[UE] Publication of corrections to sustainability reporting standards for large companies

Delegated Regulation (EU) 2023/2772 of July 31, 2023, published in the OJEU on December 22, 2023, supplements Directive 2013/34/EU of June 26, 2013 relating to annual financial statements, consolidated financial statements and related reports of certain forms of business in relation to the Sustainability Reporting Standards (ESRS). These new provisions apply from January 1, 2024 for financial years beginning on or after that date.

A Corrigendum to Commission Delegated Regulation (EU) 2023/2772 was finally published in the OJEU on 19 April 2024. This contains 80 corrections to Annex I (European Sustainability Reporting Standards (ESRS) ) and Annex II (Acronyms and Glossary of Terms) of the Delegated Regulation.

Fixes include:
• In ESRS 1 “General requirements”, paragraph 91, point (a), the concept “potential financial effects of events” should be replaced by “expected financial effects of events”

• In ESRS 2 “General information to be published”, paragraph 53, point (c) ii, the phrase “the manner in which the enterprise assesses the likelihood, magnitude and nature of the effects of identified risks and opportunities (as the qualitative and quantitative thresholds and other criteria used as prescribed by ESRS 1, section 3.3 Significance from a financial point of view)” must be replaced by “the way in which the company assesses the probability, magnitude and nature of the effects of identified risks and opportunities (including qualitative and quantitative thresholds and other criteria used as prescribed in ESRS 1, section 3.5 Financial significance)”

• In ESRS E1 “Climate Change”, Appendix A “Application requirements”, paragraph AR 33, instead of “The information required under paragraph 37(a) is applicable if the company is active in one less one sector with a high climate impact”, read: “The information requirements of paragraph 38 are applicable as long as the company is active in at least one sector with a high climate impact”

• In ESRS S1 “Enterprise Workforce”, Table of Contents, Appendix A.3, the title “Appendix A.3: Disclosure Requirement S1-4 — Actions on Significant Impacts, Approaches to Mitigate Risks and to seize significant opportunities relating to the company’s workforce, and the effectiveness of these actions and approaches” should be replaced by “Appendix A.3: Application requirement for ESRS S1-4 — Actions regarding significant impacts, approaches aimed at managing significant risks and seizing significant opportunities relating to the company’s workforce, and the effectiveness of these actions and approaches”

• In the ESRS S4 standard “Consumers and end users”, Appendix A “Application requirements”, paragraph AR 37, point d, the phrase “economic opportunities linked to its dependencies on consumers and end users, among which may include the creation of a future loyal customer base by ensuring respect for LGBTQI people and adopting commercial practices which do not exclude these people from the products or services offered by the company” must be replaced by “opportunities linked to its dependencies on consumers and/or end users, which may consist of ensuring a future loyal customer base by ensuring, for example, respect for LGBTQI people and by adopting commercial practices which do not exclude these people from products or services it offers »