Questions & Answers
To how many decimals should a percentage be rounded? And for other datapoints that ask for a ‘decimal’, how many decimals are expected?
- Decimals, rounding
- metrics, rounding
- materiality of information
Background
ESRS 1 paragraph 34 states: ‘When disclosing information on metrics for a material sustainability matter according to the Metrics and Targets section of the relevant topical ESRS, the undertaking:
(a) shall include the information prescribed by a Disclosure Requirement if it assesses such information to be material; and
(b) may omit the information prescribed by a datapoint of a Disclosure Requirement if it assesses such information to be not material and concludes that such information is not needed to meet the objective of the Disclosure Requirement.’
Answer
ESRS does not have specific rules for rounding or prescribing the number of decimals to be used for percentages.
ESRS 1 paragraph 34 clarifies how that materiality of information applies to metrics. Accordingly, the materiality of information also applies to rounding and decimals to be used for a percentage metric. The undertaking may omit decimals and use rounding if it considers the information not conveyed through omitting decimals and using rounding to be not material.
Materiality of information needs to be decided on a case-by-case basis depending on fact patterns such as the size of the company, the metric to be disclosed and the materiality of the topic.
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