Sector-specific ESRS
Introduction
As part of its mandate granted by the CSRD to provide technical advice to the European Commission (‘EC’) on ESRS, EFRAG is tasked to develop a set of sector-agnostic draft ESRS. This will be a multi-year exercise.
In particular, EFRAG’s mandate also includes the development of “information that undertakings should disclose depending on their sector of activity” (Recital 53 CSRD). For this reason, in September 2022, EFRAG started the development of the first set of Exposure Drafts, including SEC1 Sector Classification and 4 sector standards. However, in March 2023, the EC asked EFRAG to prioritise work related to the implementation of the sector-agnostic ESRSs. In 2024, EFRAG expects to continue its work on high-impact sectors and financial institutions.
On this page, interested stakeholders can find more information on:
- the development process of sector-specific standards,
- the standards that have been developed,
- the standards in development and
- planned activities on sector developments.
You can also join our sector communities and engage with EFRAG's sector development work.
Sector-specific standard development process
The development process includes two main stages, each one having specific phases detailed below.
The sector standard development process consists of an Exposure Draft stage with four initial phases:
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Research: laying the foundations of the drafting phase by identifying and prioritising the key sustainability matters and identifying current disclosure practices;
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Drafting: writing the Working Paper based on the information collected, as well as input from EFRAG’s sector community. Public technical discussions of the EFRAG SR TEG (advisor to the SRB ) and EFRAG SRB (decision maker) set the directions for the drafting and possibly drafting sessions;
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Validation: validating the work done through public discussions on draft standards at EFRAG SR TEG and SRB meetings.
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Approval of the exposure drafts for public consultation by SR TEG and the EFRAG SRB .
For each of the sectors identified below, the EFRAG Secretariat has built Sector Community Groups to allow a diverse range of external stakeholders to input, contribute and support the work of developing draft sector-specific ESRS. Sector community members will be informed and consulted during this stage.
After the approval of the ED, the final draft stage is initiated consisting of 5 phases:
- Public consultation: the ED is subject to public consultation per the EFRAG due process;
- Analysis: The EFRAG Secretariat analyses the feedback from the public consultation and summarises the main points;
- Redeliberation: the main points coming out from the public consultation are deliberated by EFRAG SR TEG and SRB, and draft standards are drafted;
- Approval of the draft standards by EFRAG SR TEG and by the SRB;
- Finalisation: editing of approved documents before publication as technical advice to the European Commission.
The estimated time to complete the development cycle for one standard may be more than 18 months. The decision on which standards to develop is in the remit of the EFRAG SRB and is informed by a prioritisation process, such as focusing on high-impact sectors and on the role of financial institutions in facilitating the objectives of the European Green Deal. The EFRAG Secretariat develops a position which is then discussed, modified and approved by EFRAG SR TEG and ultimately SRB.
EFRAG standard-setting process is conducted following the EFRAG due process procedures, including public consultation and technical discussions in public at EFRAG SR TEG and SRB.
Sector Specific draft Standards
Currently, EFRAG’s priority is implementation support for those adopting the sector-agnostic ESRS. Nonetheless, EFRAG continues its development of sector-specific standards at secretariat level with the help of secondments-in-kind even if not currently discussed by SR TEG and SRB. The calendar for standards, as well as an indication of the phase, is shown below.
| Sector | Current phase | Next step | Expected start of next step |
|---|---|---|---|
| Oil and Gas | Approval of Exposure Draft | Issuance of ED | Q4 2024 |
| Mining, quarrying and coal mining | Approval of Exposure Draft | Issuance of ED | Q4 2024 |
| Road transport | Validating | Strategic direction from SRB | Q4 2024 |
| Textiles, accessories, footwear and jewellery | Validating | Strategic direction from SRB | Q4 2024 |
| Financial institutions | Early Draft - Research | Education sessions to governance bodies | Q4 2024 |
| Agriculture, farming and fishing | Early Draft - Research | Not scheduled | Not scheduled |
| Motor vehicles | Early Draft - Research | Not scheduled | Not scheduled |
| Energy production and utilities | Early Draft - Research | ||
| Food and beverage | Early Draft - Research |
Community Sector Groups
The Community Sector Groups consist of stakeholders interested in the development of ESRS. These stakeholders consist of preparers and preparer organisations, civil society members, social partners, investment partners or any other organisations with a particular interest in a specific sector. Community members:
- support the identification of relevant and important sustainability matters for each sector,
- provide input to the development of draft standards,
- participation in workshops or other contact with the drafting teams,
- contribute to the public consultation and other outreaches, surveys, field test or impact studies organized on the Exposure Drafts.
The EFRAG Secretariat organises dedicated workshops to the sector community members for each sector standard being developed. The objective of the workshops is to inform the sector community members and obtain their feedback on concrete questions. Workshops may address aspects such as:
- Process, planning and expectations;
- Identification of suitable sources of reporting practices, standards, public and private initiatives, etc.;
- Presenting and discussing research on relevant sustainability matters and applicable legislation;
- Prioritisation of sustainability matters;
- Discussion of disclosure requirements for inclusion in the sector specific draft standards;
- Other matters, for example, discussion on a particular drafting question.
To find more about these sessions, please consult the page on the sector of your interest.
Joining a Sector Community
To join a Sector Community, please complete this form. This will include you in EFRAG’s contact lists as a member of the sector community (ies) you have chosen.
Subscribing to a workshop
- As a Sector community member: use this online application [to be provided soon] to subscribe for a workshop.
- As a member of the general public: Please subscribe to the monthly EFRAG update on our website or follow us on social media for further information on workshops.
Workshop calendar
More information will follow.
Do you have questions on our sector work?
Contact us sector_spec_stds@efrag.org
Project pages
SEC1 Approach and classification
Basis for sector standard setting setting out the general approach of the standard setter as well as the sector classification decided.
Mining, quarrying and coal mining
Sector standards for those entities extracting metals, including coal as well as quarrying of stones and the related services.
Oil and gas
Sector standards for entities in the upstream, midstream, downstream and services sub-sectors.
Road transport
Sector standards for entities providing passenger land transport and freight transport services by road.
Financial institutions
Reporting standards on sustainability for financial institutions: banks, capital markets and insurance.