How to implement the ESRS in your company step by step

Implementing the ESRS (European Sustainability Reporting Standards) means preparing your company to report comparable, reliable and verifiable sustainability information under the CSRD framework. The process revolves around double materiality, sound data governance and external assurance.

The timeline and scope have changed substantially with the Omnibus package. Directive (EU) 2026/470, published in the Official Journal of the EU in February 2026, raises the thresholds and postpones the obligation: most large companies that were not subject to the former NFRD will report for the first time on the 2027 financial year. It is therefore worth planning ahead, even if the first report seems distant.

What are the ESRS and why do they matter?

The ESRS set a common framework for companies to report their environmental, social and governance (ESG) impacts and information. They are based on the principle of double materiality: a company must consider both the impacts of its activity on people and the environment (impact materiality) and the way sustainability factors affect its financial situation (financial materiality).

Following the revision led by the European Commission and EFRAG, the ESRS have been significantly simplified: the technical proposal cuts mandatory data points by around 61%, removes voluntary disclosures and improves interoperability with the ISSB standards. The delegated act with the revised ESRS is expected to be adopted in mid-2026, applying to the 2027 financial year, with the option of early application in 2026. For the detail of the changes, see our guide to the Omnibus Regulation and our analysis of the changes to the ESRS.

Benefits of implementing the ESRS

Adopting the ESRS is not only about meeting the rules; it is a chance to use the process to improve internal management. The clearest benefits include:

• Stronger reputation and trust: transparency on sustainability improves how stakeholders see the company and reinforces brand image.
• Access to responsible finance: investors applying ESG criteria prioritise companies with solid performance and verifiable data.
• Better risk management: identifying sustainability-related risks and opportunities early helps you stay ahead of regulatory and market changes.
• A boost to efficiency and innovation: embedding ESG criteria in strategy encourages more efficient processes, products and business models.

How to implement the ESRS: a step-by-step guide

1. Analyse and understand the requirements

• Know the applicable framework: identify which ESRS apply to you according to your size, sector and the date you enter the scope of the CSRD.
• Identify the material topics: determine which sustainability matters are relevant to your business and your stakeholders.
• Define the reporting scope: set the information you will need to disclose based on the materiality assessment.

2. Gap analysis

• Assess your starting point: review current processes and systems for collecting and reporting sustainability information.
• Compare against the ESRS: contrast your situation with the requirements of the standards and pinpoint the gaps. The gap analysis is the basis of the work plan.
• Draw up an action plan: define objectives, deadlines and owners to close each gap.

3. Data management system

• Centralise the information: you need a reliable system to collect, store, process and verify sustainability data.
• Automate collection: technology reduces errors and frees up resources by connecting sources such as ERP systems, invoices or supplier data.
• Ensure data quality: put in place validation and traceability controls on a par with those used for financial data.

4. Alignment with strategy

• Integrate sustainability into the culture: ESG criteria must be part of the company’s values and decisions.
• Embed it into operations: procurement, risk management and the supply chain should reflect sustainability objectives.
• Document policies and procedures: formalise how the ESRS are applied to guarantee compliance.

5. Preparing the sustainability report

• Clear structure: the sustainability report should address the material topics in an orderly, transparent way.
• Suitable indicators: select the KPIs that best reflect your performance.
• Accessible language: tailor the communication to your different stakeholders.

6. External review and assurance

• Accredited assurer: the CSRD requires independent assurance. Under the current regime, limited assurance is retained.
• Audit preparation: give the assurer access to the documentation and to the people responsible for each data point.
• Managing non-conformities: put corrective actions in place for any shortcomings detected.

7. Monitoring and continuous improvement

• Performance tracking: measure progress against your sustainability objectives.
• System updates: review processes and data to keep pace with regulatory changes.
• Continuous improvement: implementing the ESRS is a dynamic process, not a one-off project.

Updated timeline: when do I have to report?

With Directive (EU) 2026/470, the CSRD focuses on larger companies. The scope covers those exceeding 1,000 employees and €450 million in net turnover, which will report for the first time on financial years starting on or after 1 January 2027. Large companies that already reported under the NFRD keep their obligation. To understand how the two frameworks fit together, we recommend the comparison in CSRD and ESRS: differences and similarities.

Manglai, your ally in ESRS reporting

At Manglai we make the most demanding part of the process easier: data management. As specialists in carbon footprint measurement and in the GHG Protocol and ISO 14064, our platform lets you calculate Scope 1, 2 and 3 emissions in real time, automate data collection from ERP systems and other sources, and generate auditable reports aligned with the ESRS.

If your company is preparing its reporting strategy, you can rely on our CSRD compliance solution to organise the data and approach assurance with confidence.