ESRS Standard
ESRS Standard
41 The entity shall disclose the expected financial effects of material risks and opportunities arising from impacts related to resource use and the Circular economy.
42 The information required by paragraph 41 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 during the reporting period. Targets of this disclosure requirement are to provide an understanding of the following:
(a) with respect to Anticipated financial effects from material risks due to material impacts and Dependencies related to Resource Use and Circular economy, how these risks have a material effect on the entity's financial position, results of operations and cash flows in the short, medium and long term (or whether such an effect is probable); and
b) Anticipated financial effects due to material opportunities in connection with resource use and the Circular economy.
43 The disclosures include the following:
(a) A quantification of the Anticipated financial effects in monetary terms before considering Actions related to Resource use and Circular economy or, if this is not possible without undue cost or effort, qualitative information. Quantification of the financial effects of 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).
b) A description of the financial effects considered, the related impacts and dependencies, and the time horizons within which they are likely to occur.
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 34 When providing the information in paragraph 42(b), the entity may illustrate and describe how it intends to strengthen value retention.
AR 35 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 36 The quantification of the Anticipated financial effects in monetary terms referred to in paragraph 43(a) may be stated in the form of 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 entities to date. Audited ESRS reports are not yet available. There is no guarantee of accuracy and completeness.
This article has been machine translated. In case of errors, please contact [email protected].