In May 2022, the EU published 13 proposals for new European Sustainability Reporting Standards (ESRS), which will complete the framework of the Corporate Sustainability Reporting Directive (CSRD) and apply to large Danish companies in the future.
Now EFRAG, which is in charge of the underlying ESR standards for the upcoming CSRD reporting, has just completed a cost-benefit analysis related to the standards that were sent in draft earlier this year - and this means that we now know the expected future reporting requirements that will apply to, among others, Danish companies in accounting class C (large).
The extensive analysis by EFRAG has led to some relaxations, but the work towards being ready to report on CSRD will still be extremely extensive for companies.
Among the changes we see compared to earlier drafts are:
- The number of disclosure requirements has been reduced from 136 to 85.
- The number of required data points has been reduced from 2,161 to 1,144.
- Number of standards reduced from 13 to 12 as ED ESRS G1 is removed.
- Some transitional provisions are added so phase-in is increased from 1 to 3 years.
- In general, a greater focus on materiality assessments.
Christian Møllegaard Larsen
Director, ESG Advisory Services
KPMG in Denmark
With these requirements in place, it is a good time to start the work if your company is part of accounting class C (large).
At KPMG, we can help you do the initial analysis that shows where you are and where you need to go. With our internationally developed tools, we can ensure an efficient and quick process of creating the overview and defining a way forward.
Please reach out if you would like to hear more.
Read more about sustainability reporting here
