ESRS Standard
ESRS Standard
The term"Policy" is synonymous with the term"Policy", which is used in the German version of the ESRS Standard.
46 The company must disclose its material impacts, risks and opportunities and explain how they interact with its strategy and business model.
47. the objective of this disclosure requirement is to provide an understanding of the material impacts, risks and opportunities arising from the entity's materiality analysis and how they are driven by and align with the entity's strategy and business model, including the allocation of resources. The information to be disclosed about the entity's management of Material Impacts, Risks and Opportunities is prescribed in topic-specific ESRSs and in sector-specific standards to be applied in conjunction with the Minimum Disclosure Requirements on Policies, Actions and Targets set out in this Standard.
48 The entity shall disclose the following:
(a) A brief explanation of its material impacts, risks and opportunities arising from its materiality analysis (see disclosure requirement IRO-1 of this standard), including a description of where in its Business model, its own operations and its upstream and downstream Value chain these material impacts, risks and opportunities are concentrated.
b) The current and expected impact of its Material Impacts, Risks and Opportunities on its business model, Value chain, strategy and decision-making, and how it has responded or intends to respond to that impact, including any changes it has made or intends to make to its strategy or business model as part of its actions to manage particular Material Impacts or Risks or to take advantage of particular Material Opportunities.
c) In relation to the company's Impact materiality:
i. How the company's material negative and positive impacts affect people or the environment (or in the case of potential impacts, how they are likely to affect them),
ii. Whether and how the impacts arise from or are related to the company's strategy and business model,
iii. What time horizons for the Impacts can reasonably be expected, and
iv. Whether the company has a stake in the material impacts through its activities or because of its business relationships, with a description of the nature of the activities or business relationships concerned.
d) The current financial effects of the entity's principal risks and opportunities on its financial position, financial performance and cash flows, and the principal risks and opportunities that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities recognized in the related financial statements in the next reporting period.
e) The short, medium and long-term expected financial effects of the company's material risks and opportunities on its financial position, results of operations and cash flows, including the reasonably expected time horizons for these effects. This includes how the company's financial position, results of operations and cash flows are expected to change in the short, medium and long term given its strategy for managing Risks and Opportunities, taking into account the following:
i. Its investment and divestment plans (e.g. capital expenditure, major acquisitions and disposals, joint ventures, business transformations, innovation, new businesses and asset disposals), including those plans where the company has no contractual obligation; and
ii. The sources of funding envisaged for the implementation of its strategy.
f) Information on the resilience of the company's strategy and business model in relation to its ability to manage its material impacts and risks and to capitalize on its material opportunities. The entity shall disclose a qualitative and, where appropriate, a quantitative analysis of resilience, including how the analysis was conducted and the time horizons set in accordance with ESRS 1 (see ESRS 1 Chapter 6 Time Horizons). When providing quantitative information, the entity may disclose individual amounts or ranges.
g) Changes in material impacts, risks and opportunities compared with the previous reporting period.
h) A detailed description of the Impacts, Risks and Opportunities covered by the disclosure requirements of the ESRS, as opposed to the Impacts covered by the entity through additional entity-specific disclosures.
49. the entity may provide the descriptive information required by paragraph 46 in addition to the disclosures within the relevant thematic ESRS, in which case it must still provide a statement of its material impacts, risks and opportunities in addition to its disclosures prepared in accordance with this chapter of ESRS 2.
Application Requirements (AR)
Application Requirements (AR)
AR 17 When explaining where material impacts, risks and opportunities are concentrated in its upstream and/or downstream Value chain, the entity shall consider the following: geographical areas, facilities or types of assets, inputs, outputs and distribution channels.
AR 18. this disclosure may be expressed as a single impact, risk or opportunity, or by aggregating groups of material impacts, risks and opportunities, if this provides more relevant information and does not obscure material information.
Examples from past practice
Examples from past practice
Examples serve only 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.
SMB-3 - Material Impacts, Risks and Opportunities and their Interaction with Strategy and Business Model
As this report is being prepared for the first time, no information is available on changes to the material impacts, risks and opportunities compared to the previous reporting period.
All reported Impacts, Risks and Opportunities are covered by the ESRS disclosure requirements, as no additional company-specific disclosures are currently included in this report.
The Double materiality analysis carried out has shown that there are no identifiable material Impacts, Risks and Opportunities that affect the Business model, Value chain, strategy or decision-making processes. It was therefore not necessary to adjust the corporate strategy or the business model.
In the coming reporting period, the ESG team and responsible specialist departments will review the resilience of the corporate strategy and business model with regard to their ability to manage material Impacts and Risks.
The following table provides an overview of all material impacts, including their nature, position in the Value chain and time horizon. Details of the individual impacts are disclosed together with the other disclosures required by the respective thematic standards.
This article has been machine translated. In case of errors, please contact [email protected].