Value Chain Implementation Guidance (MAIG)

December 22, 2023 EFRAG (The European Financial Reporting Advisory Group) has issued its draft EFRAG IG2: “Value Chain Implementation Guidance” for stakeholders feedback by 02 February 2024.

The document provides detailed implementation guidance on value chain (VC) for companies under the European Sustainability Reporting Standards (ESRS). It outlines the importance of including material impacts, risks, and opportunities (IROs) related to the upstream and downstream value chain in sustainability statements. The guidance also addresses how to navigate VC under the Corporate Sustainability Reporting Directive (CSRD) and ESRS, detailing the general and detailed requirements for sustainability reporting. It includes a value chain map, frequently asked questions, and explanations on topics like transitional requirements, the LSME cap, and financial assets as business relationships. The guidance aims to support preparers in effectively implementing VC considerations in their sustainability reporting.

To read the document click here.