ESRS Standard
ESRS Standard
42 The entity shall disclose its expected financial effects of material risks and opportunities related to biodiversity and ecosystems.
43 The information required by paragraph 42 supplements the disclosures required by ESRS 2 SBM-3 paragraph 48(d) about the current financial effects on the entity's financial position, financial performance and cash flows for the reporting period.
44. the objective of this disclosure requirement is to provide an understanding of the following:
(a) with respect to Anticipated financial effects from material risks due to Impacts and Dependencies related to biodiversity and ecosystems, an understanding of how those risks have (or are likely to have) a material effect on the entity's financial position, financial performance and cash flows in the short, medium and long term; and
b) Anticipated financial effects from material opportunities related to biodiversity and ecosystems.
45 The disclosures include the following:
(a) A quantification of the Anticipated financial effects in monetary terms before considering Actions related to biodiversity and ecosystems or, if this is not possible without undue cost or effort, qualitative information. Quantification of the financial effects arising from Material opportunities is not required if such information does not meet the qualitative characteristics of information (as defined in Installation B Qualitative characteristics of information of ESRS 1). The quantification of the Anticipated financial effects in monetary terms may be disclosed in the form of a single amount or a range,
b) a description of the financial effects considered, the related impacts and dependencies, and the time horizons within which they are likely to occur; and
c) the critical assumptions used to quantify the Anticipated financial effects and the sources and degree of uncertainty of those assumptions.
Application Requirements (AR)
Application Requirements (AR)
AR 39: The entity may provide an assessment of its related short-, medium- and long-term risky products and services, explaining how they are defined, how the financial amounts are estimated and what critical assumptions are used.
AR 40 The quantification of the Anticipated financial effects in monetary terms referred to in paragraph 45(a) may take the form of a single amount or a range.
Examples from past practice
Examples from past practice
Examples serve only as an indication of how a disclosure requirement has been disclosed by other companies to date. Audited ESRS reports are not yet available. There is no guarantee of accuracy and completeness.
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