ESRS

ESRS (European Sustainability Reporting Standards) are the detailed technical standards that specify what must be disclosed under CSRD. They were developed by EFRAG (European Financial Reporting Advisory Group) and adopted by the European Commission.

ESRS Standards Relevant for Indian Manufacturers

ESRS E1 — Climate Change: Requires disclosure of Scope 1, 2, and 3 GHG emissions, energy mix, transition plans, and physical and transition risk assessment. The most immediately relevant standard for manufacturers. ESRS E1 is the standard driving EU buyer supply chain emissions questionnaires.

ESRS E3 — Water and Marine Resources: Water consumption, withdrawal, discharge, and water stress area exposure. Relevant for textile manufacturers — particularly those in water-stressed regions (Tiruppur, Punjab) with high process water use in dyeing and finishing.

ESRS S2 — Workers in the Value Chain: Social standards for supply chain workers. Relevant for manufacturers as part of the social module of buyer assessments.

What ESRS Looks Like in Practice

When an EU buyer’s ESG questionnaire arrives with detailed emissions questions — specific GWP values requested, gas-by-gas breakdown, intensity per unit — it is almost always ESRS E1 driving the specific data requirements, whether or not the questionnaire mentions ESRS by name.

Indian manufacturers who understand ESRS E1 structure can anticipate exactly what their buyers need before each questionnaire cycle, rather than responding reactively after each request arrives.

ESRS and Materiality

CSRD and ESRS require a Double Materiality Assessment (DMA) to determine which standards must be reported. For most large EU manufacturers and retailers, climate (E1) will be material from both financial and impact perspectives — making ESRS E1 supplier data a near-universal requirement.