ESRS 2, SBM-1 datapoint 40, compulsory for all companies subject to CSRD, require companies to disclose detailed information about the key elements of its general strategy that relate to or affect sustainability matters:
➡ description of significant groups of products and/or services offered
➡ description of significant markets and/or customer groups served
➡ where applicable and material, products and services that are banned in certain markets
➡ breakdown of total revenue by significant ESRS sectors
➡ where applicable, a statement indicating, together with the related revenues, that the company is active in the following sectors
✔ fossil fuel (coal, oil and gas)
✔ chemicals production
✔ controversial weapons
✔ cultivation and production of tobacco
➡ its sustainability-related goals, including an assessment, in terms of significant groups of products and services, customer categories, geographical areas and relationships with stakeholders
➡ the elements of the company’s strategy that relate to or impact sustainability matters, including the main challenges ahead, critical solutions or projects to be put in place, when relevant for sustainability reporting.
The objective of this Disclosure Requirement is to provide an understanding of the company’s exposure to impacts, risks and opportunities and where they originate.
Disclosure requirement E1-1 also requires the company to disclose its transition plan for climate change mitigation, to ensure that its strategy and business model are compatible with the transition to a sustainable economy and the objective of achieving climate neutrality by 2050, in alignment with EU Climate Law and Benchmark Regulation.
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