CSRD is an EU legal reporting regime that uses ESRS for sustainability statements. are sustainability disclosure standards, effective for annual periods beginning on or after 1 January 2024, that a jurisdiction may adopt or a company may apply voluntarily. IFRS S1 covers sustainability-related risks and opportunities that could reasonably affect the entity's prospects; IFRS S2 applies that investor-focused approach to climate-related risks and opportunities. ESRS uses , so an impact on people or the environment can make a matter reportable even when it is not financially material. ESRS and ISSB standards share substantial disclosure architecture, especially for climate, but differ in legal trigger, users, materiality, scope, assurance, and reporting format.
Comparison matrix
CSRD and ESRS vs IFRS S1 and S2
These rows focus on the practical differences that matter when a company needs to apply ESRS, IFRS S1 and S2, or both.
CSRD amends EU company reporting law; ESRS define the sustainability information in the management report for in-scope companies.
Second framework
IFRS S1 and S2
IFRS S1 and S2 are standards for sustainability-related financial disclosures, with S1 covering general requirements and S2 covering climate-related disclosures.
CSRD is EU legislation. For financial years starting on or after 1 January 2027, Directive (EU) 2026/470 limits the main individual and group scope to undertakings exceeding both EUR 450 million net turnover and 1,000 average employees, subject to separate issuer, exemption, sector, national, and third-country rules.
Binding source for the amended CSRD thresholds and financial-year application rules.
IFRS S1 and S2 are IFRS Sustainability Disclosure Standards developed by the . Both are effective for annual periods beginning on or after 1 January 2024, but that effective date does not itself make them mandatory: jurisdictional adoption or a voluntary application decision controls.
Official IFRS Foundation source for IFRS S2's climate focus and 1 January 2024 effective date.
Do not treat alignment as a substitute for CSRD scoping. Document the EU scope conclusion and the legal or voluntary basis for applying IFRS S1/S2 before mapping reusable disclosures.
ESRS sustainability statements are prepared for users named in ESRS, including investors and other users such as business partners, trade unions, civil society, governments, analysts, and academics.
Defines users of sustainability statements and the sustainability statement structure under ESRS.
users of sustainability statements
IFRS S1 and S2 provide information to users of general purpose financial reports who decide whether to provide resources to the entity, including investors, lenders, and other creditors.
Describes ISSB Standards as sustainability disclosure standards for decision-useful information.
decision-useful data
Start from the CSRD reporting entity and ESRS sustainability statement, then identify which disclosures serve the investor-focused audience without dropping ESRS users or topics.
ESRS uses . A sustainability matter is material when it meets impact materiality, financial materiality, or both; ESRS 2 general disclosures remain required irrespective of topic materiality.
Explains that ESRS 2 is mandatory and that materiality-assessed disclosures are not voluntary.
ESRS 2 is mandatory
IFRS S1 requires material information about sustainability-related risks and opportunities that could reasonably be expected to affect cash flows, access to finance, or cost of capital over the short, medium, or long term. IFRS S2 applies that lens to climate.
Official source for IFRS S1's investor-focused materiality boundary and entity-prospects test.
An materiality assessment cannot replace ESRS . Reuse financial risk and opportunity analysis, but keep separate ESRS impact-materiality evidence and topic-omission reasoning.
The ESRS currently in force under Delegated Regulation (EU) 2023/2772 include cross-cutting and topical standards. ESRS 2 structures disclosures around governance, strategy, impact, risk and opportunity management, and metrics and targets. Directive (EU) 2026/470 removed the mandate to adopt sector-specific ESRS.
Binding source deleting the Accounting Directive empowerment for sector-specific ESRS.
IFRS S1 sets general sustainability-related financial disclosure requirements across governance, strategy, risk management, and metrics and targets. IFRS S2 adds climate-specific requirements, including physical and transition risks. The interoperability guidance identifies high alignment, especially for climate, but also ESRS-only requirements.
Explains the published ESRS-ISSB guidance and its detailed climate-related analysis.
climate-related disclosures
Build a disclosure crosswalk by requirement, not by theme alone: ESRS 2 and topical ESRS datapoints may be more granular than an IFRS S1/S2 management narrative.
Supports using EFRAG IG 1, IG 2, and IG 3 as implementation aids for evidence structure.
IG 1 to 3
An IFRS S1/S2 evidence file should retain investor-material sustainability risks and opportunities, governance and strategy disclosures, climate assumptions, metrics and targets, and any interoperability mapping to ESRS.
Supports evidence reuse and governance where companies apply both ISSB Standards and ESRS.
collect, govern and control
Use shared data owners for emissions, finance, risk, HR, procurement, and legal evidence, but require each data point to show the disclosure requirement it supports.
ESRS value chain reporting covers activities, resources, and relationships in own operations plus upstream and downstream value chain, including indirect business relationships where relevant to material impacts, risks, and opportunities.
Identifies EFRAG IG 2 as value-chain implementation guidance for ESRS.
EFRAG IG 2: Value Chain
IFRS S1 and S2 also address value-chain information, and EFRAG's value-chain guidance notes alignment with definitions, but ESRS still controls the CSRD sustainability statement.
CSRD adds sustainability reporting assurance into EU audit and company-reporting law. The audit committee may monitor sustainability reporting, electronic reporting, and assurance processes.
States that the materiality assessment process is subject to external assurance under the Accounting Directive.
subject to external assurance
IFRS S1 and S2 do not themselves create an EU assurance mandate. Assurance depends on the jurisdiction, regulator, listing rule, or voluntary assurance engagement.
Supports ISSB/ESRS interoperability without treating IFRS S1/S2 as the EU assurance rule.
apply both sets of standards
For CSRD reporters, design evidence for assurance from the start. IFRS S1/S2 evidence can support assurance, but it does not remove CSRD assurance responsibilities.
ESRS preparers can use the ESRS- interoperability guidance to identify where ESRS disclosures can also satisfy ISSB information needs, especially for climate.
Describes high alignment and detailed analysis of climate-related disclosures.
high level of alignment
Treat interoperability as a crosswalk, not a merger. Reuse source data and controls where the guidance supports it, while keeping separate sign-off for ESRS legal compliance.
Supports using ISSB Standards and ESRS together where both reporting sets are relevant.
ISSB Standards and ESRS
If both apply, start with the ESRS sustainability statement, add an ESRS- crosswalk, and document the few areas where ISSB-aligned reporting needs extra or different wording.
Supports the practical rule that interoperability reduces duplicate work but does not erase separate requirements.
practical support
Scope boundary
CSRD and ESRS
CSRD is EU legislation. For financial years starting on or after 1 January 2027, Directive (EU) 2026/470 limits the main individual and group scope to undertakings exceeding both EUR 450 million net turnover and 1,000 average employees, subject to separate issuer, exemption, sector, national, and third-country rules.
Binding source for the amended CSRD thresholds and financial-year application rules.
IFRS S1 and S2
IFRS S1 and S2 are IFRS Sustainability Disclosure Standards developed by the . Both are effective for annual periods beginning on or after 1 January 2024, but that effective date does not itself make them mandatory: jurisdictional adoption or a voluntary application decision controls.
Official IFRS Foundation source for IFRS S2's climate focus and 1 January 2024 effective date.
Operational implication
Do not treat alignment as a substitute for CSRD scoping. Document the EU scope conclusion and the legal or voluntary basis for applying IFRS S1/S2 before mapping reusable disclosures.
Supports using interoperability guidance to reduce duplication without merging the frameworks.
reduce complexity, fragmentation and duplication
Intended users
CSRD and ESRS
ESRS sustainability statements are prepared for users named in ESRS, including investors and other users such as business partners, trade unions, civil society, governments, analysts, and academics.
Defines users of sustainability statements and the sustainability statement structure under ESRS.
users of sustainability statements
IFRS S1 and S2
IFRS S1 and S2 provide information to users of general purpose financial reports who decide whether to provide resources to the entity, including investors, lenders, and other creditors.
Describes ISSB Standards as sustainability disclosure standards for decision-useful information.
decision-useful data
Operational implication
Start from the CSRD reporting entity and ESRS sustainability statement, then identify which disclosures serve the investor-focused audience without dropping ESRS users or topics.
Grounds the need to preserve ESRS users and sustainability statement context when mapping to ISSB disclosures.
sustainability statement
Materiality test
CSRD and ESRS
ESRS uses . A sustainability matter is material when it meets impact materiality, financial materiality, or both; ESRS 2 general disclosures remain required irrespective of topic materiality.
Explains that ESRS 2 is mandatory and that materiality-assessed disclosures are not voluntary.
ESRS 2 is mandatory
IFRS S1 and S2
IFRS S1 requires material information about sustainability-related risks and opportunities that could reasonably be expected to affect cash flows, access to finance, or cost of capital over the short, medium, or long term. IFRS S2 applies that lens to climate.
Official source for IFRS S1's investor-focused materiality boundary and entity-prospects test.
Operational implication
An materiality assessment cannot replace ESRS . Reuse financial risk and opportunity analysis, but keep separate ESRS impact-materiality evidence and topic-omission reasoning.
EFRAG implementation guidance includes IG 1 on materiality assessment for ESRS preparers.
EFRAG IG 1 Materiality Assessment
Core obligations
CSRD and ESRS
The ESRS currently in force under Delegated Regulation (EU) 2023/2772 include cross-cutting and topical standards. ESRS 2 structures disclosures around governance, strategy, impact, risk and opportunity management, and metrics and targets. Directive (EU) 2026/470 removed the mandate to adopt sector-specific ESRS.
Binding source deleting the Accounting Directive empowerment for sector-specific ESRS.
IFRS S1 and S2
IFRS S1 sets general sustainability-related financial disclosure requirements across governance, strategy, risk management, and metrics and targets. IFRS S2 adds climate-specific requirements, including physical and transition risks. The interoperability guidance identifies high alignment, especially for climate, but also ESRS-only requirements.
Explains the published ESRS-ISSB guidance and its detailed climate-related analysis.
climate-related disclosures
Operational implication
Build a disclosure crosswalk by requirement, not by theme alone: ESRS 2 and topical ESRS datapoints may be more granular than an IFRS S1/S2 management narrative.
Supports using EFRAG IG 1, IG 2, and IG 3 as implementation aids for evidence structure.
IG 1 to 3
IFRS S1 and S2
An IFRS S1/S2 evidence file should retain investor-material sustainability risks and opportunities, governance and strategy disclosures, climate assumptions, metrics and targets, and any interoperability mapping to ESRS.
Supports evidence reuse and governance where companies apply both ISSB Standards and ESRS.
collect, govern and control
Operational implication
Use shared data owners for emissions, finance, risk, HR, procurement, and legal evidence, but require each data point to show the disclosure requirement it supports.
Supports building shared controls while preserving separate disclosure mappings.
creating efficiencies
Value chain coverage
CSRD and ESRS
ESRS value chain reporting covers activities, resources, and relationships in own operations plus upstream and downstream value chain, including indirect business relationships where relevant to material impacts, risks, and opportunities.
Identifies EFRAG IG 2 as value-chain implementation guidance for ESRS.
EFRAG IG 2: Value Chain
IFRS S1 and S2
IFRS S1 and S2 also address value-chain information, and EFRAG's value-chain guidance notes alignment with definitions, but ESRS still controls the CSRD sustainability statement.
Supports using EFRAG value-chain guidance when defining shared value-chain data inputs.
Value Chain
Assurance responsibilities
CSRD and ESRS
CSRD adds sustainability reporting assurance into EU audit and company-reporting law. The audit committee may monitor sustainability reporting, electronic reporting, and assurance processes.
States that the materiality assessment process is subject to external assurance under the Accounting Directive.
subject to external assurance
IFRS S1 and S2
IFRS S1 and S2 do not themselves create an EU assurance mandate. Assurance depends on the jurisdiction, regulator, listing rule, or voluntary assurance engagement.
Supports ISSB/ESRS interoperability without treating IFRS S1/S2 as the EU assurance rule.
apply both sets of standards
Operational implication
For CSRD reporters, design evidence for assurance from the start. IFRS S1/S2 evidence can support assurance, but it does not remove CSRD assurance responsibilities.
EFRAG IG 1 supports documented materiality assessment evidence for management and assurance provider review.
Materiality Assessment
Overlap and reuse
CSRD and ESRS
ESRS preparers can use the ESRS- interoperability guidance to identify where ESRS disclosures can also satisfy ISSB information needs, especially for climate.
Describes high alignment and detailed analysis of climate-related disclosures.
high level of alignment
Operational implication
Treat interoperability as a crosswalk, not a merger. Reuse source data and controls where the guidance supports it, while keeping separate sign-off for ESRS legal compliance.
Supports using ISSB Standards and ESRS together where both reporting sets are relevant.
ISSB Standards and ESRS
Operational implication
If both apply, start with the ESRS sustainability statement, add an ESRS- crosswalk, and document the few areas where ISSB-aligned reporting needs extra or different wording.
EFRAG source for IG 1 materiality, IG 2 value chain, and IG 3 datapoint implementation support.
EFRAG issued the final documents
1
Section 1
Review this comparison before building the reporting workplan
Many climate and governance concepts align, but an ESRS report and an report are not the same filing. Build one source-data model with separate ESRS and ISSB disclosure mappings.
For CSRD, the workplan needs a legal scope conclusion, an ESRS process, a sustainability statement structure, assurance-ready evidence, and a digital reporting plan. For IFRS S1 and S2, the workplan needs financial-materiality disclosures, climate-specific assumptions and metrics, and any jurisdictional or voluntary adoption requirements that make those standards relevant.
Start with entity scope and reporting obligation, not with a generic sustainability framework inventory.
Record why IFRS S1 and S2 apply: a named jurisdictional adoption, listing or regulatory requirement, contractual commitment, or voluntary reporting decision. Their 1 January 2024 effective date does not by itself impose them on every company.
Create a requirement-level crosswalk: ESRS 2, topical ESRS, ESRS datapoints, IFRS S1, and IFRS S2.
Treat climate as the highest-reuse area, but still review ESRS-specific points identified by the interoperability guidance.
Retain evidence for excluded ESRS topics, because ESRS topic omission depends on the documented materiality assessment.
Reassess the crosswalk when the reporting boundary, material risks or impacts, applicable ESRS edition, IFRS requirements, or jurisdictional adoption terms change.
Build one evidence base with separate ESRS and ISSB mappings
Use the comparison to decide where ESRS controls the filing, where IFRS S1 and S2 add investor-disclosure requirements, and where source data can be reused.