B1 Fundamentals of ESG Report Preparation under the VS Standard
BP-1 Basis for preparation is a mandatory reporting section in the EFRAG VS standard. It outlines the methodological and organisational framework for compiling a sustainability report, including the reporting period, boundary scope, and data sources for robust ESG reporting.
Objective of B1 in the VS Standard
B1 establishes the fundamental rules for sustainability reporting. It ensures methodological consistency, disclosed assumptions, documented data sources, and explained year-on-year variations. Crucially, it is not just the figure itself that matters, but how it was calculated.
Relevance for Sustainability Reporting
Creditworthiness & Risk Assessment: Financial institutions systematically evaluate ESG risks using transparent and consistent data. A lack of methodological documentation can result in volatile ESG ratings.
Supply Chain Pressure: Businesses subject to the CSRD must assess the data quality of their suppliers. Without a documented methodology, SME data cannot be audited.
Content Requirements of B1
Reporting Period: The financial year of the sustainability report
Address: Corporate address; the headquarters in the case of corporate groups
Scope of Reporting: Description of multiple sites or group companies
Balance Sheet Total: The balance sheet total for the reporting year
Turnover: Corporate revenue, rounded to the nearest Euro
Number of Employees/FTE: Employee headcount in full-time equivalents (FTE)
Software Support
ESG Lift automates the generation of B1 disclosures through structured data queries and standardised, VS-compliant templates, ensuring audit-ready ESG reporting without requiring in-house specialist expertise.