{"id":4505,"date":"2025-01-05T11:35:17","date_gmt":"2025-01-05T09:35:17","guid":{"rendered":"https:\/\/esghub.ro\/?p=4505"},"modified":"2025-01-06T21:49:25","modified_gmt":"2025-01-06T19:49:25","slug":"esrs-standard-1-general-requirements-fundamental-basis-for-reporting","status":"publish","type":"post","link":"https:\/\/esghub.ro\/en\/standardul-esrs-1-cerinte-generale-baza-fundamentala-pentru-raportare\/","title":{"rendered":"ESRS 1 - General Requirements, the fundamental basis for reporting"},"content":{"rendered":"

ESRS Standard 1 -\u00a0<\/strong><\/span> is the fundamental basis for sustainability reporting in Europe. <\/strong><\/span><\/p>\n

It introduces dual materiality analyses, defines the boundaries of reporting and provides guidelines for the gradual implementation of the standards. <\/strong><\/span><\/p>\n

ESRS 1<\/strong> is mandatory for all reporting companies and is the foundation for all subsequent standards.
\n<\/span>It provides further detail on subsequent standards, specifying reporting obligations and associated data points.
\n<\/span><\/p>\n

General requirements<\/span><\/h2>\n

- sets out fundamental principles for sustainability reporting under the ESRS<\/span>
\n- introduces the dual materiality analysis methodology, defines the boundaries of reporting and includes guidelines for a step-by-step implementation, which<\/span>
\nregulates the phasing-in and enforcement of standards.<\/span>
\n- after initial identification of sustainability issues (IROs) (usually through a sustainability due diligence process)<\/span>
\nimplemented in the company), then the materiality of these aspects is determined. The dual materiality analysis implies that the criteria of<\/span>
\n\"impact materiality\", \"financial materiality\" or both. As long as one of these criteria is met, an issue or theme<\/span>
\nSustainability becomes material and therefore reportable.<\/span><\/p>\n

ESRS 1 is the basic structure for the other ESRS standards. <\/span><\/h2>\n

ESRS 1<\/strong> groups the reporting obligations in the other ESRS into 4 main categories.<\/span>
\nA basic understanding of these 4 main categories<\/strong> helps to clarify the requirements of the other standards and prepare reporting in these areas.<\/span>
\n1. Governance (GOV):<\/span><\/strong> this category refers to procedures and processes in the area of corporate governance, aimed at monitoring<\/span>
\nand managing impacts, risks and opportunities.<\/span>
\n2. Strategy and Business Model (SBM)<\/span><\/strong>: addresses how a company's strategy and business model interact with impacts,<\/span>
\nsignificant risks and opportunities and how the company manages them.<\/span>
\n3. Managing impacts, risks and opportunities (IRO)<\/span><\/strong>: describes the procedures by which a company identifies the impacts, risks and<\/span>
\nopportunities, assess their relevance and address appropriate sustainability issues.<\/span>
\n4. Metrics and targets (MT):<\/span> <\/strong>category covers company performance, including targets set and progress made in achieving<\/span>
\ntheir.<\/span><\/p>\n

ESRS 1 provides further detail on subsequent standards, specifying reporting obligations and associated data points.<\/span><\/p>\n

Reporting obligations<\/span> <\/strong>- relates to how information should be structured and disclosed according to ESRS standards. All standards<\/span>
\nThe ESRS, with the exception of ESRS 1, are organised according to these reporting obligations, which are grouped into reporting domains. Each obligation<\/span>
\nreporting is made up of smaller units called data points.<\/span><\/p>\n

Data points<\/span> <\/strong>- is the smallest information unit in the ESRS. They can contain both quantitative and qualitative information.<\/span>
\nESRS 1 provides a list of themes and sub-themes that can be considered in the identification process. However, if a company identifies other<\/span>
\nsustainability themes, it is obliged to include these themes in the subsequent assessment.<\/span><\/p>\n

Impact materiality and financial materiality<\/span><\/h2>\n

ESRS 1 requires separate assessment and reporting of impact materiality and financial materiality.<\/span>
\nIn the case of the materiality of impacts, a two-level distinction is made between positive and negative impacts, while differentiating between<\/span>
\nactual (actual) and potential impacts. The assessment is then carried out according to the criteria set out in ESRS 1:<\/span>
\n1. size<\/strong> - severity of (potential) impacts on people and the environment<\/span>
\n2. Enlargement<\/strong> - the spread of (potential) impacts, using, for example, geographical data for environmental impacts and the number of<\/span>
\npeople affected for impacts on people<\/span>
\n3. irreversibility<\/strong> - the degree to which (potential) impacts can be cancelled or repaired.<\/span><\/p>\n

For potential impacts, the resulting value is multiplied by the probability of occurrence.<\/span>
\nFor the assessment of financial materiality, this is also done on a risk-adjusted basis, taking into account the probability of occurrence and<\/span>
\nthe potential scale of impacts.<\/span><\/p>\n

ESRS 1<\/strong> also includes transitional rules (also called phase-in rules). To make it easier for companies to introduce<\/span>
\nreporting under the ESRS in the early years, there are regulations that allow certain issues, although identified as relevant following an analysis<\/span>
\npositive materiality not to be disclosed in the first years of reporting.<\/span>
\nESRS 1<\/strong> is the fundamental basis for sustainability reporting in Europe. It introduces dual materiality analyses, defines<\/span>
\nreporting boundaries and provides guidelines for phased implementation of the standards. ESRS 1 is mandatory for all companies that have<\/span>
\nreporting obligation and is the foundation for all subsequent standards.<\/span><\/p>\n

In analysing materiality, it should be noted that reporting firms can set their own materiality thresholds, according to which an aspect<\/span>
\nor a sustainability theme becomes material and thus reportable. The method for determining this threshold must be disclosed.<\/span><\/p>\n

Read the original Standard below<\/span><\/h2>","protected":false},"excerpt":{"rendered":"

Standardul ESRS 1 –\u00a0 reprezint\u0103 baza fundamental\u0103 pentru raportarea privind sustenabilitatea \u00een Europa. Acesta introduce analiza dublei materialit\u0103\u021bi, define\u0219te grani\u021bele raport\u0103rii \u0219i ofer\u0103 ghiduri pentru implementarea treptat\u0103 a standardelor. ESRS 1 este obligatoriu pentru toate companiile care au obliga\u021bia de raportare \u0219i constituie fundamentul pentru toate standardele ulterioare. Acesta ofer\u0103 o detaliere suplimentar\u0103 a standardelor […]<\/p>\n","protected":false},"author":8,"featured_media":4107,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"iawp_total_views":47,"footnotes":""},"categories":[91],"tags":[104,47,103],"class_list":["post-4505","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-standarde","tag-cerinte-generale","tag-esrs","tag-esrs-1"],"_links":{"self":[{"href":"https:\/\/esghub.ro\/en\/wp-json\/wp\/v2\/posts\/4505","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/esghub.ro\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/esghub.ro\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/esghub.ro\/en\/wp-json\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"https:\/\/esghub.ro\/en\/wp-json\/wp\/v2\/comments?post=4505"}],"version-history":[{"count":3,"href":"https:\/\/esghub.ro\/en\/wp-json\/wp\/v2\/posts\/4505\/revisions"}],"predecessor-version":[{"id":4583,"href":"https:\/\/esghub.ro\/en\/wp-json\/wp\/v2\/posts\/4505\/revisions\/4583"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/esghub.ro\/en\/wp-json\/wp\/v2\/media\/4107"}],"wp:attachment":[{"href":"https:\/\/esghub.ro\/en\/wp-json\/wp\/v2\/media?parent=4505"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/esghub.ro\/en\/wp-json\/wp\/v2\/categories?post=4505"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/esghub.ro\/en\/wp-json\/wp\/v2\/tags?post=4505"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}