ESRS 2 General Disclosures

ESRS 2 extends the ambit of sustainability reporting, presenting cross-cutting requirements applicable to all companies, irrespective of their sector. ESRS 2 aims to promote consistency and comparability in sustainability reporting by outlining specific disclosure obligations.

Let’s unpack the key elements of ESRS 2:

• Impact, Risk, and Opportunity Management (IRO): ESRS 2 delves into the processes involved in identifying, assessing, and managing impacts, risks, and opportunities, paving the way for robust sustainability management practices.
• Governance (GOV): From outlining the role of administrative bodies to integrating sustainability performance into incentive schemes, ESRS 2 sheds light on governance processes essential for effective sustainability oversight.
• Strategy (SBM): ESRS 2 elucidates how businesses can align their strategies with material sustainability concerns, fostering coherence between corporate objectives and societal expectations.
• Metrics and Targets (MT): By delineating metrics and targets for tracking sustainability performance, ESRS 2 empowers companies to gauge their progress and demonstrate their commitment to sustainability.

ESRS 2 includes:

– Minimum Disclosure Requirements regarding policies (MDR-P) and actions (MDR-A)

– Minimum Disclosure Requirements regarding metrics (MDR-M) and targets (MDR-T).

The undertaking shall apply the minimum disclosure requirements regarding policies, actions, metrics and targets together with the corresponding Disclosure Requirements in topical and sector-specific ESRS.