ESRS Standard
ESRS Standard
Overarching information for Metrics and Targets
Overarching information for Metrics and Targets
70 This chapter sets out the Minimum Disclosure Requirements to be considered when the company discloses information on its Metrics and Targets related to each Material Sustainability Aspect. They apply together with the disclosure requirements, including the application requirements set out in the relevant topic-related ESRS. They also apply if the company prepares company-specific disclosures.
71 The relevant disclosures shall be provided in addition to the disclosures required by the thematic ESRS.
72 If the company is unable to provide the information on Targets required by the relevant thematic ESRS because it has not set Targets in relation to the relevant sustainability aspect, it shall disclose this and explain why it has not set Targets. The company may indicate a timeframe within which it intends to implement the relevant policies or actions.
78 The company shall comply with the disclosure content requirements in this provision when providing information about the Targets it has set in relation to each Materiality Aspect.
79. the objective of this Minimum Disclosure Requirement is to provide an understanding, in relation to each material sustainability aspect, of the following:
(a) whether and how the company tracks the effectiveness of its actions to address Material Impacts, Risks and Opportunities, including the Metrics used to do so,
b) measurable, time-bound and results-oriented targets that the company sets to achieve the Policy 's objectives defined in terms of expected outcomes for people, the environment or the company in relation to Material Impacts, Risks and Opportunities,
c) the overall progress in achieving the defined Targets over time,
d) if the company has not set measurable, time-bound and results-oriented objectives, whether and how the company tracks the effectiveness of its actions to address the Material Impacts, Risks and Opportunities and measures progress towards achieving the Targets of its Policy; and
e) whether and how Stakeholders have been involved in setting Targets for each Material Aspect of sustainability.
80. the company shall disclose the measurable, results-oriented and time-bound Targets related to Materiality that it has set to assess progress. For each Targets, the disclosure shall include the following information:
(a) a description of the relationship between the Targets and the Policy objectives,
(b) the target level set, including, where appropriate, whether the target is absolute or relative and the unit in which it is measured,
(c) the scope of the Targets, including the activities of the company and/or its upstream and/or downstream Value chain, as appropriate, and the geographical boundaries
(d) the baseline and reference year for measuring progress
(e) the period for which the target applies and, where appropriate, any milestones or interim targets,
(f) the methods and significant assumptions used to set the Targets, including, where appropriate, the Scenario chosen, the data sources, the alignment with national, European or international policy objectives and how the Targets take into account the broader sustainable development context and/or the situation in the location where the Impacts occur,
g) whether the company's Targets related to environmental aspects are based on conclusive scientific evidence,
h) whether and how Stakeholders have been involved in setting the Targets for each Material Aspect of sustainability,
i) any changes to Targets and related Metrics or underlying measurement methods, significant assumptions, limitations, sources and data collection processes that have occurred within the specified time horizon. This includes an explanation of the reasons for these changes and their impacts on comparability (see disclosure requirement BP-2 Disclosures related to specific circumstances of this standard), and
j) performance against stated Targets, including information about how a Target is monitored and reviewed, how Metrics are used and whether progress is consistent with original plans, and an analysis of trends or significant changes in the entity's performance against the Target.
81. if the entity has not established measurable performance-based Targets,
a) state whether it intends to set such targets and the timeframe for doing so, or why the entity does not intend to set such targets,
b) state whether it nevertheless tracks the effectiveness of its policies and actions in relation to Sustainability-related impacts, risks and opportunities and, if so, what procedures it uses to do so,
i. what procedures it uses for this purpose,
ii. the targets set and any qualitative or quantitative indicators used to assess progress, including the reference period from which progress is measured.
Application Requirements (AR)
Application Requirements (AR)
AR 24 When stating targets related to the avoidance or mitigation of environmental impacts, the company prioritizes targets related to the reduction of impacts in absolute terms rather than relative terms. Where Targets relate to the prevention or mitigation of social impacts, they may be specified in terms of impacts on human rights, well-being or positive outcomes for affected stakeholders.
AR 25 Information on progress towards the Targets can be presented in a comprehensive table, including information on baseline and target values, milestones and performance in previous periods.
AR 26 If the entity describes progress towards a Policy's Targets without a measurable objective, it may establish a benchmark against which progress is measured. For example, the company may assess a wage increase of a certain percentage for those below a fair wage threshold; or it may assess the quality of its relationships with local communities based on the proportion of issues raised by communities that have been resolved to their satisfaction. The benchmark and the assessment of progress relate to the Impacts, Risks and Opportunities that underpin the Materiality of the issue addressed in the Policy.
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