ESRS Standard
ESRS Standard
ESRS 2 - General Disclosures
ESRS 2 - General Disclosures
7. the disclosures required by this section should be read in conjunction with the Strategic Business Model (SBM) disclosures required by ESRS 2 and should be made together with the disclosures required by ESRS 2, except for SBM-3 Material Impacts, Risks and Opportunities and their Interaction with Strategy and Business Model, where the entity has the option to combine the disclosures with the topic-related disclosures.
9. paragraph 48 of ESRS 2 SBM-3 requires the entity to disclose the following:
(a) whether and how the actual and potential impacts on Consumers and/or End-users in accordance with ESRS 2 IRO-1 Description of the processes for identifying and evaluating the Material risks, opportunities and impacts.
i) arise from or are related to the entity's strategy or business model; and
ii) influence and contribute to the alignment of the entity's strategy and business model; andb) the relationship between the Material risks and Opportunities arising from Impacts and Dependencies related to Consumers and/or End-users and its strategy and Business model.
10. in meeting the requirements of paragraph 48, the company shall disclose whether any Consumers and/or End-users that are likely to be affected by the company's material impacts, including impacts related to its own operations and Value chain, including through its products or services and through its Business relationships, are covered by its ESRS 2 disclosures. In addition, the company discloses the following information:
(a) a brief description of the types of Consumers and/or End-users affected by material Impacts of its operations or Value chain and whether the following are involved:
i. Consumers and/or End-users of products that are harmful to humans and/or increase the risk of chronic disease,
ii. Consumers and/or End-users of services that may have a negative impact on their right to privacy, protection of their personal data, freedom of expression and non-discrimination,
iii. Consumers and/or End-users who rely on accurate and accessible product or service-related information, such as manuals and product labels, to avoid potentially harmful use of a product or service,
iv. Consumers and/or End-users who are particularly vulnerable to health or privacy impacts or impacts of marketing and sales strategies, such as children or financially vulnerable persons.
b) In the case of significant negative impacts, whether they are
i) related to the sale or provision of the company's products and services are widespread or systemic (e.g., government surveillance affecting the privacy of Users of services), or whether they are
ii) are related to individual Incidents (e.g., a defect related to a specific product) or to specific Business relationships (e.g., a business partner uses marketing methods that inappropriately target young Consumers ),c) in the case of significant positive impacts, a brief description of the activities that lead to the positive impacts (e.g. product design that improves accessibility for Persons with disabilities) and the types of Consumers and/or End-users that are or could be positively affected, the company may also indicate whether the positive impacts occur in specific countries or regions, and
d) any material risks and opportunities for the company arising from Impacts and Dependencies related to Consumers and/or End-users.
11. in describing the main types of Consumers and/or End-users that are or may be affected by adverse impacts, the company indicates, based on the materiality analysisin accordance with ESRS 2 IRO-1, whether and how it has developed an understanding of how Consumers and/or End-users with particular characteristics or individuals who use particular products or services may be at greater risk of harm.
12. the company indicates which of its material risks and opportunities arising from impacts and Dependencies related to Consumers and/or End-users are impacts on specific groups of Consumers and/or End-users (e.g. specific age groups) rather than impacts on all Consumers and/or End-users.
Application Requirements (AR)
Application Requirements (AR)
AR 5 Impacts on Consumers and/or End-users may stem from the organization's strategy or business model in various ways. For example, impacts may relate to the company's value proposition (e.g., providing online platforms with potential for online and offline harm), its Value chain ( e.g., speed in developing products or services or in delivering projects with health and safety risks), or its cost structure and revenue model (e.g., sales-maximizing incentives that put Consumers at risk).
AR 6. Impacts on Consumers and/or End-users that are attributable to the strategy or business model may also pose Material risks to the company. For example, if the company's business model relies on incentivizing its employees to sell high volumes of a product or service (e.g., credit cards or pain medication) quickly and this results in great harm to Consumers, the company may face lawsuits and reputational harm that affect its future operations and credibility.
AR 7. examples of particular characteristics of Consumers and/or End-users that the company may take into account in the disclosures referred to in paragraph 11 include young Consumers and/or End-users who are more vulnerable to Impacts on their physical and mental development or who lack financial literacy and may be more vulnerable to exploitative sales or marketing practices. This may include women in a context where women are routinely discriminated against in access to certain services or in the marketing of certain products.
AR 8. in relation to paragraph 12, Risks could also arise due to the company's dependence on Consumers and/or End-users where events with a low probability of occurrence but with significant consequences may haveFinancial effects , e.g. if a global pandemic has severe Impacts on the livelihoods of certain Consumers, leading to significant changes in consumption patterns.
Examples from previous practice
Examples from previous practice
Examples serve only as an indication of how a disclosure obligation has been stated by other companies to date. Audited ESRS reports are not yet available. There is no guarantee of accuracy and completeness.
S4.SBM-3 - Product Safety for Consumers and End-users
We are committed to ensuring that our products not only meet all applicable safety requirements and legal regulations, but also exceed them wherever possible. Through comprehensive internal guidelines and regular inspections, we ensure compliance with the highest standards in all areas.
Our specialist departments work to ensure that the materials we produce comply with legal, normative and safety requirements. Particular attention is paid to ensuring that they are safe for their intended applications.
Although we carry out extensive product safety tests, the ultimate responsibility for the health safety of the end products lies with the manufacturers who process our materials and produce finished consumer goods from them.
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