ESRS Standard
ESRS Standard
ESRS 2 General disclosures
ESRS 2 General disclosures
12 The requirements contained in this section should be read and applied in conjunction with the disclosures required by Chapter 2 Governance, Chapter 3 Strategy and Chapter 4 Management of Impacts, Risks and Opportunities of ESRS 2. The resulting disclosures are presented together with the disclosures required by ESRS 2 in the Sustainability statement, with the exception of ESRS 2 SBM-3 Material Impacts, Risks and Opportunities and their Interaction with Strategy and Business Model, where the entity may, in accordance with ESRS 2 paragraph 49, combine the disclosures with the other disclosures required by this thematic standard.
Disclosure requirements related to ESRS 2 IRO-1 - Description of the process for identifying and assessing the material Climate-related opportunities, risks and impacts
20 The company must describe the process for identifying and assessing Climate-related impacts, Risks and Opportunities. This description shall include its procedures in relation to
a) Climate change impacts, in particular the company's greenhouse gas emissions (in accordance with disclosure requirement ESRS E1-6),
b) Climate-related physical risks( Physical risk from climate change) in its own operations and within the upstream and downstream Value chain, in particular:
i. the identification of climate-related hazards, taking into account at least the climate scenarios with high Emissions; and
ii. an assessment of the extent to which the company's assets and operations may be vulnerable to these climate-related hazards in terms of the generation of gross physical risks,
c) Climate-related transition risks and opportunities in the company's own operations and within the upstream and downstream Value chain, in particular:
i. the identification of climate-related transition events, applying at least one climate scenario that takes into account limiting global warming to 1.5°C with no or limited overshoot; and
ii. an assessment of the extent to which the entity's assets and operations may be exposed to these Climate-related transition risks or opportunities.
21. in providing the information required by paragraph 20(b) and (c), the entity shall explain how it has used Climate-related Scenario analysis, including a range of climate scenarios, to identify and assess short, medium and long-term Physical risks and Transition risks and Opportunities.
Application Requirements (AR)
Application Requirements (AR)
AR 9. in providing information on the processes used to identify and assess climate change impacts in accordance with paragraph 20(a), the company shall explain how it has
a) reviewed its activities and plans to identify actual and potential future sources of greenhouse gas emissions and, where applicable, sources of other climate-related impacts (e.g. emissions of black carbon or tropospheric ozone or land use change) from its own operations and along the Value chain; and
b) has assessed its actual and potential impacts on climate change (i.e. its total greenhouse gas emissions).
AR 10. the company may combine the information reported in accordance with paragraph 20(a) and section AR 9 with the information reported under the following disclosure requirements: paragraph 16(d) of the Locked-in GHG emissions disclosure requirement E1-1, disclosure requirement E1-4 and disclosure requirement E1-6.
AR 11. in disclosing the information on the processes used to identify and assess Physical risks in accordance with paragraph 20(b), the company shall explain whether and how
(a) it has identified short-, medium- and long-term climate hazards and assessed whether its assets and operations may be exposed to these hazards
(b) it has defined short, medium and long-term time horizons and explained how these definitions relate to the expected life of its assets, its strategic planning horizons and capital allocation plans
(c) it has assessed the extent to which its assets and operations may be vulnerable to the identified climate hazards, taking into account the likelihood, magnitude and duration of the hazards and the geographical coordinates (such as the common classification of territorial units for statistics - NUTS for the territory of the EU) and the specific site of the company and its supply chains; and
d) the identification of climate hazards and the assessment of exposure and vulnerability are based on climate scenarios with high emissions, e.g. based on SSP5-8.5 of the IPCC, relevant regional climate projections based on these emission scenarios or climate scenarios of the NGFS (Network for Greening the Financial System) with high physical risk such as the "Hot house world" or "Too little, too late" scenarios. For the general requirements for climate-related Scenario analysis, see paragraphs 18 and 19 and sections AR 13 to AR 15.
The classification of climate hazards can be found in a separate tab below.
AR 12 When disclosing information on the processes used to identify Transition risks and Opportunities in accordance with paragraph 20(c), the entity shall explain whether and how
a) it has identified short, medium and long-term transition events (see example table below) and considered whether its assets and operations may be exposed to these events. In the case of Transition risks and Opportunities, a period considered as long-term may extend over more than ten years and be aligned with Climate-related policy Targets,
b) it has assessed the extent to which its assets and operations may be exposed and vulnerable to the identified transition events, taking into account the likelihood, magnitude and duration of the transition events,
c) it has used climate-related Scenario analyses for the identification of transition events and the assessment of exposure, taking into account at least one scenario that is consistent with the Paris Agreement and limits global warming to 1.5 °C, for example based on scenarios of the International Energy Agency (net zero emissions by 2050, sustainable development scenario, etc.) or climate scenarios of the NGFS (Network for Greening the Financial System). For the general requirements for climate-related Scenario analysis, see paragraphs 18 and 19 and sections AR 13 and AR 15, and
d) it has identified assets and business activities that are not compatible with the transition to a climate-neutral economy or require significant efforts to be compatible with the transition to a climate-neutral economy (e.g. due to significant amounts of Locked-in GHG emissions or incompatibility with the taxonomy compliance requirements under Commission Delegated Regulation (EU) 2021/2139).
Examples of climate-related transition events (based on the TCFD classification)
Policy and law:
Higher pricing of greenhouse gas emissions
Increased emissions reporting obligations
Mandates and regulation in relation to existing products and services
Mandates and regulation in relation to existing production processes
Risk of litigation
Technology:
Replacement of existing products and services with lower-emission options
Unsuccessful investments in new technologies
Costs of the transition to lower-emission technologies
Market:
Change in consumer behavior
Uncertainty regarding market signals
Increased raw material costs
Reputation:
Changes in consumer preferences
Stigmatization of the sector
Increasing concern among stakeholders
Negative feedback from stakeholders
Climate-related Scenario analysis
AR 13 When disclosing the information required by paragraphs 19, 20 and 21 and sections AR 10 and AR 11, the entity explains how it has used a Climate-related opportunity analysis appropriate to its circumstances to identify and assess short, medium and long-term Physical risks, Transition risks and Opportunities, including:
(a) which Scenarios were used and their sources and how they were adjusted to reflect the current state of science,
b) descriptions, time horizons and end points used and a discussion of why the company believes that the plausible Risks and uncertainties are covered by the range of Scenarios used,
c) the key drivers considered in each Scenario and why these are relevant to the company, e.g. policy assumptions, macroeconomic trends, energy consumption and mix, and technology assumptions; and
d) key data inputs and limitations of the Scenarios, including their level of detail (e.g., whether the analysis of physical risks from climate change is based on site-specific geographic coordinates or on more general national or regional data).
AR 14. In conducting the scenario analysis, the company may consider the following guidance: the TCFD Technical Supplement entitled "The Use of Scenario Analysis in Disclosure of Climate-related Risks and Opportunities" (2017), the TCFD guidance entitled "Guidance on Scenario Analysis for Non-Financial Companies" (2020), ISO 14091:2021 "Climate change adaptation - Vulnerability, Impacts and Risk Assessment", other recognized industry standards such as the NGFS (Network for Greening the Financial System) and EU-wide, national, regional and local regulations.
AR 15 The company briefly explains the extent to which the climate scenarios used are compatible with the critical climate-related assumptions in the financial statements.
Classification of climate-related risks
Classification of climate-related risks
(Source: Commission Delegated Regulation (EU) 2021/2139)
1. chronic hazards:
Temperature:
Temperature change (air, Freshwater, seawater)
Heat stress
Temperature variability
Permafrost thawing
Wind:
Change in wind conditions
Water:
Change in precipitation patterns and types (rain, hail, snow/ice)
Variability of precipitation or hydrology
Acidification of the oceans
Saltwater intrusion
Sea level rise
Water scarcity
Solids:
Coastal erosion
Soil degradation
Soil erosion
Solifluction
2. acute hazards:
Temperature:
Heat wave
Cold spell/frost
Forest and wildfires
Wind:
Cyclone, hurricane, typhoon
Storm (including snow, dust and sand storms)
Tornado
Water:
Drought
Heavy precipitation (rain, hail, snow/ice)
Floods (coastal floods, river floods, pluvial floods, base floods)
Overflow of glacial lakes
Solids:
Avalanche
Landslide
Ground subsidence
Examples from previous practice
Examples from previous practice
Examples serve only as an indication of how a disclosure requirement has been stated by other companies to date. Audited ESRS reports are not yet available. There is no guarantee for correctness and completeness.
E1.IRO-1 Climate-related impacts, risks and opportunities
We have systematically analyzed and considered Climate-related impacts, Risks and Opportunities as part of our double materiality assessment.
In the reporting year, we carried out a comprehensive climate scenario analysis based on the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD). The aim of this analysis was to identify Climate-related opportunities and risks and to strengthen the resilience of our corporate strategy. To this end, we organized workshops with managers to systematically record relevant Risks and Opportunities. In addition, both top-down and outside-in analyses were carried out to shed light on industry-specific influences in the transport sector. Financial materiality was taken into account in close coordination with our CFO. For the analysis, we drew on current climate scenarios developed by leading organizations such as the International Energy Agency (IEA).
We also integrated relevant findings from research in the transport and logistics industry.
Our analysis covered the entire Value chain, including the activities of upstream Suppliers, our own operations and our customers' downstream processes. The implementation was supported by a specialized consulting firm. The insights gained were directly incorporated into the improvement of our strategic direction and strengthen our resilience to climate-related challenges.
The assumptions and results used for the Scenario analysis are consistent with the climate-related fundamentals taken into account in our financial reports.
This article has been machine translated. In case of errors, please contact [email protected].