ESRS 2 General disclosures

ESRS 2 General disclosures specifies essential information to be disclosed irrespective of which sustainability matter is being considered. Mandatory for all companies under the CSRD scope.

The disclosures of ESRS 2 and the topical standards are structured into four key reporting areas: 1) governance, 2) strategy, 3) impact, risk, and opportunity management, and 4) metrics and targets. The ESRS 2 sets minimum disclosure requirements (MDRs) for reporting on policies, actions, metrics, and targets (see Table) related to each material sustainability matter.

Governance

The role of the administrative, management and supervisory bodies

Information provided to and sustainability matters addressed by the undertaking’s administrative, management and supervisory bodies

Integration of sustainability-related performance in incentive schemes

Statement on due diligence

Risk management and internal controls over sustainability reporting

Strategy

Strategy, business model and value chain

Interests and views of stakeholders

Material impacts, risks and opportunities and their interaction with strategy and business model

Impact, risk and opportunity management

Disclosures on the materiality assessment process

Description of the processes to identify and assess material impacts, risks and opportunities

Disclosure Requirements in ESRS covered by the undertaking’s sustainability statements

Minimum disclosure requirements on policies and actions

Policies adopted to manage material sustainability matters

Actions and resources in relation to material sustainability matters

Metrics and targets

Minimum disclosure requirements on metrics and targets}

Metrics in relation to material sustainability matters

Tracking effectiveness of policies and actions through targets

The structure of the DR's is consistent across all topical standards and includes:

Policies and actions DR's;
Metrics and targets DR's;
Entity-specific disclosures.

To determine which topical standards are material to your company, a double materiality assessment (DMA) is essential. DMA is fundamental to ESRS 2 General Disclosures as it guides companies in identifying the critical sustainability information to report. By applying the double materiality approach, companies offer a comprehensive view of how sustainability issues affect them financially, as well as how company impacts the environment and people.

Importantly, if a topic is deemed material and is covered by a topical ESRS, the related DR's themselves may not necessarily be material. In other words, even if the overall topic is material, specific DR's within that topic may not be.

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Read the full ESRS 2

All topical standards

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ESRS 2 General disclosures