Question-ID: 482

The submitter asked the following question, which was amended as stated above to align it with the wording of ESRS 2 paragraph 40: ‘How is total income of a credit institution defined and how is it divided into ESRS sectors? Is it the sector ‘credit institution’ or the sectors for the business portfolio, i.e., the sectors of the financed portfolio?’

ESRS 2 paragraph 40 states: ‘The undertaking shall disclose the following information about the key elements of its general strategy that relate to or affect sustainability matters … (b) a breakdown of total revenue, as included in its financial statements, by significant ESRS sectors.’

ESRS 2 paragraph AR 12 states: ‘To provide the information on sectors required by paragraph 40, the undertaking shall map its significant activities in accordance with ESRS sectors. If a code for a subsector does not exist, the caption “others” shall be used.’

ESRS do not use the term ‘net turnover’ as used by the Accounting Directive (Directive 2013/34/EU Article 2 (5)). The Accounting Directive defines ‘net turnover’ (Directive 2013/34/EU Article 2 (5)): ‘net turnover’ means the amounts derived from the sale of products and the provision of services after deducting sales rebates and value added tax and other taxes directly linked to turnover; however, for insurance undertakings referred to in point (a) of the first subparagraph of Article 1 (3) of this Directive, ‘net turnover’ shall be defined in accordance with Article 35 and point 2 of Article 66 of Council Directive 91/674/EEC; for credit institutions referred to in point (b) of the first subparagraph of Article 1 (3) of this Directive, ‘net turnover’ shall be defined in accordance with point (c) of Article 43 (2) of Council Directive 86/635/EEC; …’

Council Directive 86/635/EEC of December 1991 on the annual accounts and consolidated accounts of banks and other financial institutions, Article 43 (2) point (c), states: ‘The information referred to in the first two indents of Article 9 (2) of Directive 83/349/EEC, namely … [that] the net turnover shall be replaced by … the sum of items … B 1, B 2, B 3, B 4 and B 7 in Article 28 of this Directive.’

Council Directive 86/635/EEC Article 28 states:

‘B. Income

(a) Interest receivable and similar income, showing separately that arising from fixed-income securities

(b) Income from securities:

i. Income from shares and other variable-yield securities

ii. Income from participating interests

iii. Income from shares in affiliated undertakings

(c) Commissions receivable

(d) Net profit on financial operations

(a) (…)

(b) 7. Other operating income …’