05/02/2024 - EFRAG ESRS Question and Answer Platform releases first set of technical Explanations

In the fourth quarter of 2023, EFRAG launched its ESRS Q&A Platform to collect and answer technical questions, supporting preparers and other stakeholders with the implementation of the European Sustainability Reporting Standards (ESRS) issued as Delegated Act.

Answers may take the form of Implementation Guidance, which is exposed to public feedback before being finalised, or Explanations, which are not exposed to public feedback. Implementation Guidance and Explanations are non-authoritative in nature; they are not issued as Delegated Acts, and they are final once released by EFRAG.

Explanations cover cases in which the content of ESRS already provides an appropriate answer. In these cases, the Explanation issued by EFRAG shows where in the ESRS the content is provided and how to navigate the ESRS accordingly.

Today, EFRAG is pleased to release the first set of Explanations to respond to questions received. These responses are provided as part of its role of technical advisor to the European Commission and are expected to provide a practical and timely support for preparers and others in the implementation of ESRS.

Following due process, which includes engagement of both EFRAG's Sustainability Reporting Board and Technical Expert Group in public discussions, the first group of 12 Explanations is released today.

Out of the 258 questions received as of 31 January 2024, 127 are expected to result in either an Explanation (106) or an Implementation Guidance (21) and 17 are still under preliminary analysis. The remaining questions are considered to be either not technical in nature (30) or already addressed in other questions or in existing guidance (45) or non-conclusive/out of scope (39). Most of the Explanations are already under drafting process. The first set of Explanations issued today will be followed soon by additional releases: 29 additional draft Explanations are currently submitted to EFRAG SR TEG or EFRAG SRB.

The Explanations released today are grouped in chapters according to their nature (cross-cutting, environment, social, governance). EFRAG plans to issue on a quarterly basis the collection of all the Explanations issued as of the end of the quarter, split by type, to facilitate accessibility.

As of 31 January, the questions received related to cross-cutting standards (38%), to topical standards on environment (22%),  to social sustainability matters (20%), to governance or XBRL (5%) or to other matters (15%). More than 40% of questions are submitted by preparers or industry associations, followed by users of sustainability information (15,4%) and assurance providers (almost 8%). Question submitters are mostly based in EU member states.

Patrick de Cambourg, EFRAG SRB Chair, commented, "With the release of the first batch of Explanations, EFRAG is progressing in the provision of practical and timely material to support the implementation of ESRS, which continues to be a priority for the EFRAG SRB."  

Chiara Del Prete, EFRAG SR TEG Chair, commented, "The ESRS Q&A platform is a very important communication channel with our stakeholders as it allows us to explain the implementation of our standards while observing directly the practical challenges raised by them."   

Click here to access the full document.