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Legislation and regulation

How to implement ESRS standards in your company

Andrés Cester

Andrés Cester

CEO & Co-Founder

The European Sustainability Reporting Standards (ESRS) represent a paradigm shift toward a more transparent and responsible economy. Starting in 2025, their application will be mandatory, urging companies to integrate sustainability into the core of their strategies and operations.

Adopting ESRS provides a unique opportunity to boost competitiveness, strengthen corporate reputation, and attract responsible investment. This article explores the key steps to implementing the European Sustainability Reporting Standards (ESRS) in your business.

What are ESRS?

The European Sustainability Reporting Standards establish a common framework for companies to report comparable, reliable, and relevant information about their environmental, social, and governance (ESG) impacts.

ESRS is based on the principle of "double materiality," requiring companies to consider both:

  • Their activity’s impact on sustainability.
  • The risks and opportunities sustainability factors pose to the company.

Benefits of implementing ESRS

Implementing ESRS is not just about regulatory compliance but also leveraging an opportunity to drive positive change.

Key benefits include:

  • Strengthened reputation and trust: Transparency in sustainability reporting enhances stakeholder perception, improving brand image and building market trust.
  • Attracting responsible investment: Investors increasingly prioritize companies with strong ESG performance, facilitating access to funding.
  • Improved risk management: Early identification of sustainability-related risks and opportunities enables businesses to adapt to changes in the environment.
  • Fostering innovation and efficiency: Integrating ESG criteria into business strategy encourages the development of sustainable products, processes, and business models.

How to implement ESRS in your company: a step-by-step guide

Successfully implementing ESRS requires strategic planning and a methodical approach.

1. Analyze and understand ESRS requirements

  • Familiarize yourself with the regulatory framework: Understand the specific ESRS requirements and their application to your industry and company size.
  • Identify material topics: Determine which sustainability aspects are most relevant to your business and stakeholders.
  • Define the reporting scope: After identifying material topics, establish the scope of the information to report.

2. Conduct a gap analysis

  • Evaluate current state: Assess existing processes and systems for collecting, managing, and reporting sustainability information.
  • Compare with ESRS requirements: Identify gaps between your current practices and ESRS standards.
  • Develop an action plan: Create a strategic plan to address identified gaps, setting objectives, timelines, and responsibilities.

3. Implement a data and information management system

  • Establish a robust system: Develop reliable processes to collect, store, process, and verify sustainability data.
  • Automate processes: Use technology to automate data collection and analysis, reducing errors and freeing up resources.
  • Ensure data quality: Guarantee accuracy, integrity, and traceability through quality controls and validation processes.

4. Align ESRS with corporate strategy

  • Integrate sustainability into company culture: Embed sustainability into the values and practices of the business.
  • Incorporate principles into operations: Apply sustainability principles to daily operations, including supply chain management, risk management, and decision-making.
  • Establish procedures: Develop internal policies and procedures to guide ESRS implementation and compliance.

5. Prepare a sustainability report

  • Define structure and content: Create a clear, concise report addressing identified material topics and presenting information transparently.
  • Select key performance indicators (KPIs): Use relevant KPIs to measure and communicate sustainability performance.
  • Communicate clearly: Ensure the language is accessible and understandable to various stakeholders.

6. Review and verify externally

  • Choose an independent verifier: Engage a third-party accredited to verify the reported information, ensuring credibility.
  • Prepare for audits: Provide necessary documentation and access to responsible personnel during external audits.
  • Address non-conformities: Implement corrective actions to resolve deficiencies and improve the management system.

7. Monitor and continuously improve

  • Track performance: Monitor progress in implementing ESRS and meeting sustainability objectives.
  • Review and update the system: Regularly update the sustainability management system to adapt to regulatory changes and best practices.
  • Commit to continuous improvement: Treat ESRS implementation as a dynamic process requiring ongoing dedication to better sustainability performance.

Your strategic partner on the path to sustainability

At Manglai, we understand the challenges and opportunities ESRS presents for businesses. As experts in carbon footprint measurement and specialists in GHG Protocol and ISO 14064, we provide advanced technological solutions to streamline and optimize sustainability reporting.

Our platform, designed to simplify environmental data management, allows companies to:

  • Calculate real-time carbon emissions for scopes 1, 2, and 3 using internationally recognized methodologies.
  • Automate data collection and classification through integrations with ERP systems and other data sources.
  • Generate customized, auditable reports that meet ESRS and other reporting standard requirements.
  • Access a network of sustainability experts for personalized advice and external verification support.

With Manglai as your partner, you can transform ESRS compliance into a strategic advantage, driving innovation, efficiency, and long-term value creation.


Andrés Cester

Andrés Cester

CEO & Co-Founder

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