COMMISSION DELEGATED REGULATION (EU) 2023/2772
of 31 July 2023
supplementing Directive 2013/34/EU of the European Parliament and of the Council as regards sustainability reporting standards
(Text with EEA relevance)
Article 1
Subject matter
Article 2
Entry into force and application
ANNEX I
European sustainability reporting standards (ESRS)
ESRS 1 |
General requirements |
ESRS 2 |
General disclosures |
ESRS E1 |
Climate change |
ESRS E2 |
Pollution |
ESRS E3 |
Water and marine resources |
ESRS E4 |
Biodiversity and ecosystems |
ESRS E5 |
Resource use and circular economy |
ESRS S1 |
Own workforce |
ESRS S2 |
Workers in the value chain |
ESRS S3 |
Affected communities |
ESRS S4 |
Consumers and end-users |
ESRS G1 |
Business conduct |
ESRS 1
GENERAL REQUIREMENTS
Objective
1.
Categories of ESRS Standards, reporting areas and drafting conventions
1.1
Categories of ESRS standards
1.2
Reporting areas and minimum content disclosure requirements on policies, actions, targets and metrics
1.3
Drafting conventions
2.
Qualitative characteristics of information
3.
Double materiality as the basis for sustainability disclosures
3.1
Stakeholders and their relevance to the materiality assessment process
3.2
Material matters and materiality of information
3.3
Double materiality
3.4
Impact materiality
3.5
Financial materiality
3.6
Material impacts or risks arising from actions to address sustainability matters
3.7
Level of disaggregation
4.
Due diligence
5.
Value chain
5.1
Reporting undertaking and value chain
5.2
Estimation using sector averages and proxies
6.
Time horizons
6.1
Reporting period
6.2
Linking past, present and future
6.3
Reporting progress against the base year
6.4
Definition of short-, medium- and long-term for reporting purposes
7.
Preparation and presentation of sustainability information
7.1
Presenting comparative information
7.2
Sources of estimation and outcome uncertainty
7.3
Updating disclosures about events after the end of the reporting period
7.4
Changes in preparation or presentation of sustainability information
7.5
Reporting errors in prior periods
7.6
Consolidated reporting and subsidiary exemption
7.7
Classified and sensitive information, and information on intellectual property, know-how or results of innovation
7.8
Reporting on opportunities
8.
Structure of the sustainability statement
8.1
General presentation requirement
8.2
Content and structure of the sustainability statement
9.
Linkages with other parts of corporate reporting and connected information
9.1
Incorporation by reference
9.2
Connected information and connectivity with financial statements
10
Transitional provisions
10.1
Transitional provision related to entity-specific disclosures
10.2
Transitional provision related to chapter 5 Value chain
10.3
Transitional provision related to section 7.1 Presenting comparative information
10.4
Transitional provision: List of Disclosure Requirements that are phased-in
Appendix A
Application Requirements
Entity specific disclosures
Double materiality
Stakeholders and their relevance to the materiality assessment process
Assessment of impact materiality
Characteristics of severity
Impacts connected with the undertaking
Assessment of financial materiality
Sustainability matters to be included in the materiality assessment
Topical ESRS |
Sustainability matters covered in topical ESRS |
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Topic |
Sub-topic |
Sub-sub-topics |
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ESRS E1 |
Climate change |
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ESRS E2 |
Pollution |
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ESRS E3 |
Water and marine resources |
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ESRS E4 |
Biodiversity and ecosystems |
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Examples:
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Examples:
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ESRS E5 |
Circular economy |
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ESRS S1 |
Own workforce |
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ESRS S2 |
Workers in the value chain |
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ESRS S3 |
Affected communities |
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ESRS S4 |
Consumers and end- users |
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ESRS G1 |
Business conduct |
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Estimation using sector averages and proxies
Content and structure of the sustainability statement
Appendix B
Qualitative characteristics of information
Relevance
Faithful representation
Comparability
Verifiability
Understandability
Appendix C
List of phased-in Disclosure Requirements
ESRS |
Disclosure Requirement |
Full name of the Disclosure Requirement |
Phase-in or effective date (including the first year) |
ESRS 2 |
SBM-1 |
Strategy, business model and value chain |
The undertaking shall report the information prescribed by ESRS 2 SBM-1 paragraph 40(b) (breakdown of total revenue by significant ESRS sector) and 40(c) (list of additional significant ESRS sectors) starting from the application date specified in a Commission Delegated Act to be adopted pursuant to article 29b(1) third subparagraph, point (ii), of Directive 2013/34/EU. |
ESRS 2 |
SBM-3 |
Material impacts, risks and opportunities and their interaction with strategy and business model |
The undertaking may omit the information prescribed by ESRS 2 SBM-3 paragraph 48(e) (anticipated financial effects) for the first year of preparation of its sustainability statement. The undertaking may comply with ESRS 2 SBM-3 paragraph 48(e) by reporting only qualitative disclosures for the first 3 years of preparation of its sustainability statement, if it is impracticable to prepare quantitative disclosures. |
ESRS E1 |
E1-6 |
Gross Scopes 1, 2, 3 and Total GHG emissions |
Undertakings or groups not exceeding on their balance sheet dates the average number of 750 employees during the financial year (on a consolidated basis where applicable) may omit the datapoints on scope 3 emissions and total GHG emissions for the first year of preparation of their sustainability statement. |
ESRS E1 |
E1-9 |
Anticipated financial effects from material physical and transition risks and potential climate-related opportunities |
The undertaking may omit the information prescribed by ESRS E1-9 for the first year of preparation of its sustainability statement. The undertaking may comply with ESRS E1-9 by reporting only qualitative disclosures for the first 3 years of preparation of its sustainability statement, if it is impracticable to prepare quantitative disclosures. |
ESRS E2 |
E2-6 |
Anticipated financial effects from pollution-related impacts, risks and opportunities |
The undertaking may omit the information prescribed by ESRS E2-6 for the first year of preparation of its sustainability statement. Except for the information prescribed by paragraph 40 (b) on the operating and capital expenditures occurred in the reporting period in conjunction with major incidents and deposits, the undertaking may comply with ESRS E2-6 by reporting only qualitative disclosures, for the first 3 years of preparation of its sustainability statement. |
ESRS E3 |
E3-5 |
Anticipated financial effects from water and marine resources-related impacts, risks and opportunities |
The undertaking may omit the information prescribed by ESRS E3-5 for the first year of preparation of its sustainability statement.The undertaking may comply with ESRS E3-5 by reporting only qualitative disclosures, for the first 3 years of preparation of its sustainability statement. |
ESRS E4 |
All disclosure requirements |
All disclosure requirements |
Undertakings or groups not exceeding on their balance sheet dates the average number of 750 employees during the financial year (on a consolidated basis where applicable) may omit the information specified in the disclosure requirements of ESRS E4 for the first 2 years of preparation of their sustainability statement. |
ESRS E4 |
E4-6 |
Anticipated financial effects from biodiversity and ecosystem-related impacts, risks and opportunities |
The undertaking may omit the information prescribed by ESRS E4-6 for the first year of preparation of its sustainability statement. The undertaking may comply with ESRS E4-6 by reporting only qualitative disclosures, for the first 3 years of preparation of its sustainability statement. |
ESRS E5 |
E5-6 |
Anticipated financial effects from resource use and circular economy-related impacts, risks and opportunities |
The undertaking may omit the information prescribed by ESRS E5-6 for the first year of preparation of its sustainability statement. The undertaking may comply with ESRS E5-6 by reporting only qualitative disclosures, for the first 3 years of preparation of its sustainability statement. |
ESRS S1 |
All disclosure requirements |
All disclosure requirements |
Undertakings or groups not exceeding on their balance sheet dates the average number of 750 employees during the financial year (on a consolidated basis where applicable) may omit the information specified in the disclosure requirements of ESRS S1 for the first year of preparation of their sustainability statement. |
ESRS S1 |
S1-7 |
Characteristics of non-employee workers in the undertaking’s own workforce |
The undertaking may omit reporting for all datapoints in this Disclosure Requirement for the first year of preparation of its sustainability statement. |
ESRS S1 |
S1-8 |
Collective bargaining coverage and social dialogue |
The undertaking may omit this Disclosure Requirement with regard to its own employees in non-EEA countries for the first year of preparation of its sustainability statement. |
ESRS S1 |
S1-11 |
Social protection |
The undertaking may omit the information prescribed by ESRS S1-11 for the first year of preparation of its sustainability statement. |
ESRS S1 |
S1-12 |
Percentage of employees with disabilities |
The undertaking may omit the information prescribed by ESRS S1-12 for the first year of preparation of its sustainability statement. |
ESRS S1 |
S1-13 |
Training and skills development |
The undertaking may omit the information prescribed by ESRS S1-13 for the first year of preparation of its sustainability statement. |
ESRS S1 |
S1-14 |
Health and safety |
The undertaking may omit the data points on cases of work-related ill-health and on number of days lost to injuries, accidents, fatalities and work-related ill health for the first year of preparation of its sustainability statement. |
ESRS S1 |
S1-14 |
Health and safety |
The undertaking may omit reporting on non-employees for the first year of preparation of its sustainability statement. |
ESRS S1 |
S1-15 |
Work-life balance |
The undertaking may omit the information prescribed by ESRS S1-15 for the first year of preparation of its sustainability statement. |
ESRS S2 |
All disclosure requirements |
All disclosure requirements |
Undertakings or groups not exceeding on their balance sheet dates the average number of 750 employees during the financial year (on a consolidated basis where applicable) may omit the information specified in the disclosure requirements of ESRS S2 for the first 2 years of preparation of their sustainability statement. |
ESRS S3 |
All disclosure requirements |
All disclosure requirements |
Undertakings or groups not exceeding on their balance sheet dates the average number of 750 employees during the financial year (on a consolidated basis where applicable) may omit the information specified in the disclosure requirements of ESRS S3 for the first 2 years of preparation of their sustainability statement. |
ESRS S4 |
All disclosure requirements |
All disclosure requirements |
Undertakings or groups not exceeding on their balance sheet dates the average number of 750 employees during the financial year (on a consolidated basis where applicable) may omit the information specified in the disclosure requirements of ESRS S4 for the first 2 years of preparation of their sustainability statement. |
Appendix D
Structure of the ESRS sustainability statement
Part of the management report |
ESRS codification |
Title |
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ESRS 2 |
General disclosures, including information provided under the Application Requirements of topical ESRS listed in ESRS 2 Appendix C. |
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Not applicable |
Disclosures pursuant to Article 8 of Regulation (EU) 2020/852 (Taxonomy Regulation) |
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ESRS E1 |
Climate change |
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ESRS E2 |
Pollution |
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ESRS E3 |
Water and marine resources |
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ESRS E4 |
Biodiversity and ecosystems |
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ESRS E5 |
Resource use and circular economy |
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ESRS S1 |
Own workforce |
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ESRS S2 |
Workers in the value chain |
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ESRS S3 |
Affected communities |
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ESRS S4 |
Consumers and end-users |
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ESRS G1 |
Business conduct |
Appendix E
Flowchart for determining disclosures under ESRS
Appendix F
Example of structure of ESRS sustainability statement
Appendix G
Example of incorporation by reference
ESRS 2
GENERAL DISCLOSURES
Objective
1.
Basis for preparation
Disclosure Requirement BP-1 – General basis for preparation of the sustainability statement
Disclosure Requirement BP-2 – Disclosures in relation to specific circumstances
Time horizons
Value chain estimation
Sources of estimation and outcome uncertainty
Changes in preparation or presentation of sustainability information
Reporting errors in prior periods
Disclosures stemming from other legislation or generally accepted sustainability reporting pronouncements
Incorporation by reference
Use of phase-In provisions in accordance with Appendix C of ESRS 1
2.
Governance
Disclosure Requirement GOV-1 – The role of the administrative, management and supervisory bodies
Disclosure Requirement GOV-2 – Information provided to and sustainability matters addressed by the undertaking’s administrative, management and supervisory bodies
Disclosure Requirement GOV-3 – Integration of sustainability-related performance in incentive schemes
Disclosure Requirement GOV–4 - Statement on due diligence
Disclosure Requirement GOV–5 - Risk management and internal controls over sustainability reporting
3.
Strategy
Disclosure Requirement SBM-1 – Strategy, business model and value chain
Disclosure Requirement SBM-2 – Interests and views of stakeholders
Disclosure Requirement SBM-3 - Material impacts, risks and opportunities and their interaction with strategy and business model
4.
Impact, risk and opportunity management
4.1
Disclosures on the materiality assessment process
Disclosure Requirement IRO-1 - Description of the process to identify and assess material impacts, risks and opportunities
Disclosure Requirement IRO-2 – Disclosure Requirements in ESRS covered by the undertaking’s sustainability statement
4.2
Minimum disclosure requirements on policies and actions
Minimum Disclosure Requirement – Policies MDR-P – Policies adopted to manage material sustainability matters
Minimum Disclosure Requirement – Actions MDR-A – Actions and resources in relation to material sustainability matters
5.
Metrics and targets
Minimum disclosure requirement – Metrics MDR-M – Metrics in relation to material sustainability matters
Minimum Disclosure Requirement – Targets MDR-T – Tracking effectiveness of policies and actions through targets
Appendix A
Application Requirements
1.
Basis for preparation
Disclosure Requirement BP-1 – General basis for preparation of sustainability statements
Disclosure Requirement BP-2 – Disclosures in relation to specific circumstances
2.
Governance
Disclosure Requirement GOV-1 – The role of the administrative, management and supervisory bodies
Disclosure Requirement GOV-2 – Information provided to and sustainability matters addressed by the undertaking’s administrative, management and supervisory bodies
Disclosure Requirement GOV-3 – Integration of sustainability-related performance in incentive schemes
Disclosure Requirement GOV-4 – Statement on due diligence
CORE ELEMENTS OF DUE DILIGENCE |
PARAGRAPHS IN THE SUSTAINABILITY STATEMENT |
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Disclosure Requirement GOV-5 – Risk management and internal controls over sustainability reporting
3.
Strategy
Disclosure Requirement SBM–1 Strategy, business model and value chain
Disclosure Requirement SBM-2 – Interests and views of stakeholders
Disclosure Requirement SBM-3 – Material impacts, risks and opportunities and their interaction with strategy and business model
4.
Impact, risk and opportunity management
Disclosure Requirement IRO-2 – Disclosure Requirements in ESRS covered by the undertaking’s sustainability statement
Minimum Disclosure Requirement – Policies MDR-P – Policies adopted to manage material sustainability matters
Minimum disclosure requirement – Actions MDR-A – Actions and resources in relation to material sustainability matters
5.
Metrics and targets
Minimum Disclosure Requirement – Targets MDR-T – Tracking effectiveness of policies and actions through targets
Appendix B
List of datapoints in cross-cutting and topical standards that derive from other EU legislation
Disclosure Requirement and related datapoint |
SFDR(23) reference |
Pillar 3(24) reference |
Benchmark Regulation(25) reference |
EU Climate Law(26) reference |
ESRS 2 GOV-1 Board's gender diversity paragraph 21 (d) |
Indicator number 13 of Table #1 of Annex 1 |
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Commission Delegated Regulation (EU) 2020/1816(27), Annex II |
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ESRS 2 GOV-1 Percentage of board members who are independent paragraph 21 (e) |
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Delegated Regulation (EU) 2020/1816, Annex II |
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ESRS 2 GOV-4 Statement on due diligence paragraph 30 |
Indicator number 10 Table #3 of Annex 1 |
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ESRS 2 SBM-1 Involvement in activities related to fossil fuel activities paragraph 40 (d) i |
Indicators number 4 Table #1 of Annex 1 |
Article 449a Regulation (EU) No 575/2013; Commission Implementing Regulation (EU) 2022/2453(28)Table 1: Qualitative information on Environmental risk and Table 2: Qualitative information on Social risk |
Delegated Regulation (EU) 2020/1816, Annex II |
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ESRS 2 SBM-1 Involvement in activities related to chemical production paragraph 40 (d) ii |
Indicator number 9 Table #2 of Annex 1 |
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Delegated Regulation (EU) 2020/1816, Annex II |
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ESRS 2 SBM-1 Involvement in activities related to controversial weapons paragraph 40 (d) iii |
Indicator number 14 Table #1 of Annex 1 |
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Delegated Regulation (EU) 2020/1818(29), Article 12(1) Delegated Regulation (EU) 2020/1816, Annex II |
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ESRS 2 SBM-1 Involvement in activities related to cultivation and production of tobacco paragraph 40 (d) iv |
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Delegated Regulation (EU) 2020/1818, Article 12(1) Delegated Regulation (EU) 2020/1816, Annex II |
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ESRS E1-1 Transition plan to reach climate neutrality by 2050 paragraph 14 |
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Regulation (EU) 2021/1119, Article 2(1) |
ESRS E1-1 Undertakings excluded from Paris-aligned Benchmarks paragraph 16 (g) |
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Article 449a Regulation (EU) No 575/2013; Commission Implementing Regulation (EU) 2022/2453 Template 1: Banking book-Climate Change transition risk: Credit quality of exposures by sector, emissions and residual maturity |
Delegated Regulation (EU) 2020/1818, Article12.1 (d) to (g), and Article 12.2 |
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ESRS E1-4 GHG emission reduction targets paragraph 34 |
Indicator number 4 Table #2 of Annex 1 |
Article 449a Regulation (EU) No 575/2013; Commission Implementing Regulation (EU) 2022/2453 Template 3: Banking book – Climate change transition risk: alignment metrics |
Delegated Regulation (EU) 2020/1818, Article 6 |
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ESRS E1-5 Energy consumption from fossil sources disaggregated by sources (only high climate impact sectors) paragraph 38 |
Indicator number 5 Table #1 and Indicator n. 5 Table #2 of Annex 1 |
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ESRS E1-5 Energy consumption and mix paragraph 37 |
Indicator number 5 Table #1 of Annex 1 |
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ESRS E1-5 Energy intensity associated with activities in high climate impact sectors paragraphs 40 to 43 |
Indicator number 6 Table #1 of Annex 1 |
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ESRS E1-6 Gross Scope 1, 2, 3 and Total GHG emissions paragraph 44 |
Indicators number 1 and 2 Table #1 of Annex 1 |
Article 449a; Regulation (EU) No 575/2013; Commission Implementing Regulation (EU) 2022/2453 Template 1: Banking book – Climate change transition risk: Credit quality of exposures by sector, emissions and residual maturity |
Delegated Regulation (EU) 2020/1818, Article 5(1), 6 and 8(1) |
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ESRS E1-6 Gross GHG emissions intensity paragraphs 53 to 55 |
Indicators number 3 Table #1 of Annex 1 |
Article 449a Regulation (EU) No 575/2013; Commission Implementing Regulation (EU) 2022/2453 Template 3: Banking book – Climate change transition risk: alignment metrics |
Delegated Regulation (EU) 2020/1818, Article 8(1) |
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ESRS E1-7 GHG removals and carbon credits paragraph 56 |
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Regulation (EU) 2021/1119, Article 2(1) |
ESRS E1-9 Exposure of the benchmark portfolio to climate-related physical risks paragraph 66 |
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Delegated Regulation (EU) 2020/1818, Annex II Delegated Regulation (EU) 2020/1816, Annex II |
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ESRS E1-9 Disaggregation of monetary amounts by acute and chronic physical risk paragraph 66 (a) ESRS E1-9 Location of significant assets at material physical risk paragraph 66 (c). |
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Article 449a Regulation (EU) No 575/2013; Commission Implementing Regulation (EU) 2022/2453 paragraphs 46 and 47; Template 5: Banking book - Climate change physical risk: Exposures subject to physical risk. |
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ESRS E1-9 Breakdown of the carrying value of its real estate assets by energy-efficiency classes paragraph 67 (c). |
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Article 449a Regulation (EU) No 575/2013; Commission Implementing Regulation (EU) 2022/2453 paragraph 34;Template 2:Banking book -Climate change transition risk: Loans collateralised by immovable property - Energy efficiency of the collateral |
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ESRS E1-9 Degree of exposure of the portfolio to climate- related opportunities paragraph 69 |
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Delegated Regulation (EU) 2020/1818, Annex II |
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ESRS E2-4 Amount of each pollutant listed in Annex II of the E-PRTR Regulation (European Pollutant Release and Transfer Register) emitted to air, water and soil, paragraph 28 |
Indicator number 8 Table #1 of Annex 1 Indicator number 2 Table #2 of Annex 1 Indicator number 1 Table #2 of Annex 1 Indicator number 3 Table #2 of Annex 1 |
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ESRS E3-1 Water and marine resources paragraph 9 |
Indicator number 7 Table #2 of Annex 1 |
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ESRS E3-1 Dedicated policy paragraph 13 |
Indicator number 8 Table 2 of Annex 1 |
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ESRS E3-1 Sustainable oceans and seas paragraph 14 |
Indicator number 12 Table #2 of Annex 1 |
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ESRS E3-4 Total water recycled and reused paragraph 28 (c) |
Indicator number 6.2 Table #2 of Annex 1 |
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ESRS E3-4 Total water consumption in m3 per net revenue on own operations paragraph 29 |
Indicator number 6.1 Table #2 of Annex 1 |
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ESRS 2- IRO 1 - E4 paragraph 16 (a) i |
Indicator number 7 Table #1 of Annex 1 |
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ESRS 2- IRO 1 - E4 paragraph 16 (b) |
Indicator number 10 Table #2 of Annex 1 |
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ESRS 2- IRO 1 - E4 paragraph 16 (c) |
Indicator number 14 Table #2 of Annex 1 |
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ESRS E4-2 Sustainable land / agriculture practices or policies paragraph 24 (b) |
Indicator number 11 Table #2 of Annex 1 |
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ESRS E4-2 Sustainable oceans / seas practices or policies paragraph 24 (c) |
Indicator number 12 Table #2 of Annex 1 |
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ESRS E4-2 Policies to address deforestation paragraph 24 (d) |
Indicator number 15 Table #2 of Annex 1 |
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ESRS E5-5 Non-recycled waste paragraph 37 (d) |
Indicator number 13 Table #2 of Annex 1 |
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ESRS E5-5 Hazardous waste and radioactive waste paragraph 39 |
Indicator number 9 Table #1 of Annex 1 |
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ESRS 2- SBM3 - S1 Risk of incidents of forced labour paragraph 14 (f) |
Indicator number 13 Table #3 of Annex I |
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ESRS 2- SBM3 - S1 Risk of incidents of child labour paragraph 14 (g) |
Indicator number 12 Table #3 of Annex I |
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ESRS S1-1 Human rights policy commitments paragraph 20 |
Indicator number 9 Table #3 and Indicator number 11 Table #1 of Annex I |
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ESRS S1-1 Due diligence policies on issues addressed by the fundamental International Labor Organisation Conventions 1 to 8, paragraph 21 |
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Delegated Regulation (EU) 2020/1816, Annex II |
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ESRS S1-1 processes and measures for preventing trafficking in human beings paragraph 22 |
Indicator number 11 Table #3 of Annex I |
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ESRS S1-1 workplace accident prevention policy or management system paragraph 23 |
Indicator number 1 Table #3 of Annex I |
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ESRS S1-3 grievance/complaints handling mechanisms paragraph 32 (c) |
Indicator number 5 Table #3 of Annex I |
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ESRS S1-14 Number of fatalities and number and rate of work-related accidents paragraph 88 (b) and (c) |
Indicator number 2 Table #3 of Annex I |
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Delegated Regulation (EU) 2020/1816, Annex II |
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ESRS S1-14 Number of days lost to injuries, accidents, fatalities or illness paragraph 88 (e) |
Indicator number 3 Table #3 of Annex I |
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ESRS S1-16 Unadjusted gender pay gap paragraph 97 (a) |
Indicator number 12 Table #1 of Annex I |
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Delegated Regulation (EU) 2020/1816, Annex II |
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ESRS S1-16 Excessive CEO pay ratio paragraph 97 (b) |
Indicator number 8 Table #3 of Annex I |
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ESRS S1-17 Incidents of discrimination paragraph 103 (a) |
Indicator number 7 Table #3 of Annex I |
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ESRS S1-17 Non-respect of UNGPs on Business and Human Rights and OECD paragraph 104 (a) |
Indicator number 10 Table #1 and Indicator n. 14 Table #3 of Annex I |
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Delegated Regulation (EU) 2020/1816, Annex II Delegated Regulation (EU) 2020/1818 Art 12 (1) |
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ESRS 2- SBM3 – S2 Significant risk of child labour or forced labour in the value chain paragraph 11 (b) |
Indicators number 12 and n. 13 Table #3 of Annex I |
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ESRS S2-1 Human rights policy commitments paragraph 17 |
Indicator number 9 Table #3 and Indicator n. 11 Table #1 of Annex 1 |
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ESRS S2-1 Policies related to value chain workers paragraph 18 |
Indicator number 11 and n. 4 Table #3 of Annex 1 |
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ESRS S2-1Non-respect of UNGPs on Business and Human Rights principles and OECD guidelines paragraph 19 |
Indicator number 10 Table #1 of Annex 1 |
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Delegated Regulation (EU) 2020/1816, Annex II Delegated Regulation (EU) 2020/1818, Art 12 (1) |
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ESRS S2-1 Due diligence policies on issues addressed by the fundamental International Labor Organisation Conventions 1 to 8, paragraph 19 |
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Delegated Regulation (EU) 2020/1816, Annex II |
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ESRS S2-4 Human rights issues and incidents connected to its upstream and downstream value chain paragraph 36 |
Indicator number 14 Table #3 of Annex 1 |
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ESRS S3-1 Human rights policy commitments paragraph 16 |
Indicator number 9 Table #3 of Annex 1 and Indicator number 11 Table #1 of Annex 1 |
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ESRS S3-1 non-respect of UNGPs on Business and Human Rights, ILO principles or and OECD guidelines paragraph 17 |
Indicator number 10 Table #1 Annex 1 |
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Delegated Regulation (EU) 2020/1816, Annex II Delegated Regulation (EU) 2020/1818, Art 12 (1) |
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ESRS S3-4 Human rights issues and incidents paragraph 36 |
Indicator number 14 Table #3 of Annex 1 |
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ESRS S4-1 Policies related to consumers and end-users paragraph 16 |
Indicator number 9 Table #3 and Indicator number 11 Table #1 of Annex 1 |
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ESRS S4-1 Non-respect of UNGPs on Business and Human Rights and OECD guidelines paragraph 17 |
Indicator number 10 Table #1 of Annex 1 |
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Delegated Regulation (EU) 2020/1816, Annex II Delegated Regulation (EU) 2020/1818, Art 12 (1) |
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ESRS S4-4 Human rights issues and incidents paragraph 35 |
Indicator number 14 Table #3 of Annex 1 |
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ESRS G1-1 United Nations Convention against Corruption paragraph 10 (b) |
Indicator number 15 Table #3 of Annex 1 |
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ESRS G1-1 Protection of whistle- blowers paragraph 10 (d) |
Indicator number 6 Table #3 of Annex 1 |
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ESRS G1-4 Fines for violation of anti-corruption and anti-bribery laws paragraph 24 (a) |
Indicator number 17 Table #3 of Annex 1 |
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Delegated Regulation (EU) 2020/1816, Annex II) |
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ESRS G1-4 Standards of anti- corruption and anti- bribery paragraph 24 (b) |
Indicator number 16 Table #3 of Annex 1 |
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Appendix C
Disclosure and Application Requirements in Topical ESRS that are applicable in conjunction with ESRS 2 General disclosures
ESRS 2 Disclosure Requirement |
Related ESRS paragraph |
GOV–1 The role of the administrative, management and supervisory bodies |
ESRS G1 Business conduct (paragraph 5) |
GOV–3 Integration of sustainability-related performance in incentive schemes |
ESRS E1 Climate change (paragraph 13) |
SBM–2 Interests and views of stakeholders |
ESRS S1 Own workforce (paragraph 12) ESRS S2 Workers in the value chain (paragraph 9) ESRS S3 Affected communities (paragraph 7) ESRS S4 Consumers and end-users (paragraph 8) |
SBM–3 Material impacts, risks and opportunities and their interaction with strategy and business model |
ESRS E1 Climate Change (paragraphs 18 to 19) ESRS E4 Biodiversity and ecosystems (paragraph 16) ESRS S1 Own workforce (paragraph 13 to 16) ESRS S2 Workers in the value chain (paragraph 10 to 13) ESRS S3 Affected communities (paragraph 8 to 11) ESRS S4 Consumers and end-users (paragraph 9 to 12) |
IRO-1 Description of the processes to identify and assess material impacts, risks and opportunities |
ESRS E1 Climate change (paragraph 20 to 21) ESRS E2 Pollution (paragraph 11) ESRS E3 Water and marine resources (paragraph 8) ESRS E4 Biodiversity and ecosystems (paragraph 17 to 19) ESRS E5 Resource use and circular economy (paragraph 11) ESRS G1 Business conduct (paragraph 6) |
ESRS E1
CLIMATE CHANGE
Objective
Interactions with other ESRS
Disclosure Requirements
ESRS 2 General disclosures
Governance
Disclosure requirement related to ESRS 2 GOV-3 Integration of sustainability-related performance in incentive schemes
Strategy
Disclosure Requirement E1-1 – Transition plan for climate change mitigation
Disclosure Requirement related to ESRS 2 SBM-3 – Material impacts, risks and opportunities and their interaction with strategy and business model
Impact, risk and opportunity management
Disclosure requirement related to ESRS 2 IRO-1 – Description of the processes to identify and assess material climate-related impacts, risks and opportunities
Disclosure Requirement E1-2 – Policies related to climate change mitigation and adaptation
Disclosure Requirement E1-3 – Actions and resources in relation to climate change policies
Metrics and targets
Disclosure Requirement E1-4 – Targets related to climate change mitigation and adaptation
Disclosure Requirement E1-5 – Energy consumption and mix
Energy intensity based on net revenue
(44)
Disclosure Requirement E1-6 – Gross Scopes 1, 2, 3 and Total GHG emissions
GHG Intensity based on net revenue
(46)
Disclosure Requirement E1-7 – GHG removals and GHG mitigation projects financed through carbon credits
Disclosure Requirement E1-8 – Internal carbon pricing
Disclosure Requirement E1-9 – Anticipated financial effects from material physical and transition risks and potential climate-related opportunities
Appendix A
Application Requirements
Strategy
Disclosure Requirement E1-1 – Transition plan for climate change mitigation
Disclosure Requirement related to ESRS 2 SBM-3 - Material impacts, risks and opportunities and their interaction with strategy and business model
Impact, risk and opportunity management
Disclosure Requirement related to ESRS 2 IRO-1 Description of the processes to identify and assess material climate-related impacts, risks and opportunities
Classification of climate-related hazards (Source: Commission delegated regulation (EU) 2021/2139) |
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Temperature-related |
Wind-related |
Water-related |
Solid mass- related |
Chronic |
Changing temperature (air, freshwater, marine water) |
Changing wind patterns |
Changing precipitation patterns and types (rain, hail, snow/ice) |
Coastal erosion |
Heat stress |
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Precipitation or hydrological variability |
Soil degradation |
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Temperature variability |
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Ocean acidification |
Soil erosion |
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Permafrost thawing |
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Saline intrusion |
Solifluction |
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Sea level rise |
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Water stress |
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Acute |
Heat wave |
Cyclones, hurricanes, typhoons |
Drought |
Avalanche |
Cold wave/frost |
Storms (including blizzards, dust, and sandstorms) |
Heavy precipitation (rain, hail, snow/ice) |
Landslide |
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Wildfire |
Tornado |
Flood (coastal, fluvial, pluvial, ground water) |
Subsidence |
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Glacial lake outburst |
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Examples of climate-related transition events (examples based on TCFD classification) |
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Policy and legal |
Technology |
Market |
Reputation |
Increased pricing of GHG emissions |
Substitution of existing products and services with lower emissions options |
Changing customer behaviour |
Shifts in consumer preferences |
Enhanced emissions- reporting obligations |
Unsuccessful investment in new technologies |
Uncertainty in market signals |
Stigmatization of sector |
Mandates on and regulation of existing products and services |
Costs of transition to lower emissions technology |
Increased cost of raw materials |
Increased stakeholder concern |
Mandates on and regulation of existing production processes |
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Negative stakeholder feedback |
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Exposure to litigation |
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Climate-related scenario analysis
Disclosure Requirement E1-2 – Policies related to climate change mitigation and adaptation
Disclosure Requirements E1-3 – Actions and resources in relation to climate change policies
Metrics and targets
Disclosure Requirement E1-4 – Targets related to climate change mitigation and adaptation
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2030 |
2050 |
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Cross-sector (ACA) reductions pathway based on the year 2020 as the reference year |
-42 % |
-90 % |
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Base year (e.g., 2025) |
2030 target |
2035 target |
… |
Up to 2050 target |
GHG emissions (ktCO2eq) |
100 |
60 |
40 |
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Energy efficiency and consumption reduction |
- |
-10 |
-4 |
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Material efficiency and consumption reduction |
- |
-5 |
- |
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Fuel switching |
- |
-2 |
- |
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Electrification |
- |
- |
-10 |
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Use of renewable energy |
- |
-10 |
-3 |
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Phase out, substitution or modification of product |
- |
-8 |
- |
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Phase out, substitution or modification of process |
- |
-5 |
-3 |
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Other |
- |
- |
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Disclosure Requirement E1-5 – Energy consumption and mix
Calculation guidance
Energy consumption and mix |
Comparative |
Year N |
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Share of fossil sources in total energy consumption (%) |
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Share of consumption from nuclear sources in total energy consumption (%) |
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Share of renewable sources in total energy consumption (%) |
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Total energy consumption (MWh) (calculated as the sum of lines 6, and 11) |
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Energy intensity based on net revenue
Calculation guidance
Energy intensity per net revenue |
Comparative |
N |
% N / N-1 |
Total energy consumption from activities in high climate impact sectors per net revenue from activities in high climate impact sectors (MWh/Monetary unit) |
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Connectivity of energy intensity based on net revenue with financial reporting information
Net revenue from activities in high climate impact sectors used to calculate energy intensity |
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Net revenue (other) |
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Total net revenue (Financial statements) |
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Disclosure Requirements E1-6 – Gross Scopes 1, 2, 3 and Total GHG emissions
Calculation guidance
GHG Emissions in (t CO2eq) from EU ETS installations + national ETS installations + nonEU ETS installations |
Scope 1 GHG emissions (t CO2eq) |
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Retrospective |
Milestones and target years |
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Base year |
Compa- rative |
N |
% N / N-1 |
2025 |
2030 |
(2050) |
Annual % target / Base year |
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Scope 1 GHG emissions |
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Gross Scope 1 GHG emissions (tCO2eq) |
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Percentage of Scope 1 GHG emissions from regulated emission trading schemes (%) |
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Scope 2 GHG emissions |
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Gross location-based Scope 2 GHG emissions (tCO2eq) |
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Gross market-based Scope 2 GHG emissions (tCO2eq) |
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Significant scope 3 GHG emissions |
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Total Gross indirect (Scope 3) GHG emissions (tCO2eq) |
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[Optional sub-category: Cloud computing and data centre services |
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Total GHG emissions |
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Total GHG emissions (location-based) (tCO2eq) |
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Total GHG emissions (market-based) (tCO2eq) |
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GHG intensity based on net revenue
Calculation guidance
GHG intensity per net revenue |
Comparative |
N |
% N / N-1 |
Total GHG emissions (location-based) per net revenue (tCO2eq/Monetary unit) |
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Total GHG emissions (market-based) per net revenue (tCO2eq/Monetary unit) |
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Connectivity of GHG intensity based on revenue with financial reporting information
Net revenue used to calculate GHG intensity |
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Net revenue (other) |
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Total net revenue (in financial statements) |
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Disclosure Requirement E1-7 – GHG removals and GHG mitigation projects financed through carbon credits
GHG removals and storage in own operations and the upstream and downstream value chain
Calculation guidance
Removals |
Comparative |
N |
% N / N-1 |
GHG removal activity 1 (e.g.., forest restoration) |
- |
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GHG removal activity 2 (e.g.., direct air capture) |
- |
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… |
- |
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Total GHG removals from own operations (tCO2eq) |
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GHG removal activity 1 (e.g.., forest restoration) |
- |
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GHG removal activity 2 (e.g.., direct air capture) |
- |
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… |
- |
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Total GHG removals in the upstream and downstream value chain (tCO2eq) |
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Reversals (tCO2eq) |
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GHG mitigation projects financed through carbon credits
Calculation guidance
Carbon credits cancelled in the reporting year |
Comparative |
N |
Total (tCO2eq) |
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Share from removal projects (%) |
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Share from reduction projects (%) |
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Recognised quality standard 1 (%) |
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Recognised quality standard 2 (%) |
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Recognised quality standard 3 (%) |
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… |
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Share from projects within the EU (%) |
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Share of carbon credits that qualify as corresponding adjustments (%) |
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Carbon credits planned to be cancelled in the future |
Amount until [period] |
Total (tCO2eq) |
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Disclosure Requirement E1-8 – Internal carbon pricing
Types of internal carbon prices |
Volume at stake (tCO2eq) |
Prices applied (€/tCO2eq) |
Perimeter description |
CapEx shadow price |
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Research and Development (R&D) investment shadow price |
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Internal carbon fee or fund |
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Carbon prices for impairment testing |
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Etc. |
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Disclosure Requirement E1-9 – Anticipated financial effects from material physical and transition risks and potential climate-related opportunities
Anticipated financial effects from material physical and transition risks
Calculation guidance - Anticipated financial effects from material physical risks
Calculation guidance - Anticipated financial effects from transition risk
Connectivity with financial reporting information
Carrying amount of assets or liabilities or net revenue vulnerable to either material physical or transition risks |
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Adjusting items |
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Assets or liabilities or net revenue in the financial statements |
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Climate-related opportunities
ESRS E2
POLLUTION
Objective
Interaction with other ESRS
Disclosure Requirements
ESRS 2 General disclosures
Impact, risk and opportunity management
Disclosure Requirement related to ESRS 2 IRO-1 – Description of the processes to identify and assess material pollution-related impacts, risks and opportunities
Disclosure Requirement E2-1 – Policies related to pollution
Disclosure Requirement E2-2 – Actions and resources related to pollution
Metrics and targets
Disclosure Requirement E2-3 – Targets related to pollution
Disclosure Requirement E2-4 – Pollution of air, water and soil
Disclosure Requirement E2-5 – Substances of concern and substances of very high concern
Disclosure Requirement E2-6 – Anticipated financial effects from material pollution-related risks and opportunities
Appendix A
Application Requirements
ESRS 2 GENERAL DISCLOSURES
Impact, risk and opportunity management
Disclosure Requirement related to ESRS 2 IRO-1 – Description of the processes to identify and assess material pollution-related impacts, risks and opportunities
Disclosure Requirement E2-1 – Policies related to pollution
Disclosure Requirement E2-2 – Actions and resources related to pollution
Metrics and targets
Disclosure Requirement E2-3 – Targets related to pollution
Disclosure Requirement E2-4 – Pollution of air, water and soil
Methodologies
Disclosure Requirement E2-5 – Substances of concern and substances of very high concern
List of substances to be considered
Contextual information
Disclosure Requirement E2-6 – Anticipated financial effects from material pollution-related risks and opportunities
ESRS E3
WATER AND MARINE RESOURCES
Objective
Interaction with other ESRS
Disclosure requirements
ESRS 2 General disclosures
Impact, risk and opportunity management
Disclosure Requirement related to ESRS 2 IRO-1 – Description of the processes to identify and assess material water and marine resources-related impacts, risks and opportunities
Disclosure Requirement E3-1 – Policies related to water and marine resources
Disclosure Requirement E3-2 – Actions and resources related to water and marine resources
Metrics and targets
Disclosure Requirement E3-3 – Targets related to water and marine resources
Disclosure Requirement E3-4 – Water consumption
Disclosure Requirement E3-5 – Anticipated financial effects from material water and marine resources-related risks and opportunities
Appendix A
Application Requirements
ESRS 2 GENERAL DISCLOSURES
Impact, risk and opportunity management
Disclosure Requirement related to ESRS 2 IRO-1 – Description of the processes to identify and assess material water and marine resources-related impacts, risks and opportunities
Disclosure Requirement E3-1 – Policies related to water and marine resources
Disclosure Requirement E3-2 – Actions and resources related to water and marine resources policies
Metrics and targets
Disclosure Requirement E3-3 – Targets related to water and marine resources
Disclosure Requirement E3-4 – Water consumption
Disclosure Requirement E3-5 – Anticipated financial effects from material water and marine resources-related risks and opportunities
ESRS E4
BIODIVERSITY AND ECOSYSTEMS
Objective
Interaction with other ESRS
Disclosure Requirements
ESRS 2 General disclosures
Strategy
Disclosure Requirement E4-1 – Transition plan and consideration of biodiversity and ecosystems
in strategy and business model
Disclosure Requirement SBM 3 – Material impacts, risks and opportunities and their interaction with strategy and business model
Impact, risk and opportunity management
Disclosure Requirement related to ESRS 2 IRO-1 Description of processes to identify and assess material biodiversity and ecosystem-related impacts, risks, dependencies and opportunities
Disclosure Requirement E4-2 – Policies related to biodiversity and ecosystems
Disclosure Requirement E4-3 – Actions and resources related to biodiversity and ecosystems
Metrics and targets
Disclosure Requirement E4-4 – Targets related to biodiversity and ecosystems
Disclosure Requirement E4-5 – Impact metrics related to biodiversity and ecosystems change
Disclosure Requirement E4-6 – Anticipated financial effects from material biodiversity and ecosystem-related risks and opportunities
Appendix A
Application Requirements
ESRS 2 GENERAL DISCLOSURES
Strategy
Disclosure Requirement E4-1 – Transition plan and consideration of biodiversity and ecosystems in strategy and business model
Impact, risk and opportunity management
Disclosure requirements related to ESRS 2 IRO-1 – Description of the processes to identify and assess material biodiversity and ecosystem-related impacts, risks and opportunities
Ecosystem service… |
Actual or potential dependencies |
|
... |
Change of functionality |
Financial loss |
… |
Limited, moderate or significant |
Limited, moderate or significant |
… |
… |
… |
Site location |
Threatened species, protected areas, key biodiversity areas |
Actual or potential impacts |
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… |
… |
Frequency of occurrence |
Speed of impact |
Severity of impact |
Potential for mitigation |
… |
… |
High, medium or low |
<1 year or 1-3 years or >3 years |
High, medium or low |
High, medium or low |
… |
… |
… |
… |
… |
… |
Where are the raw materials produced or sourced from? |
Absolute weight of raw materials (and percentage of the raw material weight) |
In areas with species listed on the IUCN Red List of Threatened Species, the Birds and Habitats Directive or on national lists of threated species |
… |
In officially recognised protected Areas |
… |
In other Key Biodiversity Areas |
… |
Disclosure Requirement E4-2 – Policies related to biodiversity and ecosystems
Disclosure Requirement E4-3 – Actions and resources related to biodiversity and ecosystems
Metrics and targets
Disclosure Requirement E4-4 – Targets related to biodiversity and ecosystems
Type of target according to mitigation hierarchy |
Baseline value and base year |
Target value and geographical scope |
Connected policy or legislation if relevant |
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2025 |
2030 |
Up to 2050 |
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Avoidance |
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Minimisation |
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Rehabilitation and restoration |
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Compensation or offsets |
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Type of target according to sustainability matter |
Baseline value and base year |
Target value and geographical scope |
Connected policy or legislation if relevant |
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2025 |
2030 |
Up to 2050 |
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Disclosure Requirement E4-5 – Impact metrics related to biodiversity and ecosystems change
Disclosure Requirement E4-6 – Anticipated financial effects from material biodiversity and ecosystem-related risks and opportunities
ESRS E5
RESOUCE USE AND CIRCULAR ECONOMY
Objective
Interactions with other ESRS
Disclosure Requirements
ESRS 2 General disclosures
Impact, risk and opportunity management
Disclosure Requirement related to ESRS 2 IRO-1 – Description of the processes to identify and assess material resource use and circular economy-related impacts, risks and opportunities
Disclosure Requirement E5-1 – Policies related to resource use and circular economy
Disclosure Requirement E5-2 – Actions and resources related to resource use and circular economy
Metrics and targets
Disclosure Requirement E5-3 – Targets related to resource use and circular economy
Disclosure Requirement E5-4 – Resource inflows
Disclosure Requirement E5-5 – Resource outflows
Products and materials
Waste
Disclosure Requirement E5-6 – Anticipated financial effects from material resource use and circular economy-related risks and opportunities
Appendix A
Application Requirements
ESRS 2 GENERAL DISCLOSURES
Impact, risk and opportunity management
Disclosure requirement related to ESRS 2 IRO-1 – Description of the processes to identify and assess material resource use and circular economy-related impacts, risks and opportunities
Disclosure Requirement E5-1 – Policies related to resource use and circular economy
Disclosure Requirement E5-2 – Actions and resources in relation to resource use and circular economy
Metrics and targets
Disclosure Requirement E5-3 - Targets related to resource use and circular economy
Disclosure Requirement E5-4 - Resource inflows
Disclosure Requirement E5-5 - Resource outflows
Disclosure Requirement E5-6 – Anticipated financial effects from material resource use and circular economy-related risks and opportunities
ESRS S1
OWN WORKFORCE
Objective
Interaction with other ESRS
Disclosure requirements
ESRS 2 General disclosures
Strategy
Disclosure Requirement related to ESRS 2 SBM-2 – Interests and views of stakeholders
Disclosure Requirement related to ESRS 2 SBM-3 – Material impacts, risks and opportunities and their interaction with strategy and business model
Impacts, risks and opportunities management
Disclosure Requirement S1-1 – Policies related to own workforce
Disclosure Requirement S1-2 – Processes for engaging with own workforce and workers’ representatives about impacts
Disclosure Requirement S1-3 – Processes to remediate negative impacts and channels for own workforce to raise concerns
Disclosure Requirement S1-4 – Taking action on material impacts on own workforce, and approaches to managing material risks and pursuing material opportunities related to own workforce, and effectiveness of those actions
Metrics and targets
Disclosure Requirement S1-5 – Targets related to managing material negative impacts, advancing positive impacts, and managing material risks and opportunities
Disclosure Requirement S1-6 – Characteristics of the undertaking’s employees
Disclosure Requirement S1-7 – Characteristics of non-employees in the undertaking’s own workforce
Disclosure Requirement S1-8 – Collective bargaining coverage and social dialogue
Disclosure Requirement S1-9 – Diversity metrics
Disclosure Requirement S1-10 – Adequate wages
Disclosure Requirement S1-11 – Social protection
Disclosure Requirement S1-12– Persons with disabilities
Disclosure Requirement S1-13 – Training and skills development metrics
Disclosure Requirement S1-14 – Health and safety metrics
Disclosure Requirement S1-15 – Work-life balance metrics
Disclosure Requirement S1-16 – Remuneration metrics (pay gap and total remuneration)
Disclosure Requirement S1-17 – Incidents, complaints and severe human rights impacts
Appendix A
Application Requirements
Objective
ESRS 2 General Disclosures
Strategy
Disclosure Requirement related to ESRS 2 SBM-2 – Interests and views of stakeholders
Disclosure Requirement related to ESRS 2 SBM-3 – Material impacts, risks and opportunities and their interaction with strategy and business model
Impacts, risks and opportunities management
Disclosure Requirement S1-1 – Policies related to own workforce
Disclosure Requirement S1-2 – Processes for engaging with own workforce and workers' representatives about impacts
Disclosure Requirement S1-3 – Processes to remediate negative impacts and channels for own workers to raise concerns
Disclosure Requirement S1-4 – Taking action on material impacts and approaches to mitigating material risks and pursuing material opportunities related to own workforce, and effectiveness of those actions and approaches
Metrics and targets
Disclosure Requirement S1-5 – Targets related to managing material impacts, advancing positive impacts, as well as to risks and opportunities
Disclosure Requirement S1-6 – Characteristics of the Undertaking’s Employees
Gender |
Number of employees (head count) |
Male |
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Female |
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Other |
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Not reported |
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Total Employees |
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Country |
Number of employees (head count) |
Country A |
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Country B |
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Country C |
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Country D |
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[Reporting period] |
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FEMALE |
MALE |
OTHER (*1) |
NOT DISCLOSED |
TOTAL |
Number of employees (head count / FTE) |
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Number of permanent employees (head count / FTE) |
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Number of temporary employees (head count / FTE) |
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Number of non-guaranteed hours employees (head count / FTE) |
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Number of full-time employees (head count / FTE) |
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Number of part-time employees (head count / FTE) |
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[Reporting period] |
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REGION A |
REGION B |
TOTAL |
Number of employees (head count / FTE) |
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Number of permanent employees (head count / FTE) |
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Number of temporary employees (head count / FTE) |
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Number of non-guaranteed hours employees (head count / FTE) |
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Number of full-time employees (head count / FTE) |
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Number of part-time employees (head count / FTE) |
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Disclosure Requirement S1-7 – Characteristics of non-employees in the undertaking’s own workforce
Disclosure Requirement S1-8 – Collective bargaining coverage and social dialogue
Collective bargaining coverage
Social Dialogue
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Collective Bargaining Coverage |
Social dialogue |
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Coverage Rate |
Employees – EEA (for countries with >50 empl. representing >10% total empl.) |
Employees – Non-EEA (estimate for regions with >50 empl. representing >10% total empl) |
Workplace representation (EEA only) (for countries with >50 empl. representing >10% total empl) |
0 -19 % |
|
Region A |
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20 -39 % |
Country A |
Region B |
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40 -59 % |
Country B |
|
Country A |
60 -79 % |
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Country B |
80 -100 % |
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Disclosure Requirement S1-9 – Diversity metrics
Disclosure Requirement S1-10 – Adequate Wages
Disclosure Requirement S1-11 – Social protection
Disclosure Requirement S1-12 – Persons with disabilities
Disclosure Requirement S1-13 – Training and Skills Development metrics
Disclosure Requirement S1-14 – Health and safety metrics
Guidance on “work-related”
Guidance on computing the rate of work-related injuries
Guidance on recordable work-related ill health
Guidance on the number of days lost
Disclosure Requirement S1-15 – Work-life balance
Disclosure Requirement S1-16 – Remuneration metrics (pay gap and total remuneration)
Pay gap
Total remuneration Ratio
Disclosure Requirement S1-17 –Incidents, complaints and severe human rights impacts
Appendix A.1
Application Requirements for ESRS 2 related disclosures
Social and human rights matters |
Non-exhaustive list of factors to consider in Materiality Assessment |
Secure employment |
% of employees with temporary contracts, ratio of non-employees to employees, social protection |
Working time |
% of employees with part time or zero-hour contracts, employee satisfaction with working time |
Adequate wages |
EU, national or local legal definitions of adequate wages, fair wages, and minimum wages |
Social dialogue / existence of work councils / information, consultation and participation rights of workers |
Extent of workplace, cross-border and board-level representation through trade unions and/or works councils |
Freedom of association/Collective bargaining including the rate of workforce covered by collective agreements |
% of own workforce covered by collective bargaining agreements, work stoppages |
Work-life balance |
Family-related leave, flexible working hours, access to childcare |
Health and safety |
Coverage by H&S system, rate of fatalities, non-fatal accidents, work-related ill health, work days lost |
Gender equality and equal pay for work of equal value |
% of women in top management and workforce, male-female wage gap |
Training and skills development |
Amount and distribution of training, % of employees with regular performance and development reviews |
The employment and inclusion of people with disabilities |
% employment and accessibility measures for employees with disabilities |
Measures against violence and harassment in the workplace |
Prevalence of violence and harassment |
Diversity |
Representation of women and /or ethnic groups or minorities in own workforce. Age distribution in own workforce. Percentage of persons with disabilities within the own workforce. |
Child labour |
Type of operations and geographical areas at risk of child labour |
Forced labour |
Type of operations and geographical areas at risk of forced labour |
Appendix A.2
Application Requirements for ESRS S1-1 Policies related to own workforce
Social and human rights matters |
Examples of policies: |
Secure employment |
No-layoff policy, limits on renewing temporary contracts, employer provision of social protection where state provision is lacking |
Working time |
Limitations on overtime, long and split shifts, and night and weekend work, adequate scheduling of lead times |
Adequate wages |
Policy to ensure all people in own workforce receive an adequate wage |
Social dialogue / existence of work councils / information, consultation and participation rights of workers |
Policy to encourage institutions for social dialogue, regular information and consultation with worker representatives, consultation before final decisions on employment-related issues are reached |
Freedom of association/Collective bargaining including the rate of workers covered by collective agreements |
Non-interference in trade union formation and recruitment (including trade union access to undertakings), bargaining in good faith, adequate time off for workers’ representatives to carry out their duties, facilities and dismissal protection for workers' representatives, no discrimination of trade union members and workers' representatives |
Work-life balance |
Provision of family leave, flexible working time, access to day care facilities for all employees |
Health and safety |
Coverage of all own workforce in H&S management system |
Gender equality and equal work for equal pay |
Policy for gender equality and equal pay for equal work |
Training and skills development |
Policy for enhancing skills and career prospects for employees |
The employment and inclusion of people with disabilities |
Policy for making workplaces accessible to persons with disabilities |
Measures against violence and harassment in the workplace |
Zero tolerance policy for violence and harassment at workplace |
Diversity |
Policy for inclusiveness (i.e., ethnic diversity or minority groups) and positive action. |
Child labour |
Policy for identifying where child labour occurs, identifying where exposure of young workers to hazardous work occurs and preventing risk of exposure |
Forced labour |
Policy for identifying where forced labour occurs and reducing risk of forced labour |
Appendix A.3
Application Requirements for ESRS S1–4 Taking action on material impacts on own workforce, and approaches to mitigating material risks and pursuing material opportunities related to own workforce, and effectiveness of those actions
Social and human rights matters |
Examples of actions: |
Secure employment |
Offer permanent contracts to employees with temporary contracts, implement plans for social protection where state provision is lacking |
Working time |
Shift work rotation, extend advance notice of scheduling, reduction of excessive overtime |
Adequate wages |
Negotiation of fair wages in collective bargaining agreements, verification that employment agencies pay a fair wage |
Social dialogue / existence of work councils / information, consultation and participation rights of workers |
Expansion of sustainability issues dealt with in social dialogue, increase in number of meetings, increase in resources for works councils |
Freedom of association/Collective bargaining including the rate of workers covered by collective agreements |
Expansion of sustainability issues dealt with in collective bargaining, increase in resources for workers’ representatives |
Work-life balance |
Expand family leave eligibility and flexible working time arrangements, increasing provision of day care |
Health and safety |
Increase health & safety training, investment in safer equipment |
Gender equality and equal work for equal pay |
Targeted recruitment and promotion of women, reduction in pay gap through negotiation of collective bargaining agreements |
Training and skills development |
Skills audits, training to fill skills gaps |
The employment and inclusion of people with disabilities |
Increasing accessibility measures |
Measures against violence and harassment in the workplace |
Improving complaint mechanisms, increasing sanctions against violence and harassment, providing training for prevention to management |
Diversity |
Training on diversity and inclusion (including ethnicity considerations), targeted recruitment of underrepresented groups |
Child labour |
Age verification measures, partnerships with organizations to eliminate child labour, measures against worst forms of child labour |
Forced labour |
Measures ensuring free consent to employment without threat of penalty, contracts in understandable language, freedom to terminate employment without penalty, disciplinary measures should not obligate labour, free consent to overtime, freedom of movement (including to exit workplace), fair treatment for migrant workers, monitoring employment agencies. |
Appendix A.4
Application Requirements for ESRS S1–5 Targets related to managing material negative impacts, advancing positive impacts, and managing material risks and opportunities
Social and human rights matters |
Examples of targets: |
Secure employment |
Increasing the % of workforce with employment contracts (especially permanent contracts) and social protection |
Working time |
Increasing the % of workforce with flexible working time arrangements |
Adequate wages |
Ensuring that all people in own workforce receive an adequate wage |
Social dialogue / existence of work councils / information, consultation and participation rights of workers |
Extending social dialogue to more establishments and/or countries |
Freedom of association/Collective bargaining including the rate of workers covered by collective agreements |
Increasing the % of own workforce covered by collective bargaining, negotiating collective bargaining agreements over sustainability issues |
Work-life balance |
Extending work-life measures to a greater % of own workforce |
Health and safety |
Reducing the rate of injuries and worktime lost due to injuries |
Gender equality and equal work for equal pay |
Increasing the % of women in the workforce and top management, reducing the male-female wage gap |
Training and skills development |
Increasing the % of employees receiving training and regular skills development reviews |
The employment and inclusion of people with disabilities |
Increasing the % of persons with disabilities in own workforce |
Measures against violence and harassment in the workplace |
Extending measures to all workplaces |
Diversity |
Increasing the % of underrepresented groups in own workforce and top management |
Child labour |
Extending measures for preventing exposure of young persons to hazardous work to a greater % of operations |
Forced labour |
Extending measures for preventing forced labour to a greater number of operations |
ESRS S2
WORKERS IN THE VALUE CHAIN
Objective
Interaction with other ESRS
Disclosure Requirements
ESRS 2 General disclosures
Strategy
Disclosure Requirement related to ESRS 2 SBM-2 Interests and views of stakeholders
Disclosure Requirement related to ESRS 2 SBM-3 Material impacts, risks and opportunities and their interaction with strategy and business model
Impact, risk and opportunity management
Disclosure Requirement S2-1 – Policies related to value chain workers
Disclosure Requirement S2-2 – Processes for engaging with value chain workers about impacts
Disclosure Requirement S2-3 – Processes to remediate negative impacts and channels for value chain workers to raise concerns
Disclosure Requirement S2-4 – Taking action on material impacts on value chain workers, and approaches to managing material risks and pursuing material opportunities related to value chain workers, and effectiveness of those actions
Metrics and targets
Disclosure Requirement S2-5 – Targets related to managing material negative impacts, advancing positive impacts, and managing material risks and opportunities
Appendix A
Application Requirements
Objective
ESRS 2 General disclosures
Strategy
Disclosure Requirement related to ESRS 2 SBM-2 - Interests and views of stakeholders
Disclosure Requirement related to ESRS 2 SBM-3 - Material impacts, risks and opportunities and their interaction with strategy and business model
Impact, risk and opportunity management
Disclosure Requirement S2-1 – Policies related to value chain workers
Disclosure Requirement S2-2 – Processes for engaging with value chain workers about impacts
Disclosure Requirement S2-3 – Processes to remediate negative impacts and channels for value chain workers to raise concerns
Disclosure Requirement S2-4 – Taking action on material impacts on value chain workers, and approaches to managing material risks and pursuing material opportunities related to value chain workers, and effectiveness of those actions
Metrics and targets
Disclosure Requirement S2-5 – Targets related to managing material negative impacts, advancing positive impacts, and managing material risks and opportunities
ESRS S3
AFFECTED COMMUNITIES
Objective
Interaction with other ESRS
Disclosure Requirements
ESRS 2 General disclosures
Strategy
Disclosure Requirement related to ESRS 2 SBM-2 – Interests and views of stakeholders
Disclosure Requirement related to ESRS 2 SBM-3 – Material impacts, risks and opportunities and their interaction with strategy and business model
Impact, risk and opportunity management
Disclosure Requirement S3-1 – Policies related to affected communities
Disclosure Requirement S3-2 – Processes for engaging with affected communities about impacts
Disclosure Requirement S3-3 – Processes to remediate negative impacts and channels for affected communities to raise concerns
Disclosure Requirement S3-4 – Taking action on material impacts on affected communities, and approaches to managing material risks and pursuing material opportunities related to affected communities, and effectiveness of those actions
Metrics and targets
Disclosure Requirement S3-5 – Targets related to managing material negative impacts, advancing positive impacts, and managing material risks and opportunities
Appendix A
Application Requirements
Objective
ESRS 2 General Disclosures
Strategy
Disclosure Requirement related to ESRS 2 SBM-2 – Interests and views of stakeholders
Disclosure Requirement related to ESRS 2 SBM-3 - Material impacts, risks and opportunities and their interaction with strategy and business model
Impact, risk and opportunity management
Disclosure Requirement S3-1 – Policies related to affected communities
Disclosure Requirement S3-2 – Processes for engaging with affected communities about impacts
Disclosure Requirement S3-3 – Processes to remediate negative impacts and channels for affected communities to raise concerns
Disclosure Requirement S3-4 – Taking action on material impacts on affected communities, and approaches to managing material risks and pursuing material opportunities related to affected communities, and effectiveness of those actions
Metrics and targets
Disclosure Requirement S3-5 – Targets related to managing material negative impacts, advancing positive impacts, and managing material risks and opportunities
ESRS S4
CONSUMERS AND END-USERS
Objective
Interaction with other ESRS
Disclosure Requirements
ESRS 2 General Disclosures
Strategy
Disclosure Requirement related to ESRS 2 SBM-2 – Interests and views of stakeholders
Disclosure Requirement related to ESRS 2 SBM-3 – Material impacts, risks and opportunities and their interaction with strategy and business model
Impact, risk and opportunity management
Disclosure Requirement S4-1 – Policies related to consumers and end-users
Disclosure Requirement S4-2 – Processes for engaging with consumers and end-users about impacts
Disclosure Requirement S4-3 – Processes to remediate negative impacts and channels for consumers and end-users to raise concerns
Disclosure Requirement S4-4 – Taking action on material impacts on consumers and end- users, and approaches to managing material risks and pursuing material opportunities related to consumers and end-users, and effectiveness of those actions
Metrics and targets
Disclosure Requirement S4-5 – Targets related to managing material negative impacts, advancing positive impacts, and managing material risks and opportunities
Appendix A
Application Requirements
Objective
ESRS 2 General disclosures
Strategy
Disclosure Requirement related to ESRS 2 SBM-2 – Interests and views of stakeholders
Disclosure Requirement related to ESRS 2 SBM-3 – Material impacts, risks and opportunities and their interaction with strategy and business model
Impact, risk and opportunity management
Disclosure Requirement S4-1 – Policies related to consumers and end-users
Disclosure Requirement S4-2 – Processes for engaging with consumers and end-users about impacts
Disclosure Requirement S4-3 – Processes to remediate negative impacts and channels for consumers and end-users to raise concerns
Disclosure Requirement S4-4 – Taking action on material impacts on consumers and end- users, and approaches to managing material risks and pursuing material opportunities related to consumers and end-users, and effectiveness of those actions
Metrics and targets
Disclosure Requirement S4-5 – Targets related to managing material negative impacts, advancing positive impacts, and managing material risks and opportunities
ESRS G1
BUSINESS CONDUCT
Objective
Interaction with other ESRS
Disclosure Requirements
ESRS 2 General disclosures
Governance
Disclosure Requirement related to ESRS 2 GOV-1 – The role of the administrative, management and supervisory bodies
Impact, risk and opportunity management
Disclosure Requirement related to ESRS 2 IRO-1 – Description of the processes to identify and assess material impacts, risks and opportunities
Disclosure Requirement G1-1– Business conduct policies and corporate culture
Disclosure Requirement G1-2 – Management of relationships with suppliers
Disclosure Requirement G1-3 – Prevention and detection of corruption and bribery
Metrics and targets
Disclosure Requirement G1-4 – Incidents of corruption or bribery
Disclosure Requirement G1-5 – Political influence and lobbying activities
Disclosure Requirement G1-6 – Payment practices
Appendix A
Application Requirements
Impact, risk and opportunity management
Disclosure Requirement G1-1 – Business conduct policies and corporate culture
Disclosure Requirement G1-2 – Management of relationships with suppliers
Disclosure Requirement G1-3 – Prevention and detection of corruption and bribery
|
At-risk functions |
Managers |
AMSB (132) |
Other own workers |
Training coverage |
|
|
|
|
Total |
20 000 |
200 |
16 |
70 000 |
Total receiving training |
19 500 |
150 |
8 |
5 000 |
Delivery method and duration |
|
|
|
|
Classroom training |
5 hours |
|
|
|
Computer-based training |
1 hour |
2 hours |
1 hour |
|
Voluntary computer-based training |
|
|
|
1 hour |
Frequency |
|
|
|
|
How often training is required |
Annually |
Annually |
Bi-annually |
- |
Topics covered |
|
|
|
|
Definition of corruption |
X |
X |
X |
X |
Policy |
X |
X |
X |
X |
Procedures on suspicion/detection |
X |
X |
|
|
Etc. |
X |
|
|
|
Metrics and targets
Disclosure Requirement G1-5 – Political influence and lobbying activities
|
2023 |
2022 [TBC] |
Political funding provided |
100 |
|
Funding to QRP |
75 |
|
Funding to EFG |
25 |
|
|
100 |
|
Disclosure Requirement G1-6 – Payment practices
ANNEX II
ACRONYMS AND GLOSSARY OF TERMS
AMS |
Automated Measuring Systems |
AQI |
Air Quality Indices |
AR |
Application Requirements |
AWS |
Alliance for Water Stewardship |
BAT |
Best Available Technique |
BAT-AEL |
Best Available Technique-Associated Emission Level |
BAT-AEPL |
Best Available Technique-Associated Environmental Performance Level |
BREFs |
Best Available Techniques Reference Documents |
Btu |
British Thermal Units |
CapEx |
Capital Expenditure |
CBD |
Convention for Biological Diversity |
CDDA |
Common Database on Designated Areas |
CEN |
European Committee for Standardization |
CENELEC |
European Committee for Electrotechnical Standardization |
CH4 |
Methane |
CICES |
Common International Classification of Ecosystem Services |
C02 |
Carbon Dioxide |
CRR |
Regulation (EU) 757/2013 of the European Parliament and of the Council(1) (Capital Requirements Regulation) |
DEGURBA |
Degree of Urbanisation |
DR BP-1 |
Disclosure Requirement - General basis for preparation of the sustainability statements |
DR BP-2 |
Disclosure Requirement - Disclosures in relation to specific circumstances |
DR GOV-1 |
Disclosure Requirement - The role of the administrative, management and supervisory bodies |
DR GOV-2 |
Disclosure Requirement - Information provided to and sustainability matters addressed by the undertaking’s administrative, management and supervisory bodies |
DR GOV-3 |
Disclosure Requirement - Integration of sustainability- related performance in incentive schemes |
DR GOV-4 |
Disclosure Requirement - Statement on sustainability due diligence |
DR GOV-5 |
Disclosure Requirement - Risk management and internal controls over sustainability reporting |
DR SBM-1 |
Disclosure Requirement - Market position, strategy, business model(s) and value chain |
DR SBM-2 |
Disclosure Requirement - Interests and views of stakeholders |
DR SBM-3 |
Disclosure Requirement - Material impacts, risks and opportunities and their interaction with strategy and business model(s) |
DR IRO-1 |
Disclosure Requirement - Description of the processes to identify and assess material impacts, risks and opportunities |
DR IRO-2 |
Disclosure Requirements in ESRS covered by the undertaking’s sustainability statements |
DNSH |
Do No Significant Harm |
DR |
Disclosure Requirements |
EBA |
European Banking Authority |
EC |
European Commission |
EEA |
European Economic Area |
EFRAG |
European Financial Reporting Advisory Group |
EFRAG SRB |
European Financial Reporting Advisory Group Sustainability Reporting Board |
EIA |
Environmental Impact Assessment |
EMAS |
Eco-Management and Audit Scheme |
EPC |
Energy Performance Certificate |
E-PRTR |
European Pollutant Release and Transfer Register |
ESA |
European Supervisory Authorities |
ESMA |
European Securities and Markets Authority |
ESRS |
European Sustainability Reporting Standards |
ESRS 1 |
European Sustainability Reporting Standard 1 General requirements |
ESRS 2 |
European Sustainability Reporting Standard 2 General disclosures |
ESRS E1 |
European Sustainability Reporting Standard E1 Climate change |
ESRS E2 |
European Sustainability Reporting Standard E2 Pollution |
ESRS E3 |
European Sustainability Reporting Standard E3 Water and marine resources |
ESRS E4 |
European Sustainability Reporting Standard E4 Biodiversity and ecosystems |
ESRS E5 |
European Sustainability Reporting Standard E5 Resource use and circular economy |
ESRS G1 |
European Sustainability Reporting Standard G1 Business conduct |
ESRS S1 |
European Sustainability Reporting Standard S1 Own workforce |
ESRS S2 |
European Sustainability Reporting Standard S2 Workers in the value chain |
ESRS S3 |
European Sustainability Reporting Standard S3 Affected communities |
ESRS S4 |
European Sustainability Reporting Standard S4 Consumers & end-users |
EU |
European Union |
EU ETS |
European Union Emissions Trading System |
EWC |
European Works Council |
FPIC |
Free, Prior and Informed Consent |
FTE |
Full-time equivalent |
GAAP |
Generally Accepted Accounting Principles |
GHG |
Greenhouse Gas |
GJ |
Giga-Joules |
GRI |
Global Reporting Initiative |
GWP |
Global Warming Potential |
HFCs |
Hydrofluorocarbons |
IED |
Directive 2010/75/EU of the European Parliament and of the Council(2) (Industrial Emissions Directive) |
IFC |
International Finance Corporation |
IFRS |
International Financial Reporting Standards |
ILO |
International Labour Organisation |
IPBES |
Intergovernmental Science-Policy Platform on Biodiversity and Ecosystem Services |
IPCC |
Intergovernmental Panel on Climate Change |
ISEAL |
International Social and Environmental Accreditation and Labelling Alliance |
ISO |
International Organization for Standardization |
ISSB |
International Sustainability Standards Board |
ITS |
Implementing Technical Standards |
IUCN |
International Union for Conservation of Nature |
KBA |
Key Biodiversity Areas |
Kg |
Kilogram |
lb |
Pounds |
LEAP |
Locate Evaluate Assess Prepare |
LGBTQI |
Lesbian, Gay, Bisexual, Transgender, Queer, Intersex |
MDR |
Minimum Disclosure Requirement |
MWh |
Mega-Watt-hours |
N2O |
Nitrous Oxide |
NACE |
Statistical Classification of Economic Activities in the European Community |
NF3 |
Nitrogen trifluoride |
NGOs |
Non-Governmental Organisations |
NH3 |
Ammonia |
NOX |
Nitrogen oxides |
NUTS |
Nomenclature of Territorial Units of Statistics |
O3 |
Ozone |
ODS |
Ozone-depleting substance |
OECD |
Organisation for Economic Co-operation and Development |
OECM |
One Earth Climate Model |
OpEX |
Operating Expenditure |
PBTS |
Persistent, bioaccumulative and toxic substances |
PCAF |
Partnership for Carbon Accounting Financial |
PCFs |
Perfluorocarbons |
PM |
Particulate Matter |
PMTs |
Persistent, Mobile and Toxic Substances |
POPs |
Persistent organic pollutants |
REACH |
Registration, Evaluation, Authorisation and Restriction of Chemicals |
SBTi |
Science Based Targets Initiative |
SBTN |
Science Based Targets Network |
SCE |
Societas Cooperativa Europaea |
SDA |
Sectoral Decarbonisation Approach |
SDGs |
Sustainable Development Goals |
SDPI |
Sustainable Development Performance Indicator |
SE |
Societas Europaea |
SEEA |
System of Environmental-Economic Accounting |
SEEA EA |
System of Environmental-Economic Accounting Ecosystem Accounting |
SFDR |
Regulation (EU) 2019/2088 of the European Parliament and of the Council(3) (Sustainable Finance Disclosures Regulation) |
SOX |
Sulphur oxides |
SVHC |
Substances of Very High Concern |
TCFD |
Task Force on Climate-Related Financial Disclosures |
TNFD |
Taskforce on Nature-related Financial Disclosures |
UN |
United Nations |
UNEP |
United Nations Environment Programme |
UNESCO |
United Nations Educational, Scientific and Cultural Organization |
vPvBs |
Very persistent and very bioaccumulative substances |
vPvMs |
Very persistent and very mobile substances |
WDPA |
World Database of Protected Areas |
WRI |
World Resources Institute |
WWF |
World-Wide Fund for Nature |
Defined term |
Definition |
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Actions |
Actions refer to:
|
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Actor in the value chain |
Individuals or entities in the upstream or downstream value chain . The actor is considered downstream from the undertaking (e.g., distributors, customers) when it receives products or services from the undertaking; it is considered upstream from the undertaking (e.g., suppliers ) when it provides products or services that are used in the production of the undertaking’s own products or services. |
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Adequate wage |
A wage that provides for the satisfaction of the needs of the worker and his / her family in the light of national economic and social conditions. |
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Administrative, management and supervisory bodies |
The governance bodies with the highest decision-making authority in the undertaking including its committees. If in the governance structure, there are no members of the administrative, management or supervisory bodies of the undertaking, the CEO, and if such function exists, the deputy CEO, should be included. In some jurisdictions, governance systems consist of two tiers, where supervision and management are separated. In such cases, both tiers are included under the definition of administrative, management and supervisory bodies . |
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Affected Communities |
People or group(s) living or working in the same area that have been or may be affected by a reporting undertaking’s operations or through its upstream and downstream value chain . Affected communities can range from those living adjacent to the undertaking’s operations (local communities) to those living at a distance. Affected communities include actually and potentially affected indigenous peoples . |
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Annual total remuneration |
Annual total remuneration to own workforce includes salary, bonus, stock awards, option awards, non-equity incentive plan compensation, change in pension value, and nonqualified deferred compensation earnings provided over the course of a year. |
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Anticipated financial effects |
Financial effects that do not meet the recognition criteria for inclusion in the financial statement line items in the reporting period and that are not captured by the current financial effects . |
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Area at water risk |
A water catchment, where several physical aspects related to water:
|
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Area of high-water stress |
Regions where the percentage of total water withdrawn is high (40-80%) or extremely high (greater than 80%) in the Aqueduct Water Risk Atlas tool of the World Resources Institute (WRI). See also water scarcity . |
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Associated process materials |
Materials that are needed for the manufacturing process but are not part of the final product, such as lubricants for manufacturing machinery. |
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Best Available Techniques (BAT) conclusions |
A document containing the parts of a BAT reference document laying down the conclusions on best available techniques , their description, information to assess their applicability, the emission levels associated with the best available techniques , the environmental performance levels associated with the best available techniques , the minimum content of an environmental management system including benchmarks associated with the best available techniques , associated monitoring, associated consumption levels and, where appropriate, relevant site remediation measures(5). |
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Best Available Technique-Associated Emission Level (BAT-AEL) |
The range of emission levels obtained under normal operating conditions using a best available technique or a combination of best available techniques , as described in BAT conclusions , expressed as an average over a given period of time, under specified reference conditions, i.e., the emission level that is associated with a BAT . |
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Best Available Technique-Associated Environmental Performance Level (BAT-AEPL) |
The range of environmental performance levels, except emission levels, obtained under normal operating conditions using a BAT or a combination of BAT s(6). |
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Best Available Techniques (BAT) (7) |
The most effective and advanced stage in the development of activities and their methods of operation which indicates the practical suitability of particular techniques for providing the basis for emission limit values and other permit conditions designed to prevent and, where that is not practicable, to reduce emissions and the impact on the environment as a whole:
|
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Biodiversity loss |
The reduction of any aspect of biological diversity (i.e., diversity at the genetic, species and ecosystem levels) in a particular area through death (including extinction), destruction or physicalmanual removal; it can refer to many scales, from global extinctions to population extinctions, resulting in decreased total diversity at the same scale. |
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Biodiversity or biological diversity |
The variability among living organisms from all sources including terrestrial, marine and other aquatic ecosystems and the ecological complexes of which they are a part. This includes variation in genetic, phenotypic, phylogenetic, and functional attributes, as well as changes in abundance and distribution over time and space within and among species, biological communities and ecosystems . |
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Biodiversity sensitive area |
Natura 2000 network of protected areas , UNESCO World Heritage sites and Key Biodiversity Areas (‘KBAs’), as well as other protected areas , as referred to in Appendix D of Annex II to Commission Delegated Regulation (EU) 2021/2139(8). |
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Biosphere integrity or ecological integrity |
The ability of an ecosystem to support and maintain ecological processes and a diverse community of organisms. |
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Blue economy |
The blue economy encompasses all industries and sectors related to oceans, seas and coasts, whether they are based in the marine environment (e.g., shipping, fisheries, energy generation) or on land (e.g. ports, shipyards, land-based aquaculture and algae production, coastal tourism). |
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BREF or EU Best Available Techniques reference documents |
A document resulting from the exchange of information organised pursuant to Article 13 of Directive 2010/75/EU of the European Parliament and of the Council(9) on industrial emissions , drawn up for defined activities and describing, in particular, applied techniques, present emissions and consumption levels, techniques considered for the determination of best available techniques as well as BAT conclusions and any emerging techniques, giving special consideration to the criteria listed in Annex III of Directive 2010/75/EU. |
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Bribery |
Dishonestly persuading someone to act in your favour by giving them a gift of money or another inducement. |
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Business model |
The undertaking’s system of transforming inputs through its activities into outputs and outcomes that aims to fulfil the undertaking’s strategic purposes and create value over the short-, medium- and long-term. ESRS use the term “ business model ” in the singular, although it is recognised that undertakings may have more than one business model. |
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Business relationships |
The relationships the undertaking has with business partners, entities in its value chain , and any other non-State or State entity directly linked to its business operations, products or services. Business relationships are not limited to direct contractual relationships. They include indirect business relationships in the undertaking’s value chain beyond the first tier, and shareholding positions in joint ventures or investments. |
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By-product |
A substance or object resulting from a production process the primary aim of which is not the production of that substance or object is considered not to be waste , but to be a by-product if the following conditions are met:
|
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Carbon credit |
A transferable or tradable instrument that represents one metric tonne of CO2eq emission reduction or removal and is issued and verified according to recognised quality standards. |
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Carbon dioxide (CO2) equivalent (eq) |
The universal unit of measurement to indicate the global warming potential ( GWP ) of each greenhouse gas, expressed in terms of the GWP of one unit of carbon dioxide. It is used to evaluate releasing (or avoiding releasing) different greenhouse gases on a common basis. |
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Child labour |
Work that deprives children of their childhood, their potential and their dignity, and that is harmful to physical and mental development. It refers to work that:
A child is defined as a person under the age of 18. Whether or not particular forms of ‘work’ can be called ‘ child labour’ depends on the child’s age, the type and hours of work performed and the conditions under which it is performed. The answer varies from country to country, as well as among sectors within countries. The minimum age of work should not be less than the minimum age of completion of compulsory schooling, and, in any case, should not be less than 15 years according to International Labour Organisation (ILO) Convention No. 138 on Minimum Age. Exceptions can occur in certain countries where economies and educational facilities are insufficiently developed, and a minimum age of 14 years applies. These countries of exception are specified by the International Labour Organisation (ILO) in response to a special application by the country concerned and in consultation with representative organisations of employers and workers. National laws may permit the employment of persons 13 to 15 years of age in light work as long as it is not likely to be harmful to their health or development and does not prejudice their attendance at school or participation in vocational or training programmes. The minimum age for admission into work which by its nature or the circumstances in which it is carried out is likely to jeopardise the health, safety or morals of young persons shall not be less than 18 years. |
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Circular economy |
An economic system in which the value of products, materials and other resources in the economy is maintained for as long as possible, enhancing their efficient use in production and consumption, thereby reducing the environmental impact of their use, minimising waste and the release of hazardous substances at all stages of their life cycle, including through the application of the waste hierarchy . |
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Circular economy principles |
The European circular economy principles are:
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Circular material use rate |
Recirculation of materials, components and products in practice after first use employing the following strategies (in order of preference):
The use rate is defined as the ratio of circular use of materials to overall use of materials. |
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Classified information |
EU classified information as defined in Council Decision 2013/488/EU(10) on the security rules for protecting EU classified information or classified by one of the Member States and marked as per Appendix B of that Council decision. |
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Climate change adaptation |
The process of adjustment to actual and expected climate change and its impacts . |
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Climate change mitigation |
The process of reducing GHG emissions and holding the increase in the global average temperature to 1,5 °C above pre-industrial levels, in line with the Paris Agreement. |
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Climate resilience |
The capacity of an undertaking to adjust to climate changes, and to developments or uncertainties related to climate change. Climate resilience involves the capacity to manage climate-related Scope 1 and benefit from climate-related opportunities , including the ability to respond and adapt to transition risks and physical risks . An undertaking’s climate resilience includes both its strategic resilience and its operational resilience to climate-related changes, developments or uncertainties associated with climate change. |
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Climate-related opportunity |
Potential positive effects related to climate change for the undertaking. Efforts to mitigate and adapt to climate change can produce opportunities for undertakings. Climate-related opportunities will vary depending on the region, market, and industry where an undertaking operates. |
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Climate-related physical risk (Physical risk from climate change) |
Risks resulting from climate change that can be event-driven (acute) or from longer-term shifts (chronic) in climate patterns. Acute physical risks arise from particular hazards, especially weather-related events such as storms, floods, fires or heatwaves. Chronic physical risks arise from longer-term changes in the climate, such as temperature changes, and their effects on rising sea levels, reduced water availability, biodiversity loss and changes in land and soil productivity. |
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Climate-related transition risk |
Risks that arise from the transition to a low-carbon and climate-resilient economy. They typically include policy risks , legal risks , technology risks , market risks and reputational risks . |
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Collective bargaining |
All negotiations which take place between an employer, a group of employers or one or more employers' organisations, on the one hand, and one or more trade unions or, in their absence, the representatives of the workers duly elected and authorised by them in accordance with national laws and regulations, on the other, for:
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Confirmed incident (child or forced labour or human trafficking) |
Incident of child or forced labour or human trafficking that has been found to be substantiated. Confirmed incidents do not include incidents of child or forced labour or human trafficking that are still under investigation in the reporting period. |
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Confirmed incident of corruption or bribery |
An incident of corruption or bribery that has been found to be substantiated. Confirmed incidents of corruption or bribery do not include incidents of corruption or bribery that are still under investigation at the end of the reporting period. The determination of potential non-compliance cases as substantiated may be made either by the undertaking’s compliance officer or similar function or an authority. A determination as substantiated by a court of law is not required. |
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Consumer |
Individuals who acquire, consume or use goods and services for personal use, either for themselves or for others, and not for resale, commercial or trade, business, craft or profession purposes. |
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Corporate culture |
Corporate culture expresses goals through values and beliefs. It guides the undertaking’s activities through shared assumptions and group norms such as values or mission statements or a code of conduct. |
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Corruption |
Abuse of entrusted power for private gain, which can be instigated by individuals or organisations. It includes practices such as facilitation payments, fraud, extortion, collusion, and money laundering. It also includes an offer or receipt of any gift, loan, fee, reward, or other advantage to or from any person as an inducement to do something that is dishonest, illegal, or a breach of trust in the conduct of the undertaking’s business. This can include cash or in-kind benefits, such as free goods, gifts, and holidays, or special personal services provided for the purpose of an improper advantage, or that can result in moral pressure to receive such an advantage. |
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Credible proxies |
Individuals with sufficiently deep experience in engaging with affected stakeholders from a particular region or context (for example, women workers on farms, indigenous peoples or migrant workers) who can help to effectively convey their likely concerns. In practice, this can include development and human rights NGOs, international trade unions and local civil society, including faith-based organisations. |
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Current financial effects |
Financial effects for the current reporting period that are recognised in the primary financial statements. |
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Decarbonisation levers |
Aggregated types of mitigation actions such as energy efficiency, electrification, fuel switching, use of renewable energy , products change, and supply-chain decarbonisation that fit with undertakings' specific actions . |
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Deforestation |
Temporary or permanent human-induced conversion of forested land to non-forested land(11). |
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Degradation or degraded ecosystem |
Chronic human impacts resulting in the loss of biodiversity and the disruption of an ecosystem ’s structure, composition, and functionality. |
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Dependencies |
The situation of an undertaking being dependent on natural, human and/or social resources for its business processes. |
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Deposit in water and soil |
An amount of a substance that has accumulated in the environment, either in water or in soil , and either as a consequence of regular activities or from incidents or from disposals of undertakings, independent of whether that accumulation occurs at the production site of an undertaking or outside. |
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Desertification |
Land degradation in arid, semi-arid and dry sub-humid areas resulting from various factors, including climatic variations and human activities. Desertification does not refer to the natural expansion of existing deserts. |
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Discharge |
Wastewater discharge means the amount of water (in m3) or substance (in kg BOD/d or comparable) added / leached to a water body from a point or a non-point source. Sewage effluent (or discharge ) means treated sewage discharged from a sewage treatment plant. |
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Discrimination |
Discrimination can occur directly or indirectly. Direct discrimination occurs when an individual is treated less favourably by comparison to how others, who are in a similar situation, have been or would be treated, and the reason for this is a particular characteristic they hold, which falls under a ‘protected ground’. Indirect discrimination occurs when an apparently neutral rule disadvantages a person or a group sharing the same characteristics. It must be shown that a group is disadvantaged by a decision when compared to a comparator group. |
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Double materiality |
Double materiality has two dimensions: impact materiality and financial materiality . A sustainability matter meets the criterion of double materiality if it is material from the impact perspective or the financial perspective or both. |
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Durability of a product, component or material |
The ability of a product, component or material to remain functional and relevant when used as intended. |
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Ecological threshold |
The point at which a relatively small change in external conditions causes a rapid change in an ecosystem . When an ecological threshold has been passed, the ecosystem may no longer be able to return to its state by means of its inherent resilience. |
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Ecosystem extent |
The size of an ecosystem asset, whereas an ecosystem asset is the contiguous space of a specific ecosystem type characterised by a distinct set of biotic and abiotic components and their interactions. |
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Ecosystem restoration |
Any intentional activities that initiate or accelerate the recovery of an ecosystem from a degraded state. |
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Ecosystem services |
The contributions of ecosystems to the benefits that are used in economic and other human activity, respectively the benefits people obtain from ecosystems . In the Millennium Ecosystem Assessment, ecosystem services can be divided into supporting, regulating, provisioning and cultural. The Common International Classification of Ecosystem Services (CICES) classifies types of ecosystems services. |
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Ecosystem(s) |
A dynamic complex of plant, animal and micro-organism communities and their non-living environment interacting as a functional unit. A typology of ecosystems is provided by the IUCN Global Ecosystem Typology 2.0. |
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Emission |
The direct or indirect release of substances , vibrations, heat or noise from individual or diffuse sources into air, water or soil (12). |
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Employee |
An individual who is in an employment relationship with the undertaking according to national law or practice. |
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End-users |
Individuals who ultimately use or are intended to ultimately use a particular product or service. |
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Equal opportunities |
Equal and non-discriminatory access, among individuals, to opportunities for education, training, employment, career development and the exercise of power without their being disadvantaged on the basis of criteria such as gender, racial or ethnic origin, nationality, religion or belief, disability, age or sexual orientation. |
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Equal treatment |
The principle of equal treatment is a general principle of European law which presupposes that comparable situations or parties in comparable situations are treated in the same way. In the context of ESRS S1, the term “ equal treatment ” also refers to the principle of non-discrimination, according to which there shall be no direct or indirect discrimination based on any ground such as sex, race, colour, ethnic or social origin, genetic features, language, religion or belief, political or any other opinion, membership of a national minority, property, birth, disability, age or sexual orientation. |
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Financial effects |
Effects from risks and opportunities that affect the undertaking’s financial position, financial performance and cash flows over the short, medium or long term. |
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Financial materiality |
A sustainability matter is material from a financial perspective if it generates risks or opportunities that affect (or could reasonably be expected to affect) the undertaking’s financial position, financial performance, cash flows, access to finance or cost of capital over the short, medium or long term. |
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Forced labour |
All work or service which is exacted from any person under the threat of penalty and for which the person has not offered himself or herself voluntarily. The term encompasses all situations in which persons are coerced by any means to perform work and includes both traditional ‘slave-like’ practices and contemporary forms of coercion where labour exploitation is involved, which may include human trafficking and modern slavery. |
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Fossil fuel |
Non-renewable carbon-based energy sources such as solid fuels, natural gas and oil. |
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Free, Prior and Informed Consent (FPIC) |
A manifestation of indigenous peoples ’ right to self-determine their political, social, economic and cultural priorities. It constitutes three interrelated and cumulative rights of indigenous peoples : the right to be consulted; the right to participate; and the right to their lands, territories and resources. FPIC pertains to indigenous peoples and is recognized under international human rights law, notably the United Nations Declaration on the Rights of Indigenous Peoples (UNDRIP). |
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Freshwater |
Groundwater and surface water, with a mean annual salinity of < 0,5 ‰ (i.e., the limit mentioned in Annex II of the Water Framework Directive). |
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GHG emission reduction |
Decrease in the undertaking’s Scope 1, 2, 3 or total GHG emissions at the end of the reporting period, relative to emissions in the base year. Emission reductions may result from, among others, energy efficiency, electrification, suppliers ' decarbonisation, electricity mix decarbonisation, sustainable products development or changes in reporting boundaries or activities (e.g., outsourcing, reduced capacities), provided they are achieved within the undertaking's own operations and upstream and downstream value chain . Removals and avoided emissions are not counted as emission reductions . |
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GHG removal and storage |
(Anthropogenic) removals refer to the withdrawal of GHGs from the atmosphere as a result of deliberate human activities. These include enhancing biological anthropogenic sinks of CO2 and using chemical engineering to achieve long-term removal and storage. Carbon capture and storage (CCS) from industrial and energy-related sources, which alone does not remove CO2 from the atmosphere, can remove atmospheric CO2 if it is combined with bioenergy production (Bioenergy with Carbon Capture & Storage - BECCS). Removals can be subject to reversals, which are any movement of stored GHG out of the intended storage that re-enters the atmosphere. For example, if a forest that was grown to remove a specific amount of CO2 is subject to a wildfire, the emissions captured in the trees are reversed. |
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Global warming potential (GWP) |
A factor describing the radiative forcing impact (degree of harm to the atmosphere) of one unit of a given GHG relative to one unit of CO2. |
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Greenhouse Gases (GHG) |
The gases listed in Part 2 of Annex V of Regulation (EU) 2018/1999 of the European Parliament and of the Council(13). These include Carbon dioxide (CO2), Methane (CH4), Nitrous Oxide (N2O), Sulphur hexafluoride (SF6), Nitrogen trifluoride (NF3), Hydrofluorocarbons (HFCs), Perfluorocarbons (PFCs). |
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Grievance mechanism |
Any routinized, state-based or non-state-based, judicial or non-judicial processes through which stakeholders can raise grievances and seek remedy . Examples of state-based judicial and non-judicial grievance mechanisms include courts, labour tribunals, national human rights institutions, National Contact Points under the OECD Guidelines for Multinational Enterprises, ombudsperson offices, consumer protection agencies, regulatory oversight bodies, and government-run complaints offices. Non-state-based grievance mechanisms include those administered by the undertaking, either alone or together with stakeholders , such as operational-level grievance mechanisms and collective bargaining , including the mechanisms established by collective bargaining . They also include mechanisms administered by industry associations, international organisations, civil society organisations, or multi-stakeholder groups. Operational-level grievance mechanisms are administered by the organisation either alone or in collaboration with other parties and are directly accessible by the organisation’s stakeholders . They allow for grievances to be identified and addressed early and directly, thereby preventing both harm and grievances from escalating. They also provide important feedback on the effectiveness of the organisation’s due diligence from those who are directly affected. According to UN Guiding Principle 31, effective grievance mechanisms are legitimate, accessible, predictable, equitable, transparent, rights-compatible, and a source of continuous learning. In addition to these criteria, effective operational-level grievance mechanisms are also based on engagement and dialogue. It can be more difficult for the organisation to assess the effectiveness of grievance mechanisms that it participates in compared to those it has established itself. |
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Groundwater |
All water which is below the surface of the ground in the saturation zone and in direct contact with the ground or subsoil(14). |
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Habitat |
The place or type of site where an organism or population naturally occurs. Also used to mean the environmental attributes required by a particular species or its ecological niche. |
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Habitat fragmentation |
A general term describing the set of processes by which habitat loss results in the division of continuous habitats into a greater number of smaller patches of lesser total size and isolated from each other by a matrix of dissimilar habitats . Habitat fragmentation may occur through natural processes (e.g., forest and grassland fires, flooding) and through human activities (forestry, agriculture, urbanisation). |
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Harassment |
A situation where an unwanted conduct related to a protected ground of discrimination (for example, gender under Directive 2006/54/EC of the European Parliament and of the Council(15), or religion or belief, disability, age or sexual orientation under Council Directive 2000/78/EC(16)) occurs with the purpose or effect of violating the dignity of a person, and of creating an intimidating, hostile, degrading, humiliating or offensive environment. |
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Hazardous waste |
Waste which displays one or more of the hazardous properties listed in Annex III of Directive 2008/98/EC of the European Parliament and of the Council(17) on waste . |
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High climate impact sectors |
Sectors that are listed in Sections A to H and Section L of Annex I to Regulation (EC) No 1893/2006 of the European Parliament and of the Council(18) (as defined in Commission Delegated Regulation (EU) 2022/1288(19)). |
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Impacts |
The effect the undertaking has or could have on the environment and people, including effects on their human rights, connected with its own operations and upstream and downstream value chain , including through its products and services, as well as through its business relationships . The impacts can be actual or potential, negative or positive, intended or unintended, and reversible or irreversible. They can arise over the short-, medium-, or long-term. Impacts indicate the undertaking’s contribution, negative or positive, to sustainable development. |
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Impact drivers |
All the factors that cause changes in nature, anthropogenic assets, nature’s contributions to people and a good quality of life. Direct drivers of change can be both natural and anthropogenic. They have direct physical (mechanical, chemical, noise, light etc.) and behaviour-affecting impacts on nature. They include, inter alia, climate change, pollution , different types of land use change, invasive alien species and zoonoses, and exploitation. Indirect impact drivers operate diffusely by altering and influencing direct drivers (by affecting their level, direction or rate) as well as other indirect drivers. Interactions between indirect and direct drivers create different chains of relationship, attribution, and impacts , which may vary according to type, intensity, duration, and distance. These relationships can also lead to different types of spill-over effects. Global indirect drivers include economic, demographic, governance, technological and cultural ones. Special attention is given, among indirect drivers, to the role of institutions (both formal and informal) and impacts of the patterns of production, supply and consumption on nature, nature’s contributions to people and good quality of life. |
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Impact materiality |
A sustainability matter is material from an impact perspective when it pertains to the undertaking’s material actual or potential, positive or negative impacts on people or the environment over the short-, medium- and long-term. A material sustainability matter from an impact perspective includes impacts connected with the undertaking’s own operations and upstream and downstream value chain , including through its products and services, as well as through its business relationships . |
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Incident |
A legal action or complaint registered with the undertaking or competent authorities through a formal process, or an instance of non-compliance identified by the undertaking through established procedures. Established procedures to identify instances of non-compliance can include management system audits, formal monitoring programs, or grievance mechanisms . |
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Incineration |
The controlled burning of waste at high temperature with or without energy recovery. |
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Independent board member |
Board members that exercise independent judgment free from any external influence or conflicts of interest. Independence generally means the exercise of objective, unfettered judgement. When used as the measure by which to judge the appearance of independence, or to categorise a non-executive member of the administrative, management and supervisory bodies or their committees as independent, it means the absence of an interest, position, association or relationship which, when judged from the perspective of a reasonable and informed third party, is likely to influence unduly or cause bias in decision-making. |
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Indigenous peoples |
There is no single definition for indigenous peoples agreed on at the international level. In practice, there is convergence among international agencies on what groups can be considered indigenous peoples and should enjoy special protection as such. An important criteria for defining indigenous people is related to their connection to a traditional area, as defined in ILO Convention No. 169, Article 1, which states that the convention applies to: “(a) tribal peoples in independent countries whose social, cultural and economic conditions distinguish them from other sections of the national community, and whose status is regulated wholly or partially by their own customs or traditions or by special laws or regulations; (b) peoples in independent countries who are regarded as indigenous on account of their descent from the populations which inhabited the country, or a geographical region to which the country belongs, at the time of conquest or colonisation or the establishment of present state boundaries and who, irrespective of their legal status, retain some or all of their own social, economic, cultural and political institutions”. ILO Convention 169 also states in Article 1(2) that: “[s]elf-identification as indigenous or tribal shall be regarded as a fundamental criterion for determining the groups to which the provisions of this Convention apply”. |
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Indirect GHG emissions |
GHG emissions that are a consequence of the activities of an entity but occur at sources owned or controlled by another entity. Indirect emissions are Scope 2 GHG emissions and scope 3 GHG emissions combined. |
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Installation |
A stationary technical unit within which one or more activities are carried out which could have an effect on emissions and pollution . |
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Internal carbon price |
Price used by an undertaking to assess the financial implications of changes to investment, production, and consumption patterns, and of potential technological progress and future emissions abatement costs. |
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Internal carbon pricing scheme |
An organisational arrangement that allows an undertaking to apply carbon prices in strategic and operational decision making. There are two types of internal carbon prices commonly used by undertakings. The first type is a shadow price, which is a theoretical cost or notional amount that the undertaking does not charge but that can be used in assessing the economic implications or trade-offs for such things as risk impacts , new investments, net present value of projects, and the cost-benefit of various initiatives. The second type is an internal tax or fee, which is a carbon price charged to a business activity, product line, or other business unit based on its GHG emissions (these internal taxes or fees are similar to intracompany transfer pricing). |
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Invasive or alien species |
Species whose introduction and/or spread by human action outside their natural distribution threatens biological diversity , food security, and human health and well-being. “Alien’ refers to the species’ having been introduced outside its natural distribution (“exotic’, “non-native’ and “non-indigenous’ are synonyms for “alien’). “Invasive’ means “tending to expand into and modify ecosystems to which it has been introduced’. Thus, a species may be alien without being invasive, or, in the case of a species native to a region, it may increase and become invasive, without actually being an alien species. |
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Key Biodiversity Area (KBA) |
Sites contributing significantly to the global persistence of biodiversity ’, in terrestrial, freshwater and marine ecosystems . Sites qualify as global KBAs if they meet one or more of 11 criteria, clustered into five categories: threatened biodiversity ; geographically restricted biodiversity ; ecological integrity ; biological processes; and, irreplaceability. The World Database of KBAs is managed by BirdLife International on behalf of the KBA Partnership. |
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Land degradation |
The many processes that drive the decline or loss in biodiversity , ecosystem functions or their benefits to people and includes the degradation of all terrestrial ecosystems . |
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Landfill |
A waste disposal site for the deposit of the waste onto or into land(20). |
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Land-system (change) |
The terrestrial component of the Earth system, encompassing all processes and activities related to the human use of land. These include socio-economic, technological and organisational inputs and arrangements, as well as the benefits gained from land and the unintended social and ecological outcomes of societal activities. The land-systems concept combines land-use (the activities, arrangements and inputs associated with land-use) with land cover (the ensemble of physical characteristics of land discernible by Earth Observation). |
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Land-use (change) |
The human use of a specific area for a certain purpose (such as residential; agriculture; recreation; industrial, etc.). Influenced by, but not synonymous with, land cover. Land-use change refers to a change in the use or management of land by humans, which may lead to a change in land cover. |
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Legitimate representatives |
Individuals recognised as legitimate under law or practice, such as elected trade union representatives in the case of workers, or other similarly freely chosen representatives of affected stakeholders . |
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Leverage |
The ability of the undertaking to effect a change in the wrongful practices of another party that is connected with a negative sustainability-related impact. |
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Lobbying activities |
Activities carried out with the objective of influencing the formulation or implementation of policy or legislation, or the decision-making processes of governments, governmental institutions, regulators, European Union institutions, bodies, offices and agencies or standard setters. Such activities include (non-exhaustive list):
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Locked-in GHG emissions |
Estimates of future GHG emissions that are likely to be caused by an undertaking’s key assets or products sold within their operating lifetime. |
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Longevity |
Designed for maintenance and durability in such a way that encourages longer use than the industry standard in practice and at scale and in such a way that does not compromise circular treatment at the end of functional life. |
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Marine resources |
Biological and non-biological resources found in the seas and oceans. Examples include but are not limited to deep sea minerals, gravels, and seafood products |
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Material opportunities |
Sustainability related opportunities with positive financial effects that materially affect, (or could reasonably be expected to affect) the undertaking’s cash flows, access to finance, or cost of capital over the short, medium or long term. |
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Material risks |
Sustainability related risks with negative financial effects that materially affect (or could reasonably be expected to affect) the undertaking’s cash flows, access to finance, or cost of capital over the short, medium or long term. |
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Materiality |
A sustainability matter is material if it meets the definition of impact materiality , financial materiality , or both. |
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Metrics |
Qualitative and quantitative indicators that the undertaking uses to measure and report on the effectiveness of the delivery of its sustainability-related policies and against its targets over time. Metrics also support the measurement of the undertaking’s results in respect of affected people, the environment and the undertaking. |
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Microplastics |
Small pieces of plastics, usually smaller than 5mm. A growing volume of microplastics is found in the environment, including the sea, and in food and drinking water. Once in the environment, microplastics do not biodegrade and tend to accumulate, unless they are specifically designed to biodegrade in the open environment. Biodegradability is a complex phenomenon, especially in the marine environment. There are increasing concerns about the presence of microplastics in different environment compartments (such as water), their impact on the environment and potentially human health. |
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Minimum Disclosure Requirement |
A minimum disclosure requirement sets the required content of the information that the undertaking includes when it reports on policies, actions , metrics or targets , either pursuant to a Disclosure Requirement in an ESRS or on an entity-specific basis. |
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Natural resources |
Natural assets ( raw materials ) occurring in nature that can be used for economic production or consumption. |
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Nature-based solutions |
Actions to protect, conserve, restore, sustainably use and manage natural or modified terrestrial, freshwater , coastal and marine ecosystems which address social, economic and environmental challenges effectively and adaptively, while simultaneously providing human well-being, ecosystem services , resilience and biodiversity benefits. |
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Net-zero target |
Setting a net-zero target at the level of an undertaking aligned with meeting societal climate goals means:
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Non-employees |
Non-employees in an undertaking’s own workforce include both individual contractors supplying labour to the undertaking (“self-employed people”) and people provided by undertakings primarily engaged in “employment activities” (NACE Code N78). |
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Non-renewable energy |
Energy which cannot be identified as being derived from renewable sources. |
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Operational control |
Operational control (over an entity, site , operation or asset) is the situation where the undertaking has the ability to direct the operational activities and relationships of the entity, site , operation or asset. |
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Opportunities |
Sustainability-related opportunities with positive financial effects. |
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Overtime |
The number of hours actually worked by a worker in excess of his or her contractual hours of work. |
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Own workforce/own workers |
Employees who are in an employment relationship with the undertaking (‘ employees ’) and non-employees who are either individual contractors supplying labour to the undertaking (‘self-employed people’) or people provided by undertakings primarily engaged in ‘employment activities’ (NACE Code N78). |
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Ozone-depleting substances |
Substances listed in the Montreal Protocol on Substances that Deplete the Ozone Layer. |
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Packaging |
Products made of any materials of any nature to be used for the containment, protection, handling, delivery, storage, transport and presentation of goods, from raw materials to processed goods, from the producer to the user or consumer (21). |
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Pay |
The ordinary basic or minimum wage or salary and any other remuneration, whether in cash or in kind which the worker receives directly or indirectly (‘complementary or variable components’), in respect of his/her employment from his/her employer. ‘ Pay level’ means gross annual pay and the corresponding gross hourly pay. ‘Median pay level’ means the pay of the employee that would have half of the employees earn more and half less than they do. |
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Persons with disabilities |
Persons who have long-term physical, mental, intellectual or sensory impairments which in interaction with various barriers may hinder their full and effective participation in society on an equal basis with others. |
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Physical risks |
All global economic enterprise depends on the functioning of earth systems, such as a stable climate and on ecosystem services , such as the provision of biomass ( raw materials ). Nature-related physical risks are a direct result of an organisation’s dependence on nature. Physical risks arise when natural systems are compromised, due to the impact of climatic events (e.g., extremes of weather such as a drought), geologic events (e.g., seismic events such as an earthquake) events or changes in ecosystem equilibria, such as soil quality or marine ecology, which affect the ecosystem services organisations depend on. These can be acute, chronic, or both. Nature-related physical risks arise as a result of changes in the biotic (living) and abiotic (non-living) conditions that support healthy, functioning ecosystems . Physical risks are usually location-specific. Nature-related physical risks are often associated with climate-related physical risks . |
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Planetary boundaries |
This concept allows to estimate a safe operating space for humanity with respect to the functioning of the Earth. The boundary level for each key Earth System process that should not be transgressed if we are to avoid unacceptable global environmental change, is quantified. |
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Policy |
A set or framework of general objectives and management principles that the undertaking uses for decision-making. A policy implements the undertaking’s strategy or management decisions related to a material sustainability matter. Each policy is under the responsibility of defined person(s), specifies its perimeter of application, and includes one or more objectives (linked when applicable to measurable targets ). A policy is validated and reviewed following the undertakings’ applicable governance rules. A policy is implemented through actions or action plans. |
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Pollutant |
A substance , vibration, heat, noise, light or other contaminant present in air, water or soil which may be harmful to human health and/or the environment, which may result in damage to material property, or which may impair or interfere with amenities and other legitimate uses of the environment(22). |
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Pollution |
The direct or indirect introduction, as a result of human activity, of pollutants into air, water or soil which may be harmful to human health and/or the environment, which may result in damage to material property, or which may impair or interfere with amenities and other legitimate uses of the environment(23). |
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Pollution of soil |
The introduction into soil – independent of whether that introduction occurs at the production site of an undertaking or outside or through the use of the undertaking’s products and/or services – as a result of human activity, of substances , vibrations, heat or noise which may be harmful to human health or the environment, result in damage to material property, or impair or interfere with amenities and other legitimate uses of the environment(24). Soil pollutants include inorganic pollutants , persistent organic pollutants (POPs), pesticides, nitrogen and phosphorus compounds, etc. |
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Protected area |
A clearly defined geographical space, recognised, dedicated and managed, through legal or other effective means, to achieve the long-term conservation of nature with associated ecosystem services and cultural values. |
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Purchased or acquired electricity, heat, steam, or cooling |
When the undertaking has received its electricity, heat, steam, or cooling from a third party. The term “acquired” reflects circumstances where a company may not directly purchase electricity (e.g., a tenant in a building), but where the energy is brought into the undertaking’s facility for use. |
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Raw material |
Primary or secondary material that is used to produce a product. |
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Recognised quality standards for carbon credits |
Quality standards for carbon credits that are verifiable by independent third parties, make requirements and project reports publicly available and at a minimum ensure additionality, permanence, avoidance of double counting and provide rules for calculation, monitoring, and verification of the project’s GHG emissions and removals. |
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Recordable work-related injury or ill health |
Work-related injury or ill health that results in any of the following:
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Recovery |
Any operation the principal result of which is waste serving a useful purpose by replacing other materials which would otherwise have been used to fulfil a particular function, or waste being prepared to fulfil that function, in the plant or in the wider economy(25). |
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Recycling |
Any recovery operation by which waste materials are reprocessed into products, materials or substances whether for the original or other purposes. It includes the reprocessing of organic material but does not include energy recovery and the reprocessing into materials that are to be used as fuels or for backfilling operations. |
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Resource regeneration |
Promotion of self-renewal capacity of natural systems with the aim of reactivating ecological processes damaged or over-exploited by human action. |
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Remedy/remediation |
To counteract or make good a negative impact. Examples: apologies, financial or non-financial compensation, prevention of harm through injunctions or guarantees of non-repetition, punitive sanctions (whether criminal or administrative, such as fines), restitution, restoration, rehabilitation. |
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Renewable energy |
Energy from renewable non-fossil sources, namely wind, solar (solar thermal and solar photovoltaic) and geothermal energy, ambient energy, tide, wave and other ocean energy, hydropower, biomass, landfill gas, sewage treatment plant gas, and biogas(26). |
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Renewable materials |
Materials that are derived from resources that are quickly replenished by ecological cycles or agricultural processes, so that the services provided by these and other linked resources are not endangered and remain available for the next generation. |
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Resource inflows |
Resource that enters the undertaking’s facilities. |
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Resource outflows |
Resource that leaves the undertaking’s facilities. |
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Resource use optimisation |
The design, production and distribution of materials and products with the objective to keep them in use at their highest value. Eco-design and design for longevity , repair, reuse , repurposing, disassembly, remanufacturing are examples of tools to optimise resource use. |
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Reuse |
Any operation by which products and components that are not waste are used again for the same purpose for which they were conceived. This may involve cleaning or small adjustments so it is ready for the next use without significant modification. |
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River basin |
The area of land from which all surface run-off flows through a sequence of streams, rivers and, possibly, lakes into the sea at a single river mouth, estuary or delta. |
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Risks |
Sustainability-related risks with negative financial effects arising from environmental, social or governance matters that may negatively affect the undertaking's financial position, financial performance, cash flows, access to finance or cost of capital in the short, medium or long term. |
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Scenario |
A plausible description of how the future may develop based on a coherent and internally consistent set of assumptions about key driving forces (e.g., rate of technological change, prices) and relationships. Note that scenarios are neither predictions nor forecasts but are used to provide a view of the implications of developments and actions . |
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Scenario analysis |
A process for identifying and assessing a potential range of outcomes of future events under conditions of uncertainty. |
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Scope 1 GHG emissions |
Direct GHG emissions from sources that are owned or controlled by the undertaking. |
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Scope 2 GHG emissions |
Indirect emissions from the generation of purchased or acquired electricity, steam, heat or cooling consumed by the undertaking. |
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Scope 3 GHG emissions |
All indirect GHG emissions (not included in scope 2 GHG emissions ) that occur in the value chain of the reporting undertaking, including both upstream and downstream emissions . Scope 3 GHG emissions can be broken down into scope 3 categories . |
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Scope 3 category |
One of the 15 types of Scope 3 GHG emissions identified by the GHG Protocol Corporate Standard and detailed by the GHG Protocol Corporate Value Chain ( Scope 3 ) Accounting and Reporting Standard (adapted from GHG Protocol Corporate Value Chain ( Scope 3 ) Accounting and Reporting Standard, Glossary (Version 2011). Undertakings that choose to account for their Scope 3 emissions based on the indirect GHG emissions categories of ISO 14064-1:2018 may also refer to the category defined in clause 5.2.4 (excluding indirect GHG emissions from imported energy) of ISO 14064-1:2018. |
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Sensitive information |
Sensitive information as defined in Regulation (EU) 2021/697 of the European Parliament and of the Council(27) establishing the European Defence Fund. |
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Site |
The location of one or more physical installations . If there is more than one physical installation from the same or different owners or operators and certain infrastructure and facilities are shared, the entire area where the physical installation are located may constitute a site . |
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Social dialogue |
All types of negotiation, consultation or simply exchange of information between, or among, representatives of governments, employers, their organisations and workers’ representatives , on issues of common interest relating to economic and social policy. It can exist as a tripartite process, with the government as an official party to the dialogue or it may consist of bipartite relations only between workers' representatives and management (or trade unions and employers' organisations). |
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Social protection |
The set of measures designed to reduce and prevent poverty and vulnerability across the life cycle. |
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Soil |
The top layer of the Earth’s crust situated between the bedrock and the surface. The soil is composed of mineral particles, organic matter, water, air and living organisms(28). |
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Soil degradation |
The diminishing capacity of the soil to provide ecosystem goods and services as desired by its stakeholders . |
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Soil sealing |
Covering soil in a way that makes the covered area impermeable (e.g. a road). This non-permeability can create environmental impacts as described in Commission Regulation (EU) 2018/2026(29). |
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Specific loads |
Mass of pollutant released per mass of product manufactured. Specific loads allow for the comparison of the environmental performance of installations irrespective of their different production volumes and are not influenced by mixing or dilution(30). |
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Stakeholder engagement |
An ongoing process of interaction and dialogue between the undertaking and its stakeholders that enables the undertaking to hear, understand and respond to their interests and concerns. |
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Stakeholders |
Those who can affect or be affected by the undertaking. There are two main groups of stakeholders :
Some, but not all, stakeholders may belong to the two groups. |
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Substances |
Any chemical element and its compounds, with the exception of the following substances :
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Substances of concern |
A substance that:
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Substances of Very High Concern (SVHCs) |
Substances that meet the criteria laid down in Article 57 of Regulation (EC) No 1907/2006 (REACH) and were identified in accordance with Article 59(1) of that Regulation. |
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Supplier |
Entity upstream from the organisation (i.e., in the organisation’s supply chain ), which provides a product or service that is used in the development of the organisation’s own products or services. A supplier can have a direct business relationship with the organisation (often referred to as a first-tier supplier ) or an indirect business relationship. |
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Supply chain |
The full range of activities or processes carried out by entities upstream from the undertaking, which provide products or services that are used in the development and production of the undertaking’s own products or services. This includes upstream entities with which the undertaking has a direct relationship (often referred to as a first-tier supplier ) and entities with which the undertaking has an indirect business relationship. |
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Surface water |
Inland waters, except groundwater ; transitional waters and coastal waters, except in respect of chemical status for which it shall also include territorial waters(37). |
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Sustainability matters |
Environmental, social and human rights, and governance factors, including sustainability factors defined in Article 2, point (24), of Regulation (EU) 2019/2088 of the European Parliament and of the Council(38). |
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Sustainability statement |
The dedicated section of the undertaking’s management report where the information about sustainability matters prepared in compliance with Directive 2013/34/EU of the European Parliament and of the Council(39) and the ESRS is presented. |
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Sustainability-related opportunities |
Uncertain environmental, social or governance events or conditions that, if they occur, could cause a potential material positive effect on the undertaking's business model , or strategy on its capability to achieve its goals and targets and to create value, and therefore may influence its decisions and those of its business relationship partners with regard to sustainability matters . Like any other opportunity , sustainability-related opportunities are measured as a combination of an impact’s magnitude and the probability of occurrence. |
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Sustainability-related risks |
Uncertain environmental, social or governance events or conditions that, if they occur, could cause a potential material negative effect on the undertaking's business model or strategy and on its capability to achieve its goals and targets and to create value, and therefore may influence its decisions and those of its business relationships with regard to sustainability matters . Like any other risks , sustainability- related risks are the combination of an impact’s magnitude and the probability of occurrence. |
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Sustainability-related impacts |
The effect the undertaking has or could have on the environment and people, including effects on their human rights, as a result of the undertaking's activities or business relationships . The impacts can be actual or potential, negative or positive, short-term, medium or long-term, intended or unintended, and reversible or irreversible. Impacts indicate the undertaking's contribution, negative or positive, to sustainable development. |
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Systemic risks |
Risks arising from the breakdown of the entire system, rather than the failure of individual parts. They are characterised by modest tipping points combining indirectly to produce large failures with cascading of interactions of physical and transition risks (contagion), as one loss triggers a chain of others, and with systems unable to recover equilibrium after a shock. An example is the loss of a keystone species, such as sea otters, which have a critical role in ecosystem community structure. When sea otters were hunted to near extinction in the 1900s, the coastal ecosystems flipped and biomass production was greatly reduced. |
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Targets |
Measurable, outcome-oriented and time-bound goals that the undertaking aims to achieve in relation to material impacts , risks or opportunities . They may be set voluntarily by the undertaking or derive from legal requirements on the undertaking. |
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Threatened species |
Endangered species, including flora and fauna, listed in the European Red List or the IUCN Red List, as referred to in Section 7 of Annex II to Commission Delegated Regulation (EU) 2021/2139. |
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Training |
Initiatives put in place by the undertaking aimed at the maintenance and/or improvement of skills and knowledge of its own workers . It can include different methodologies, such as on-site training, and online training. |
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Transition plan |
A specific type of action plan that is adopted by the undertaking in relation to a strategic decision and that addresses:
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Transition plan for climate change mitigation |
An aspect of an undertaking’s overall strategy that lays out the undertaking’s targets , actions and resources for its transition towards a lower--carbon economy, including actions such as reducing its GHG emissions with regard to the objective of limiting global warming to 1.5°C and climate neutrality. |
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Transition risks |
Risks that result from a misalignment between an organisation’s or investor’s strategy and management and the changing regulatory, policy or societal landscape in which it operates. Developments aimed at halting or reversing damage to the climate or to nature, such as government measures, technological breakthroughs, market changes, litigation and changing consumer preferences can all create or change transition risks . |
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Users |
Users of sustainability statements are primary users of general-purpose financial reporting (existing and potential investors, lenders and other creditors including asset managers, credit institutions, insurance undertakings), as well as other users , including the undertaking’s business partners, trade unions and social partners, civil society and non-governmental organisations, governments, analysts and academics. |
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Value chain |
The full range of activities, resources and relationships related to the undertaking’s business model and the external environment in which it operates. A value chain encompasses the activities, resources and relationships the undertaking uses and relies on to create its products or services from conception to delivery, consumption and end-of- life. Relevant activities, resources and relationships include:
Value chain includes actors upstream and downstream from the undertaking. Actors upstream from the undertaking (e.g., suppliers ) provide products or services that are used in the development of the undertaking’s products or services. Entities downstream from the undertaking (e.g., distributors, customers) receive products or services from the undertaking. ESRS use the term “ value chain ” in the singular, although it is recognised that undertakings may have multiple value chains . |
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Value chain worker |
An individual performing work in the value chain of the undertaking, regardless of the existence or nature of any contractual relationship with the undertaking. In the ESRS, the scope of workers in the value chain include all workers in the undertaking’s upstream and downstream value chain who are or can be materially impacted by the undertaking. This includes impacts that are connected to the undertaking’s own operations, and value chain , including through its products or services, as well as through its business relationships . This includes all workers who are not in the scope of ‘ Own Workforce ’ (‘ Own Workforce ’ includes people who are in an employment relationship with the undertaking (‘ employees ’) and non-employees who are either individual contractors supplying labour to the undertaking (‘self-employed people’) or people provided by undertakings primarily engaged in employment activities. (NACE Code N78) |
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Wage |
Gross wage , excluding variable components such as overtime and incentive pay , and excluding allowances unless they are guaranteed. |
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Waste |
Any substance or object which the holder discards or intends or is required to discard(40). |
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Waste hierarchy |
Priority order in waste prevention and management(41):
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Waste management |
The collection, transport, recovery and disposal of waste , including the supervision of such operations and the after-care of disposal sites , and including actions taken as a dealer or broker(42). |
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Wastewater |
Water which is of no further immediate value to the purpose for which it was used or in the pursuit of which it was produced because of its quality, quantity, or time of occurrence. Wastewater from one user can be a potential supply to a user elsewhere. Cooling water is not considered to be wastewater . |
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Water consumption |
The amount of water drawn into the boundaries of the undertaking (or facility) and not discharged back to the water environment or a third party over the course of the reporting period. |
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Water discharge |
The sum of effluents and other water leaving the boundaries of the organisation and released to surface water, groundwater , or third parties over the course of the reporting period. |
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Water intensity |
A metric providing the relationship between a volumetric aspect of water and a unit of activity (products, sales, etc.) created. |
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Water (recycled and reused) |
Water and wastewater (treated or untreated) that has been used more than once before being discharged from the undertaking’s or shared facilities’ boundary, so that water demand is reduced. This may be in the same process (recycled) or in a different process within the same facility (own or shared with other undertakings) or in another of the undertaking’s facilities (reused). |
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Water scarcity |
The volumetric abundance, or lack thereof, of freshwater resources. Scarcity is human driven, it is a function of the volume of human water consumption relative to the volume of water resources in a given area. As such, an arid region with very little water, but no human water consumption would not be considered scarce, but rather arid. Water scarcity is a physical, objective reality that can be measured consistently across regions and over time. Water scarcity reflects the physical abundance of freshwater rather than whether that water is suitable for use. For instance, a region may have abundant water resources (and thus not be considered water scarce) but have such severe pollution that those supplies are unfit for human or ecological uses. |
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Water withdrawal |
The sum of all water drawn into the boundaries of the undertaking from all sources for any use over the course of the reporting period. |
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Workers’ representatives |
Workers' representatives means:
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Work-life balance |
Satisfactory state of equilibrium between an individual’s work and private life. Work-life balance in a broader sense encompasses not only the balance between work and private life given family or care responsibilities, but also time allocation between time spent at work and in private life beyond family responsibilities. |
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Work-related hazards |
Work-related hazards can be:
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Work-related incident |
Occurrence arising out of or in the course of work that could or does result in injury or ill health. Incidents might be due to, for example, electrical problems, explosion, fire, overflow, overturning, leakage, flow, breakage, bursting, splitting, loss of control, slipping, stumbling and falling, body movement without stress, body movement under/with stress, shock, fright, workplace violence or harassment (e.g., sexual harassment ). An incident that results in injury or ill health is often referred to as an ‘accident’. An incident that has the potential to result in injury or ill health but where none occurs is often referred to as a ‘close call’, ‘near-miss’, or ‘near-hit’. |