ESRS Cross-cutting Standards

ESRS 1 and ESRS 2, form part of the cross cutting standards group and establish general principles and disclosures. These two sections are considered mandatory for all organizations reporting under ESRS, regardless of their materiality assessment.

This standard includes the framework details for sustainability reporting, explaining drafting conventions, key terms, and general prerequisites for creating and presenting sustainability-related information. Furthermore, this section also outlines the process to be followed by companies to carry their materiality assessment; and how to determine which specific disclosures are relevant to their business and operations.

While there are no specific disclosures to be made under this standard, these guidelines establish the requirements that undertakings need to comply for the reporting of other sections.

ESRS 2 sets out Disclosure Requirements (DRs) that organizations must follow at a general level across all material sustainability topics in different areas. In this sense, all disclosures within this section are mandatory for all undertakings, regardless of the outcome of their materiality assessment.

However, it is important to note that some disclosures in ESRS 2 are also present in other ESRS topical standards, like the Minimum Disclosure Requirements (MDRs). Thus, when reporting on policies, actions, and targets related to a sustainability matter deemed material, the undertaking must provide all required information as specified by the relevant DRs in compliance with the specifications outlined by the corresponding MDRs.