ESRS Standard
ESRS Standard
44. The objective of this GDR is to enable an understanding of the undertaking's key actions, taken or planned, to manage its material impacts, risks and opportunities, and where applicable, to achieve the objectives of related policies.
45. When the undertaking implements key actions to manage material impacts, risks and opportunities, it shall disclose:
(a) a description of the key actions taken in the reporting year and those planned for the future, including their timeframe;
(b) a description of the scope of the key actions; and
(c) the expected outcomes of the key actions and, where applicable, how their implementation contributes to achieving the related policy objectives.
46. Where significant financial resources (operational or capital expenditure) have been or are expected to be allocated to the implementation of the key actions, the undertaking shall:
(a) describe the type of current and future significant financial resources allocated to the key actions, and whether the ability to implement these key actions depends on specific preconditions (e.g., granting of financial support or public policy and market developments);
(b) disclose the amount of significant financial resources allocated to the key actions in the reporting period (if any), and indicate the corresponding line items or notes where they are included in the financial statements; and
(c) provide an indicative range of future financial resources expected to be allocated for the implementation of the key actions.
Application Requirements (AR)
Application Requirements (AR)
AR 35 for para. 45
Key actions in the context of this DR are those actions that play a significant role in managing the undertaking’s material impacts, risks and opportunities including actions taken to support the provision of remedy.
Key actions include actions that are part of the undertaking’s business practices, sustainability due diligence and overall business and risk management.
Key actions may have been initiated in prior reporting periods and continue to be implemented or produce effects in the current reporting period. For the sake of understandability, key actions may be aggregated if applicable. Conversely, if key actions cover more than one material impact, risk or opportunity, this can be indicated and cross-referenced if necessary.
AR 36 for para. 45
Actions may be undertaken individually or in collaboration with other undertakings, especially if actual impacts or potential impacts are systemic or widespread in nature and cannot be addressed by the undertaking alone.
Users may find it useful to know whether a key action is collaborative.
AR 37 for para. 45
Key environmental actions may be classified in accordance with the mitigation hierarchy (i.e. avoidance, minimisation, restoration and compensation).
AR 38 for para. 45(a)
The scope of key actions refers to their coverage in terms of activities within the undertaking’s own operations, its upstream and downstream value chain, subsidiaries, geographies, and if defined, the affected stakeholder groups. The timeframe refers to the time horizons over which the undertaking intends to complete each action.
AR 39 for para. 46
The undertaking may present the information on resource allocation in the form of a table broken down between (i) capital expenditure and operating expenditure, and between (ii) resources applied in the current reporting year and the planned allocation of resources over specific time horizons.
AR 40 for para. 46(b) and (c)
If the undertaking has allocated significant non-financial resources (e.g. full-time equivalent resources), the information about those resources may be presented as non-monetary quantities.
AR 41 for para. 46(b) and (c)
When preparing disclosures on significant financial resources that have been or are expected to be allocated to the implementation of key actions, the undertaking may limit the disclosure to
(a) its approved and announced key actions and action plans; and
(b) its planned sources of funding for implementing these key actions.
This article has been machine translated. In case of errors, please contact [email protected].