Glossary
Carbon and ESG reporting

What is CSRD and ESRS?

Definition

The Corporate Sustainability Reporting Directive (CSRD) requires in-scope companies to publish sustainability information in their management report; the European Sustainability Reporting Standards (ESRS) define those disclosures, including climate (E1) and water (E3).

Who is in scope after Omnibus I

Directive (EU) 2026/470, the Omnibus I amendment, narrowed the CSRD in February 2026. Per the European Parliament, reporting now applies to EU companies with on average more than 1,000 employees and net annual turnover above EUR 450 million, and to non-EU companies with EU net turnover above EUR 450 million together with their EU subsidiaries and branches above EUR 200 million. The first companies reported on financial year 2024, per the European Commission, and the April 2025 stop-the-clock directive postponed the later waves.

What simplified E1 and E3 ask for

The Commission adopted the simplified ESRS by delegated regulation on 3 July 2026. In simplified E1, disclosure E1-7 covers energy consumption and mix and E1-8 covers gross Scope 1, 2 and 3 emissions, per EFRAG. Simplified E3 asks for total water consumption, consumption in water-stressed areas, withdrawals, discharges, recycled and reused water, and storage. A topic is reported only where the double materiality assessment finds it material.

Site data behind the E1-7 and E3 lines

The aQ WaterGuard twin separates main supply, floor use, fire system, RO feed and unaccounted loss, and tracks reuse flow and RO recovery, which line up with the E3 withdrawal, consumption and recycling datapoints. aQ EnergySmart splits grid, solar and backup generation for the E1-7 mix. Exports carry the site, period and device behind each figure for the assurance provider; Aqueduct does not prepare or assure the statement.

Questions

CSRD and ESRS: common questions

CSRD is the EU law that decides which companies must publish sustainability statements, and ESRS is the set of standards that decides what those statements contain. Together they put climate, water and other topics into the audited management report. Aqueduct's view is on the CSRD compliance page.

They are no longer required to report under CSRD. Customers, banks and parent groups that remain in scope may still request their energy, emissions and water data, so many smaller companies keep collecting the same metered figures for value chain requests.

Yes. Sustainability statements under CSRD go to an auditor or independent assurance provider, so each figure needs a source that can be traced. Site, period and device detail behind energy and water totals shortens the sampling work an assurer does on the E1 and E3 datapoints.

ESRS is the EU standard set applied under CSRD, while IFRS S2 is the ISSB baseline that individual jurisdictions adopt. Both ask for Scope 1, 2 and 3 emissions, so one well-kept inventory can feed both.

See Aqueduct on your own facility.

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