EFRAG February Online Workshops on IFRS (ESRS) – ES1 Sector Classification

EFRAG will hold a series of online workshops in February 2024 to gather feedback on the current version of the draft European Sustainability Reporting Standard – Sector Classification 1 (ESRS-SEC1), which is expected to be shared for consultation in the coming months.
All interested parties are invited to participate. To participate in the workshops, interested parties must register in advance with the EFRAG Sector Communities and select their sector(s) of interest using this link, unless they are already part of the Sector Communities.

The development of sectoral European Sustainability Reporting Standards (ESRS) is a multi-year effort related to the implementation of the Corporate Sustainability Reporting Directive (CSRD). As part of its mandate given by the European Commission, EFRAG is tasked with developing draft sectoral ESRS. Details of this process can be found on the following website.

The preparation of the draft sectoral NERS requires distinguishing between the different economic activities that fall within specific sectors of the NERS. For this reason, EFRAG is developing its Sector Classification into a specific draft NERS (NERS SEC 1), which will be submitted for consultation in 2024. These NERS identify the perimeter of activities that need to be aggregated in industrial sectors. They also provide guidance for companies to (i) implement the SBM-1 (strategy, business model and value chain) disclosure requirement in the ESRS published as a Delegated Act in July 2023 and (ii) identify the future sector-specific ESRS project that will be relevant to them.

The NERS SEC 1 project is based on the existing NACE Rev. 2-1 classification system (Nomenclature générale des Activités Economiques dans les Communautés Européennes), categorizing NACE business activities by NERS sectors based on common characteristics of sustainability impacts, risks and opportunities.

Stakeholder comments on the draft classification are an integral part of EFRAG’s due process in the development of the ESRS. The EFRAG Secretariat is organising a series of workshops in February before the NERS SEC 1 Exhibition Draft is submitted to the EFRAG SR TEG and the EFRAG SRB for approval in preparation for the consultation. The aim of these workshops is to allow participants to provide feedback on:

 
1. The overall adequacy of the proposed classification (i.e. the proposed grouping of NACE economic activities).
2. The descriptions and definitions of the existing sectors.
3. The proposed divisions into NACE groups and sectors.

The ESRS SEC 1 project is based on the current NACE Rev. 2-1 classification system (Nomenclature générale des Activités Economiques dans les Communautés Européennes), categorizing NACE business activities by ESRS sectors based on the common characteristics of sustainability impacts, risks and opportunities.

Stakeholder comments on the draft classification are an integral part of EFRAG’s due process in the development of the ESRS.
The online workshops will take place on the following days and will be dedicated to the following sectors:

06/02/24 – Agriculture – Food Drink – Forestry – Paper Wood Products – Tobacco (Morning)
06/02/24 – Mining – Oil Gas – Electricity Production Energy Services – Water Waste (afternoon)
08/02/24 – Education – Information Technology – Marketing – Media – Professional Services (Morning)
08/02/24 – Chemicals – Construction Engineering – Building Materials – Construction Furniture – Metal Processing (afternoon)
13/02/24 – Capital Markets – Credit Institutions – Insurance – Real Estate (tomorrow)
13/02/24 – Health – Medical instruments – Pharmaceuticals and biotechnology 13 February 2024 (afternoon)
16/02/24 – Accommodation – Food and beverage services – Gambling – Leisure and free time (morning)
16/02/24 – Defence – Electronics – Machinery and equipment – Motor vehicles (afternoon)
20/02/24 – Other transport – Road transport (morning)
20/02/24 – Sports equipment and toys – Textile (afternoon)
21/02/24 – Sales and trade (tomorrow)

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