ESRS G1 for Manufacturing Companies: 2026 Compliance Guide
- →Manufacturing companies in ESRS G1 scope must report on ESRS modules E1, E2, E5, S1, S2, G1. Average sector readiness is only 34%.
- →Key compliance risks: Scope 3 supply chain emissions and Chemical pollution (E2).
- →CBAM also applies to this sector — embedded carbon reporting required from 2026.
Which ESRS G1 requirements apply to Manufacturing?
Industrial manufacturing companies including automotive, chemicals, machinery and consumer goods.
For ESRS G1 compliance, Manufacturing companies must report on the following ESRS topical standards where material: E1, E2, E5, S1, S2, G1. The double materiality assessment will determine which of these modules require full disclosure.
Average compliance readiness across the Manufacturing sector is currently 34% — significantly below the threshold needed for a clean assurance opinion. Most companies in this sector have work to do before their reporting deadline.
Key ESG risks for Manufacturing companies
ESRS G1 requires Manufacturing companies to disclose impacts, risks and opportunities across all material topics. The most commonly material topics for this sector are:
Scope 3 supply chain emissions
Chemical pollution (E2)
Worker safety (S1)
Manufacturing companies that fail their double materiality assessment risk under-reporting material topics. Auditors pay particular attention to this sector's scope 3 supply chain emissions.
Scope 3 emissions for Manufacturing
Scope 3 emissions are typically the largest part of a Manufacturing company's carbon footprint. The most material Scope 3 categories for this sector are categories 1, 4, 11, 12 under the GHG Protocol.
For ESRS G1 compliance under ESRS E1-5, you must:
1. Screen all 15 Scope 3 categories 2. Report on material categories with documented methodology 3. Set Scope 3 reduction targets for material categories 4. Obtain third-party assurance over your Scope 3 data
ESGMaster automates Scope 3 calculation for Manufacturing companies using DEFRA 2026 emission factors.
Start with a spend-based Scope 3 screening across all 15 categories. This identifies which categories are material without requiring detailed activity data — you can then focus detailed calculation effort where it matters most.
ESRS G1 compliance roadmap for Manufacturing
Phase 1 — Assess (Months 1–3) Determine your ESRS G1 scope status, complete a double materiality assessment, and run a gap analysis against ESRS E1, E2, E5, S1, S2, G1.
Phase 2 — Collect (Months 4–9) Build data collection processes for all material ESRS metrics. For Manufacturing, focus on scope 3 supply chain emissions data first — it is typically the hardest to collect and the most scrutinised by auditors.
Phase 3 — Report (Months 10–12) Draft your ESRS G1 report, engage third-party assurance, implement XBRL tagging, and file with your national authority.
ESGMaster compresses this timeline by automating Phases 1 and 2 — delivering your gap analysis in 8 seconds and your draft report in hours.
ESRS modules for Manufacturing — materiality guide
| ESRS Module | Topic | Typical materiality for Manufacturing | Key data required |
|---|---|---|---|
| E1 | Climate change | High | Scope 1, 2, 3 GHG emissions |
| E2 | Pollution | High | Pollutant emissions, waste |
| E5 | Circular economy | High | Waste generation, circularity |
| S1 | Own workforce | High | Headcount, pay gap, turnover |
| S2 | Value chain workers | High | Supplier audits, child labour |
| G1 | Business conduct | High | Anti-corruption, lobbying |
Frequently asked questions
Does ESRS G1 apply to Manufacturing companies?
Yes, if your Manufacturing company meets the ESRS G1 size thresholds: 1,000+ employees AND €450M+ net turnover (post-Omnibus). Even companies below these thresholds face ESRS G1-equivalent data requests from their large customers.
Which ESRS modules must Manufacturing companies report on?
Based on typical Manufacturing business models, the most commonly material ESRS modules are E1, E2, E5, S1, S2, G1. However, you must conduct your own double materiality assessment — the final list depends on your specific operations and value chain.
What Scope 3 categories matter most for Manufacturing?
The most material Scope 3 categories for Manufacturing companies are categories 1, 4, 11, 12 under the GHG Protocol. Category 1 is typically the largest source of emissions in this sector.
How long does ESRS G1 compliance take for a Manufacturing company?
From zero to first ESRS G1 report typically takes 12–18 months for Manufacturing companies. The biggest time bottlenecks are Scope 3 data collection and third-party assurance provider engagement. ESGMaster reduces the data collection phase to weeks rather than months.
What does ESRS G1 compliance cost for a Manufacturing company?
Consultant-led ESRS G1 compliance for Manufacturing companies typically costs €100,000–€400,000 in year one, depending on complexity and number of subsidiaries. AI-powered platforms like ESGMaster reduce first-year costs by 60–80%.