GOV–5 - Risk management and internal controls over sustainability reporting

🗂️ ESRS 2 General Disclosures, page 8-9

34. The undertaking shall disclose the main features of its risk management and internal control system in relation to the sustainability reporting process.

35. The objective of this Disclosure Requirement is to provide an understanding of the undertaking’s risk management and internal control processes in relation to sustainability reporting.

36. The undertaking shall disclose the following information:

(a) the scope, main features and components of the risk management and internal control processes and systems in relation to sustainability reporting;

(b) the risk assessment approach followed, including the risk prioritisation methodology;

(c) the main risks identified and their mitigation strategies including related controls;

(d) a description of how the undertaking integrates the findings of its risk assessment and internal controls as regards the sustainability reporting process into relevant internal functions and processes; and

(e) a description of the periodic reporting of the findings referred to in point (d) to the administrative, management and supervisory bodies.

Application Requirements

AR 11. This Disclosure Requirement focuses solely on the internal control processes over the sustainability reporting process. The undertaking may consider risks such as the completeness and integrity of the data, the accuracy of estimation results, the availability of upstream and/or downstream value chain data, and the timing of the availability of the information.