EFRAG, the technical adviser to the European Commission with regard to the European Sustainability Reporting Standards (ESRS) under the Corporate Sustainability Reporting Directive (CSRD), is currently focusing on sector-specific standards for the following so called "high-impact" sectors:

  • Agriculture, Farming and Fishing
  • Food and Beverage Services
  • Mining, Coal and Quarrying
  • Motor Vehicles
  • Oil and Gas
  • Power Production and Energy Utilities
  • Road Transport
  • Textiles, Accessories, Footwear and Jewellery

EFRAG is currently concentrating on the non-financial sector but has noted that financial sector standards related to capital markets/investments, insurance, lending and banking will be developed at a later stage. It is expected that EFRAG will consult on the sector-specific standards in due course and we will continue to monitor developments.

The CSRD requires the European Commission to adopt sector-specific standards by 30 June 2024. On 31 July 2023, the European Commission adopted the first set of ESRS under the CSRD, which apply to all in-scope companies, regardless of the sectors in which they operate. The first set of ESRS will apply from 1 January 2024, for financial years beginning on or after 1 January 2024 (first sustainability statement published in 2025) for companies within scope of the first phase of reporting under the CSRD.

This article contains a general summary of developments and is not a complete or definitive statement of the law. Specific legal advice should be obtained where appropriate.