Questions & Answers
Is there a minimum number of material sustainability matters to be disclosed in the sustainability statement of the undertaking?
- Minimum number of material sustainability matters
Background
ESRS 1 paragraph 28 states: ‘A sustainability matter is “material” when it meets the criteria defined for impact materiality . . . or financial materiality . . . or both.’
IG 1 Materiality assessment paragraph 1 states: ‘The ESRS sustainability statement shall include relevant and faithful information about all impacts, risks and opportunities (also referred to as IROs) across environmental, social and governance matters determined to be material from the impact materiality perspective, the financial materiality perspective or both. The materiality assessment is the process by which the undertaking determines material information on sustainability IROs. This is achieved by the determination of material matters and material information to be reported. The performance of a materiality assessment based on objective criteria is pivotal to sustainability reporting. The undertaking will use judgement when applying the criteria, and the related explanations are expected to provide transparency from the undertaking to the users of the sustainability statement.’
The Application Requirements in Appendix A of ESRS include a list of sustainability matters covered in ESRS.
Answer
There is no minimum (or maximum) number of material sustainability matters required by ESRS, as materiality is based on the undertaking’s specific facts and circumstances.
Materiality is a principles-based concept. IG 1 Materiality assessment provides non-authoritative guidance on how to conduct the materiality assessment. Materiality of a sustainability matter for an undertaking depends on the specific facts and circumstances related to its strategy, business model, own operations and value chain. Based on those specific facts and circumstances, a number of material impacts, risks and opportunities will be identified as a result of the materiality assessment.
Relations
Paragraph | Content |
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3. Double materiality as the basis for sustainability disclosures | |
3. Double materiality as the basis for sustainability disclosures | |
3. Double materiality as the basis for sustainability disclosures |