What is CSRD and ESRS?

What it is

The CSRD replaced the earlier Non-Financial Reporting Directive and greatly expanded sustainability reporting in the EU. The ESRS set out the disclosure requirements, with cross-cutting standards and topical standards for environmental, social and governance matters.

ESRS E1 covers climate change, including energy consumption and mix, and Scope 1, 2 and 3 emissions. ESRS E3 covers water and marine resources, including water consumption and withdrawals in areas at water risk. Companies report on topics found material through double materiality. The EU has revised scope and timing through simplification measures, so check the current rules.

Who it applies to / where it is used

CSRD applies to large EU companies, listed companies and certain non-EU companies with significant EU activity, subject to the thresholds in force. Real estate, manufacturing, food, healthcare and infrastructure groups are commonly in scope.

How it is measured / what evidence it needs

Reported datapoints are subject to assurance, so measured data with a clear trail matters more than modeled estimates.

• Energy consumption by source for E1
• Scope 1 and 2 emissions
• Water consumption and withdrawals for E3
• Data for sites in areas at water risk
• Methods, boundaries and assurance records

How Aqueduct helps

Aqueduct supplies site-level energy and water data for E1 and E3 datapoints. The company and its auditor handle reporting and assurance.

• Metered energy by site and source through aQ EnergySmart
• Metered withdrawals, consumption and reuse through aQ WaterGuard
• Site-level data for locations in water-stressed areas
• Exports through aQ Assurance with an audit trail for assurance providers