How to report on financially material ESG topics which are also discussed in the annual financial statements?

This depends on the situation. A sustainability topic that is “financially” material is often, but not always, disclosed in the annual financial statements and could also be part of the corporate report (especially in integrated reporting structures).

An example regarding this has been discussed in the webinar series by the SER and DASB, and relates to the risk of flooding. That is a topic that is relevant for the sustainability report from the financial materiality perspective. However, in the annual financial statements of an undertaking, the direct impact of this risk will only be disclosed after the flood has actually occurred. It is usually not allowed to include forward looking statements such as this within the annual financial statements (in the form of a provision for potential damages).

Questions CSRD & ESRS

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