The ESRS still require double materiality, that has not changed. However, the way the results of the materiality analysis are used in selecting the relevant topical standards for an entity has changed. The prior draft of the ESRS used the so-called rebuttable presumption. This meant that all topical standards (including all disclosure requirements) were applicable for every company unless they could provide evidence that a particular topic was not material for their business. In practice, this meant that for every disclosure requirement, a company needed to explain in their report why it was not relevant to them.
This has been replaced by a different approach, comparable to the one we recognize from other reporting frameworks like the Global Reporting Initiative (GRI). Now, the results of a company’s materiality analysis determine the relevant topics to be included in its report. Companies no longer need to explain why they do not include a specific disclosure requirement. However, if they leave out an entire topic (e.g. ESRS E2 Pollution), they will have to explicitly mention that this topic is not material for their organization.