Skip to content
Docs

E2-6 – Anticipated financial effects from material pollutionrelated risks and opportunities

🗂️ ESRS E2 Pollution, page 6-7

  1. The undertaking shall disclose the anticipated financial effects of material pollution related risks and opportunities.

  2. The information required by paragraph 36 is in addition to the information on current financial effects on the undertaking’s, financial position, financial performance and cash flows for the reporting period required under ESRS 2 SBM-3 para 48 (d).

  3. The objective of this Disclosure Requirement is to provide an understanding of:

(a) anticipated financial effects due to material risks arising from pollution-related impacts and dependencies and how these risks have (or could reasonably be expected to have) a material influence on the undertaking’s , financial position financial performance and cash flows, over the short-, medium- and long-term.

(b) anticipated financial effects due to material opportunities related to pollution prevention and control.

  1. The disclosure shall include:

(a) a quantification of the anticipated financial effects in monetary terms before considering pollution-related actions, or where not possible without undue cost or effort, qualitative information. For financial effects arising from opportunities, a quantification is not required if it would result in disclosure that does not meet the qualitative characteristics of information (see ESRS 1 Appendix B Qualitative characteristics of information);

(b) a description of the effects considered, the related impacts and the time horizons in which they are likely to materialise; and

(c) the critical assumptions used to quantify the anticipated financial effects, as well as the sources and level of uncertainty of those assumptions.

  1. The information provided under paragraph 38(a) shall include:

(a) the share of net revenue made with products and services that are or that contain substances of concern, and the share of net revenue made with products and services that are or that contain substances of very high concern;

(b) the operating and capital expenditures incurred in the reporting period in conjunction with major incidents and deposits;

(c) the provisions for environmental protection and remediation costs, e.g., for rehabilitating contaminated sites, recultivating landfills, removal of environmental contamination at existing production or storage sites and similar measures.

  1. The undertaking shall disclose any relevant contextual information including a description of material incidents and deposits whereby pollution had negative impacts on the environment and/or is expected to have negative effects on the undertaking’s financial cash flows, financial position and financial performance with short-, medium- and long-term time horizons.

Application Requirements

Section titled “Application Requirements”

AR 31. The operating and capital expenditures related to incidents and deposits may include for instance:

(a) cost for eliminating and remediating the respective pollution of air, water and soil including environmental protection;

(b) damage compensation costs including payment of fines and penalties imposed by regulators or government authorities.

AR 32. Incidents may include for instance interruptions of production, whether arising from the supply chain and/or from own operations, which resulted in pollution.

AR 33. The undertaking may include an assessment of its related products and services at risk over the short-, medium- and long-term, explaining how these are defined, how financial amounts are estimated, and which critical assumptions are made.

AR 34. The quantification of the anticipated financial effects in monetary terms under paragraph 38(a) may be a single amount or a range.