ESRS Standard
ESRS Standard
Obligation to disclose information flows and treatment of sustainability aspects
The company must disclose how the Administrative, management and supervisory bodies are informed about sustainability aspects and how these aspects were dealt with during the reporting period.
Aim of the disclosure requirement
The aim of this disclosure requirement is to provide an understanding of how Administrative, management and supervisory bodies are informed about sustainability aspects and which information and topics they dealt with during the reporting period. This is intended to show whether the members of these bodies were adequately informed and whether they were able to fulfill their duties.
Detailed disclosures
The company discloses the following information:
(a) Whether, by whom and how often the Administrative, management and supervisory bodies, including their respective committees, are informed about the following:
Material impacts, risks and opportunities (see disclosure requirement IRO-1 - Description of procedures for identifying and assessing material impacts, risks and opportunities of this standard),
The implementation of due diligence in the area of sustainability,
The results and effectiveness of the adopted Policies, Actions, Metrics and Targets.
b) How the Administrative, management and supervisory bodies consider Impacts, Risks and Opportunities in overseeing the organization's strategy, its decisions on significant transactions and its risk management process, including whether they have considered trade-offs related to these Impacts, Risks and Opportunities.
c) A list of the material impacts, risks and opportunities addressed by the Administrative, management and supervisory bodies or their relevant committees during the reporting period.
Application Requirements (AR)
Application Requirements (AR)
AR 6 Depending on the structure of the company, the Administrative, management and supervisory bodies may focus on higher-level Targets, while management focuses on the more detailed Targets. In this case, the entity may specify how the governance bodies ensure that an appropriate mechanism for monitoring performance is in place.
Examples from past practice
Examples from past practice
Examples are provided merely as an indication of how a disclosure requirement has been reported by other companies to date. Audited ESRS reports are not yet available. There is no guarantee of accuracy and completeness.
GOV-2 - Sustainability governance and information flows
Sustainability is a central component of corporate strategy and a driver of long-term success and innovation. A company-wide ESG Committee has been set up to effectively manage the sustainability agenda. This committee ensures cross-functional coordination and accelerates the implementation of sustainability goals.
Governance structure and information flows
The ESG Committee is made up of members of the Management Board and managers from relevant divisions. It meets quarterly to discuss the following topics:
Development and implementation of a clear ESG strategy and vision
Review of sustainability goals and actions
Evaluating the effectiveness of the management approach to sustainability aspects, including Material risks and Opportunities
Making long-term strategic decisions
The Corporate Sustainability department plays a key role in this and works closely with various functions. This ensures that sustainability aspects are integrated into business processes and that stakeholder expectations are met.
Monitoring by supervisory bodies
To take account of the growing importance of ESG issues, the Supervisory Board set up an ESG Committee during the reporting period. This committee supports the Management Board and other committees, such as the Audit Committee and Strategy Committee, in the following areas:
Monitoring non-financial reporting
Consideration of strategic ESG issues in decision-making processes
Review of material impacts, risks and opportunities
The Supervisory Board was informed of the results of the double materiality analysis in the first half of the reporting period. This analysis identified the material impacts, risks and opportunities that will serve as the basis for strategic decisions in the future. The complete list of material topics and their impact on the corporate strategy can be found in chapter SBM-3.
The ESG Committee met for the first time in the reporting year. Semi-annual meetings are planned for the future to monitor progress in the area of sustainability and ensure that the company achieves its ESG Targets and complies with regulatory requirements.
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