| 2- | In disclosing information about their sustainability-related risks and opportunities, Reporting Entities should consider including the following factors. |
| | | 2-1 | Transparency: Reporting Entities should disclose relevant information about their sustainability policies, practices, and performance to the public, including investors, customers, and stakeholders. |
| | | 2-2 | Materiality: Reporting Entities should focus on disclosing all material sustainability risks and opportunities that are relevant to their business and that have or could have a significant impact on their financial performance. Information is deemed as material if omitting, misstating or obscuring it could reasonably be expected to influence decisions that investors or other stakeholders make. |
| | | 2-3 | Relevance: Reporting Entities should ensure that their sustainability disclosures are relevant and useful to stakeholders, including investors, customers, and regulators, by providing context, analysis, and insights that help them understand the risks and opportunities associated with sustainability issues. |
| | | 2-4 | Comprehensiveness: The disclosure should facilitate comprehensive insight into Reporting Entities exposures to potential sustainability-related impacts; the potential nature and size of such impacts; the organisation’s governance, strategy, and processes for managing such risks, and its performance with respect to managing the related risks and opportunities. |
| | | 2-5 | Consistency and comparability: Reporting Entities should use consistent and comparable sustainability metrics and reporting standards. The disclosures should be presented using consistent formats, language, and metrics from period to period to allow for assessment over time. |
| | | 2-6 | Clarity: the information and data presented should be easy to read and understand by the relevant audience. Necessary definitions, explanations and illustrations should be used to facilitate the comprehension of the data and information presented. |
| | | 2-7 | Frequency and timeliness: Reporting Entities should provide timely and regular updates on their sustainability performance, so that stakeholders can track their progress over time and make informed decisions. When appropriate, the Reporting Entities should be prompt in their issuance of interim reports and statements of interest and relevance to their stakeholders. |
| | | 2-8 | Stakeholder engagement: Reporting Entities should, where relevant, engage with stakeholders, to understand their sustainability concerns and priorities, and use this feedback to improve their sustainability disclosures and performance. |
| | | 2-9 | Verification and assurance: Reporting Entities should aim to use independent, third-party verification and assurance to confirm the accuracy and reliability of their sustainability disclosures, particularly for key performance indicators, metrics and targets. |
| | | 2-10 | Integration: Reporting Entities should integrate their sustainability disclosures into their overall corporate reporting and governance frameworks, including their board discussions and annual reports, financial statements, to ensure that sustainability is adequately embedded in their business strategies and decision-making processes. |
| | | 2-11 | Continual review and improvement: Reporting Entities should strive for continual improvement in their sustainability disclosures and performance, by setting adequate sustainability targets and regularly reviewing and updating their sustainability policies, practices, and reporting. |