• ​Provide a description of key impacts, risks, and opportunities.

    The organization should provide two concise narrative sections on key impacts, risks, and opportunities.

    Section One should focus on the organization’s key impacts on sustainability and effects on stakeholders, including rights as defined by national laws and relevant internationally recognized standards. This should take into account the range of reasonable expectations and interests of the organization’s stakeholders. This section should include:

    • A description of the significant economic, environmental and social impacts of the organization, and associated challenges and opportunities. This includes the effect on stakeholders’ rights as defined by national laws and the expectations in internationally recognized standards and norms
    • An explanation of the approach to prioritizing these challenges and opportunities
    • Key conclusions about progress in addressing these topics and related performance in the reporting period. This includes an assessment of reasons for underperformance or over-performance
    • A description of the main processes in place to address performance and relevant changes

    Section Two should focus on the impact of sustainability trends, risks, and opportunities on the long-term prospects and financial performance of the organization. This should concentrate specifically on information relevant to financial stakeholders or that could become so in the future. Section Two should include the following:

    • A description of the most important risks and opportunities for the organization arising from sustainability trends
    • Prioritization of key sustainability topics as risks and opportunities according to their relevance for long-term organizational strategy, competitive position, qualitative, and (if possible) quantitative financial value drivers
    • Table(s) summarizing:
      • Targets, performance against targets, and lessons learned for the current reporting period
      • Targets for the next reporting period and medium term objectives and goals (that is, 3–5 years) related to key risks and opportunities
    • Concise description of governance mechanisms in place specifically to manage these risks and opportunities, and identification of other related risks and opportunities