Questions & Answers
What is developed first: the strategy or the policy related to sustainability matters?
- Strategy
- policy
Background
ESRS 2 paragraph 38 states: ‘The undertaking shall disclose the elements of its strategy that relate to or impact sustainability matters, its business model and its value chain.’
ESRS 2 paragraph 63 states: ‘The undertaking shall apply the minimum disclosure requirements defined in this provision when it discloses the policies it has in place with regard to each sustainability matter identified as material.’
A policy according to the Annex II Acronyms and Glossary of Terms is ‘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.’
Answer
While ESRS set disclosure requirements, they do not prescribe behavioural obligations in respect to strategy and policies.
The development of a strategy or policy related to sustainability matters is determined by the undertaking’s governance bodies.
Relations
Paragraph | Content |
|---|---|
Disclosure Requirement SBM-1 – Strategy, business model and value chain | |
Disclosure Requirement SBM-1 – Strategy, business model and value chain | |
Disclosure Requirement SBM-1 – Strategy, business model and value chain |