Sustainability-related disclosures should reflect the way in which an entity operates, including in the areas of governance, strategy and risk management, and incorporate relevant metrics and targets. While additional, specific disclosure requirements may apply depending on the type of Reporting Entity, the following minimum disclosures would be expected from the Reporting Entities.
3-1
Governance: Information about the governance processes, controls, and procedures in place to manage sustainability-related risks and opportunities. Disclosures should include information on how the board of directors determines whether sufficient knowledge and skills are available to understand and assess the impact of sustainability-related risks on the Reporting Entity, and how sustainability-related risks and opportunities are taken into account in the board’s oversight, decisions and actions. Disclosures should also cover the role of the senior management in the governance processes for sustainability-related risks and opportunities.
3-2
Strategy: Information about how the Reporting Entity’s strategy incorporates sustainability-related considerations, including risks and opportunities, as well as any relevant transition plans. Information disclosed should include a description of how identified sustainability risks and opportunities are expected to affect the Reporting Entity’s business model and financial results over the short-, medium- and longterm, and the measures the Reporting Entity has undertaken or plans to undertake to manage such risks and take advantage of the potential opportunities.
3-3
Risk management: Information about sustainability-related risks and opportunities and how they are being managed. Information disclosed should include the processes and policies the Reporting Entity uses to identify, assess, measure, mitigate, monitor and report on sustainability-related risk exposures, how those processes are integrated into the overall risk management framework of the Reporting Entity, including capital and liquidity monitoring and, if applicable, how scenario analysis is used to identify sustainability-related risks.
3-4
Metrics and targets: Information about the metrics and targets used to measure, manage and monitor sustainability-related performance.