EFRAG launches workshops on its draft Sector Classification
About the Sector Classification
The development of sector-specific ESRS is a multi-year effort related to the implementation of the Corporate Sustainability Reporting Directive. As part of its mandate given by the European Commission, EFRAG is tasked with developing sector-specific draft ESRS. The details of this process are provided in our dedicated webpage.
Preparing the sector-specific draft ESRS requires distinguishing between different economic activities that fall into specific ESRS sectors. For this reason, EFRAG is developing its Sector Classification in a dedicated draft ESRS (ESRS SEC 1), which will be put out for consultation in 2024. These ESRS identify the perimeter of activities that are to be aggregated into industry sectors. They also deliver guidance for undertakings (i) to apply the Disclosure Requirement SBM – 1 (strategy, business model and value chain) in the ESRS issued as Delegated Act in July 2023 and (ii) to identify the future sector-specific draft ESRS that will be relevant for them.
Draft ESRS SEC 1 builds on the existing NACE Rev. 2-1 classification system (Nomenclature générale des Activités Economiques dans les Communautés Européennes), categorising the NACE business activities by ESRS sectors based on common characteristics of sustainability impacts, risks and opportunities.
Feedback from stakeholders on the draft classification is an integral part of EFRAG's due process in developing ESRS.
The EFRAG Secretariat is organising a series of workshops in February before the Exposure Draft of ESRS SEC 1 is submitted to EFRAG SR TEG and to EFRAG SRB for approval in preparation for the consultation.
The purpose of these workshops is to allow participants to provide comments on the following:
1. the overall adequacy of the proposed classification (i.e., the proposed grouping of NACE economic activities),
2. the existing sector descriptions and definition and
3. the proposed divisions into groups and ESRS sectors.
The Sector classification workshops will take place on the following dates:
| Nr | Indicative grouping of sectors presented | Date |
| 1 | Agriculture – Food and Beverages – Forestry -Paper and Wood products – Tobacco | 06 February 2024 AM |
| 2 | Mining – Oil and Gas – Power production and energy utilities – Water and Waste | 06 February 2024 PM |
| 3 | Education – Information technology – Marketing – Media and communication – Professional services | 08 February 2024 AM |
| 4 | Chemicals – Construction and engineering – Construction materials – Construction and furnishings – Metal processing | 08 February 2024 PM |
| 5 | Capital Markets – Credit institutions – Insurance – Real estate | 13 February 2024 AM |
| 6 | Health care – Medical instruments – Pharma and biotechnology | 13 February 2024 PM |
| 7 | Accommodations – Food and beverages services – Gaming – Recreation and Leisure | 16 February 2024 AM |
| 8 | Defence – Electronics – Machinery and equipment – Motor vehicles | 16 February 2024 PM |
| 9 | Other transportation – Road transport | 20 February 2024 AM |
| 10 | Sporting equipment and toys – Textiles | 22 February 2024 AM |
| 11 | Sales and trade | 22 February 2024 PM |
To join the workshops, please subscribe to EFRAG's Sector-Specific Communities and select your sector(s) of interest using this link, unless you are already part of the communities as you registered in the past.
The agenda for the workshops will be shared with registered participants through mailings to EFRAG Sector-Specific Communities.
The last working paper of draft ESRS SEC 1 discussed in a public meeting is available through the following link: