IRO-1 – Description of the processes to identify and assess material climate-related impacts, risks and opportunities

🗂️ ESRS E1 Climate Change, page 5-6

1. The undertaking shall describe the process to identify and assess climate-related impacts, risks and opportunities. This description shall include its process in relation to:
2. impacts on climate change, in particular, the undertaking’s GHG emissions (as required by Disclosure Requirement ESRS E1-6);
3. climate-related physical risks in own operations and along the upstream and downstream value chain, in particular: 1. the identification of climate-related hazards, considering at least high emission climate scenarios; and 2. the assessment of how its assets and business activities may be exposed and are sensitive to these climate-related hazards, creating gross physical risks for the undertaking.
4. climate-related transition risks and opportunities in own operations and along the upstream and downstream value chain, in particular: 1. the identification of climate-related transition events, considering at least a climate scenario in line with limiting global warming to 1.5°C with no or limited overshoot; and 2. the assessment of how its assets and business activities may be exposed to these climate-related transition events, creating gross transition risks or opportunities for the undertaking.
5. When disclosing the information required under paragraphs 20 (b)and 20 (c) the undertaking shall explain how it has used climate-related scenario analysis, including a range of climate scenarios, to inform the identification and assessment of physical risks and transition risks and opportunities over the short-, medium- and long-term.