Polski
The European Sustainability Reporting Standards (ESRS) sectoral sustainability reporting standards, to be issued by the European Commission, are still under development. The institution responsible for their development is the European Advisory Group for the Promotion of the Environment. The company is a member of the European Financial Reporting Advisory Group (EFRAG). One of the sectors for which ESRS standards will be prepared first is the mining and quarrying industry. Accordingly, on March 19, 2024. EFRAG has extended an invitation to the working group to related experts.
What are ESRS sector standards?
The work being carried out at the request of the European Commission by the European Advisory Group on the Environment. The European Financial Reporting Advisory Group’s (EFRAG) related European Sustainable Reporting Standards (ESRS) are the result of the Corporate Sustainability Reporting Directive ( CSRD ) passed by the European Parliament in 2022, replacing the Non-Financial Reporting Directive (NFRD).
The draft standards being prepared are divided into two sets:
- general, to which all reporting entities are subject, adopted by the EC in July 2023. and including 2 cross-cutting standards and 10 thematic standards, divided into environmental, social and business-related areas;
- sectoral (sector-specific) ones, which cover 40 sectors along with their specifics, which are still being worked on.
The ESRS general standards, which we wrote about in the 1/2022 issue of Water Matters, are primarily intended to ensure that the reported ESG (Environmental, Social and Governance) information is consistent and reliable, and that it can be compared. The sectoral ESRSs, which are in the process of being developed by EFRAG, are instead intended to be supplementary. Their purpose is to identify information requirements related to impacts, risks and opportunities not covered in the general guidelines.
What is the process for developing ESRS sector standards?
EFRAG’s process for developing ESRS industry standards is divided into two stages – preliminary (design) and final. Each is further divided into preparatory phases.
There are 4 phases in the design stage of the creation of industry standards:
- research – to identify priority sustainability issues in the industry and current disclosure practices;
- development – during which, on the basis of the information gathered and input from the sectoral community, a working document is prepared;
- validation – taking the form of a public discussion at the EFRAG SR TEG and EFRAG SRB meeting;
- approval of the project for public consultation.
The final stage of ESRS sector standards development, in turn, is divided into 5 phases, including:
- public consultation;
- Analysis of feedback obtained through public consultations;
- Discussing proposals and comments resulting from public consultations and making changes to the projects based on them;
- Approval of the final version of the draft ESRS,
- final editing of the draft before its publication by EFRAG.
The process associated with the development of ESRS industry standards is carried out each time in accordance with the institution’s procedures, which include, among other things, public consultations and discussions with technical experts.
At what stage are the ESRS industry standards for the mining and quarrying sector?
EFRAG is currently implementing industry-specific ESRS for two sectors – Oil and Gas and Mining, Quarrying and Coal. Both of them are at the design stage and have passed the research phase.
Industry ESRS standards for mining have already been preliminarily developed and are in the early stages of approval, with the related working document published on February 3, 2023. In order for the draft standards prepared to fully comply with EFRAG’s adopted due process procedures related to sustainability reporting standard setting, it is necessary to establish a sector community group. It is to be composed of experts in the field. mining and quarrying, who will be able to provide comments on the updated working document.
EFRAG invites experts to collaborate on ESRS standards for the mining and quarrying sector
Accordingly, EFRAG on March 19, 2024. issued an invitation encouraging technical experts with proven experience in the mining and quarrying sector to join the industry community. They were looking for both experts working on a daily basis in corporations operating in the aforementioned sectors, as well as representatives of social organizations or NGOs and researchers, and especially representatives of reporting companies.
The requirements they had to meet to join EFRAG’s sector community group were first and foremost established experience in the industry and a willingness to actively participate in project work and share their knowledge.
EFRAG is also expanding its activities by issuing calls for proposals to various thematic groups, demonstrating their commitment to a comprehensive approach to ESRS standards for multiple sectors. Once the work, including the public consultation stage, is completed, the draft ESRS standards are formally adopted by the European Commission in the form of regulations, which gives them binding force. This is a major step toward making sustainability reporting in the European Union more transparent and consistent.
