EU Corporate Sustainability Reporting Directive Value Chain Guidance Finalized – Key Points From The Guidance

Last Friday, EFRAG finalized its first three ESRS Implementation Guidance documents. The guidance addresses the materiality assessment (IG 1), value chain (IG 2) and ESRS datapoints (IG 3).

For the uninitiated, EFRAG (the European Financial Reporting Advisory Group) is the technical adviser to the European Commission that developed the draft European Sustainability Reporting Standards issued under the CSRD. Its mission is to serve the European public interest in both financial and sustainability reporting by developing and promoting European views in the field of corporate reporting.

In this post, we discuss IG 2, EFRAG's value chain implementation guidance. The guidance outlines the reporting requirements for the value chain from materiality assessment to policies and actions to metrics and targets. It illustrates the reporting boundary for sustainability reporting, including operational control for purposes of ESRS environmental standards. The guidance also