EFRAG releases ESRS Implementation Guidance

EFRAG releases ESRS Implementation Guidance

The European Financial Reporting Advisory Group (EFRAG) has taken a significant step in promoting sustainability reporting by releasing its first three Implementation Guidance (IG) documents for the European Sustainability Reporting Standards (ESRS). 
These documents aim to provide practical assistance to organisations navigating the complexities of ESRS implementation.

1. Materiality Assessment Guidance (IG 1) 

IG 1 focuses on materiality assessment, a critical step in sustainability reporting. It offers an illustrative process for assessing materiality, complete with examples and frequently asked questions (FAQs). The guidance helps organisations disclose material impacts, risks, and opportunities. 

Key Highlights 
  • Double materiality assessment: IG 1 clarifies the dual perspective—financial and non-financial materiality. 
  • Practical examples: The document includes real-world scenarios to guide materiality assessments. 
  • Transparency: By addressing materiality, organisations enhance their reporting credibility. 

2. Value Chain Reporting Guidance (IG 2) 

IG 2 delves into value chain reporting, a crucial aspect of sustainability reporting. It outlines reporting requirements related to the value chain, including a ‘value chain map’ and additional FAQs. The guidance helps organizations define reporting boundaries and understand operational control within environmental standards. 

Key Highlights 

  • Mapping the value chain: IG 2 provides tools for visualizing the value chain’s components. 
  • Operational control: Understanding where an organization has control over its value chain activities. 
  • Clarity for stakeholders: Transparent reporting fosters trust and accountability. 

3. Detailed ESRS Datapoints (IG 3) 

IG 3 offers a comprehensive list of detailed ESRS requirements in Excel format. While not authoritative, this resource serves as a foundation for data gap analysis or data collection exercises. It ensures consistency in reporting across organizations. 


Key highlights 

  • Granular data points: IG 3 covers specific ESRS requirements, facilitating accurate reporting. 
  • Data quality: Organisations can use this list to assess data completeness and reliability. 
  • Practical utility: IG 3 supports ESRS implementation efforts. 


EFRAG’s Implementation Guidance documents bridge the gap between theory and practice. By providing practical insights, examples, and tools, they empower organizations to embrace sustainability reporting effectively. Transparency, materiality, and value chain understanding are at the heart of these resources. 
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