Sustainability reporting in accordance with ESRS: What is important for banks in the second reporting year

The introduction of the Corporate Sustainability Reporting Directive (CSRD) and the European Sustainability Reporting Standards (ESRS) has set a new benchmark for sustainability reporting in Europe. For the financial year 2024, numerous banks have reported in accordance with these standards for the first time - with some considerable differences in scope, data quality and methodological implementation. Recommendations for the current second reporting year can be derived from this.

Our publication „Sustainability Reporting according to ESRS: What is important for banks in the second reporting year“ shows where banks currently stand – and where they should start in order to strategically develop their current reporting further.

Focal points of the issue:

Scope and structure of reports

Banks with extensive reporting should consider whether the report can be shortened. This makes it easier to emphasise key messages and communicate the market position more clearly. Graphics and tables increase readability and should be used in a targeted manner.
Materiality analysis

The revised ESRS Exposure Drafts also bring innovations in terms of materiality analysis, such as the introduction of a top-down approach to identify material topics. For banks, this offers an opportunity to directly take up impulses for the regulatory process of materiality analysis.
Data availability of financed emissions

With financed emissions as a central environmental KPI for banks, the data quality is still very heterogeneous and the proportion of primary data varies greatly from less than one per cent to over 25 per cent. For greater transparency and controllability, banks should systematically increase the proportion of primary data and use external and internal sources, among other things.
Climate transition plans

Transition plans, both in terms of climate and biodiversity, are becoming increasingly relevant and are in high demand from stakeholders. Early engagement with content and presentation is recommended.
CSRD maturity level

Many banks are still at the beginning, while at the same time the regulatory dynamics require ongoing adjustments. Efficient processes and digital tools help to reduce the operational burden