The primary function of ESRS 2 General Disclosures (CSRD) is to offer detailed explanations and interpretations of the disclosure requirements outlined in ESRS 2. This standard is considered "sector-agnostic" and "cross-cutting," meaning it applies to all companies required to report under CSRD, regardless of their industry sector. The AI assistant is designed to break down the complex regulatory language into more accessible terms, helping users understand and implement the required disclosures effectively.
One of the key strengths of this AI tool is its comprehensive coverage of the ESRS 2 structure. It can provide in-depth information on the three main sections of ESRS 2: Governance (GOV), Strategy and Business Model (SBM), and Impacts, Risks, and Opportunities (IRO). Additionally, it covers the Basis for Preparation (BP) and Minimum Disclosure Requirements (MDR) on policies, actions, metrics, and targets.
The ESRS 2 General Disclosures (CSRD) AI assistant is particularly useful for explaining specific disclosure requirements. For example, it can detail the five Governance (GOV) disclosures, including the role of administrative, management, and supervisory bodies (GOV-1), the process of informing these bodies on sustainability matters (GOV-2), integration of sustainability-related performance in incentive schemes (GOV-3), statement on due diligence (GOV-4), and risk management and internal controls over sustainability reporting (GOV-5).
Furthermore, this AI tool can guide users through the Strategy and Business Model (SBM) disclosures, helping them understand how to report on their business strategy, value chain, stakeholder engagement, and the integration of material impacts, risks, and opportunities into their business model.
The AI assistant is also adept at explaining the Impacts, Risks, and Opportunities (IRO) section, including the materiality assessment process and how to disclose the list of applicable ESRS 2 Disclosure Requirements based on the materiality assessment outcome.
A significant feature of ESRS 2 General Disclosures (CSRD) is its ability to clarify the Minimum Disclosure Requirements (MDR) on policies, actions, metrics, and targets. This includes guidance on how to report adopted policies (MDR-P), actions and resources allocated (MDR-A), metrics used to evaluate performance (MDR-M), and targets set in relation to material sustainability matters (MDR-T).
Key features of ESRS 2 General Disclosures (CSRD) include:
ESRS 2 General Disclosures (CSRD) serves as a valuable tool for companies and professionals navigating the complex landscape of sustainability reporting under the CSRD framework, offering detailed insights and practical guidance for compliance with ESRS 2 requirements.