Which set of standards is referred to as ESRS?

The correct answer identifies the European Sustainability Reporting Standards, which are developed to enhance transparency and consistency in sustainability reporting among companies operating in the European Union. The introduction of these standards aligns with the Corporate Sustainability Reporting Directive (CSRD), which mandates that large companies disclose their impact on environmental and social factors.

By standardizing how businesses report on sustainability metrics, the ESRS aims to provide stakeholders with comparable and reliable information, which in turn promotes accountability and informed decision-making. The focus of the ESRS is to ensure that reports reflect the actual sustainability performance of organizations, addressing a critical need for standardized reporting frameworks in the context of growing environmental and social concerns.

This answer is significantly relevant and correct as it encapsulates the essence of what the ESRS represents within the broader scope of sustainability and governance in Europe.