections and themes of contemporary ESG reporting and their implications for businesses.

ESRS 2 – General Disclosures: This section emphasizes the overarching transparency measures and communications strategies companies should implement concerning ESG factors. In essence, it’s about how businesses report their ESG activities and impacts to stakeholders.

ESRS 2 – Minimum Disclosure Requirements (MDR): MDR sets the baseline data and information points that businesses must disclose to ensure consistent and comprehensive ESG reporting. It acts as a foundational guideline for companies to meet the bare minimum ESG communication standards.

E1 – Climate Change: This pertains to a company’s contributions and responses to the global challenge of climate change. It evaluates how businesses mitigate their carbon footprints and adapt to changing environmental conditions.

E2 – Pollution: Focuses on how companies manage, reduce, or eliminate their pollution emissions. This section assesses the efforts made by businesses to minimize their negative impact on air, land, and water quality.

E3 – Water and Marine Resources: Details a company’s water usage, conservation strategies, and impact on marine ecosystems. It underscores the importance of sustainable water management and the protection of marine biodiversity.

E4 – Biodiversity and Ecosystems: Highlights the significance of preserving diverse ecological systems and the measures companies take to protect habitats. This segment assesses how businesses impact, both positively and negatively, various ecosystems.

E5 – Resource Use and Circular Economy: Addresses a company’s resource consumption patterns and their adoption of a circular economy model. It emphasizes the reduction of waste, the reuse of materials, and the recycling of resources to minimize environmental harm.

S1 – Own Workforce: This section revolves around the welfare, rights, and development of a company’s direct employees. It evaluates factors like fair wages, workplace safety, and employee well-being.

S2 – Workers in the Value Chain: Considers the well-being and rights of workers not directly employed by the company but are part of its supply chain. It ensures that ethical labor practices are upheld even outside the company’s immediate jurisdiction.

S3 – Affected Communities: Addresses the company’s impact on local communities, especially those in proximity to its operations. It evaluates community engagement, impact assessments, and mitigation strategies for any adverse effects.

S4 – Consumers and End-users: Focuses on the company’s responsibility towards its consumers, emphasizing product safety, quality, and ethical marketing practices. It ensures that end-users’ rights and well-being are a priority in business operations.

G1 – Business Conduct: Pertains to the ethical and legal standards upheld by the company in its operations. This section reviews corporate governance, anti-corruption measures, and overall business ethics.