The IFRS Sustainability standard aims to satisfy the needs of investors in terms of non-financial data.
- Its IFRS definition of materiality is therefore closer to financial materiality: the information to be provided is that which is likely to be useful to investors.
- The impact of the company’s activities on the environment or society is taken into account indirectly, only in the case where this impact can affect an investor’s decision making.
- This standard is based on the company’s materiality analysis.
The ESRS is based on a double materiality analysis: the impact of the company’s activities on sustainability factors is a key element of this reporting standard.
- The ESRS text, therefore, includes mandatory reporting elements regardless of the outcome of the company’s materiality analysis.
- The reconciliation table also includes many disclosures required by ESRS E1 that are not required by IFRS S2.
The ISSB has not yet published a similar equivalence table between IFRS Sustainability Standards and ESRS. However, to improve the interoperability of these standards with other international standards, the ISSB established a dedicated working group in April 2022, of which EFRAG is a member.
The final version of the ESRS and the IFRS Sustainability Standards is expected to be adopted in mid-2023.
(1) EFRAG specifies that these tables do not take into account the deliberations of the ISSB following the publication of the first versions of the IFRS Sustainability Standards in March 2022.