Disclosure focus
This disclosure asks an organisation to explain how climate-related risks and opportunities could affect its finances over time. In practice, that means describing the expected impacts on revenue, costs, assets, liabilities, cash flows or access to finance where those effects are material, and showing how the organisation has identified and assessed them. The focus is not just on whether climate matters in principle, but on the likely financial consequences that are reasonably anticipated from material physical risks, transition risks and relevant climate-related opportunities.
The practical emphasis is on coverage across the parts of the business that matter most to the assessment, rather than only highlighting a few flagship sites or isolated examples. An organisation should consider the areas, assets, operations and time horizons that drive the financial effect, and explain the basis for any estimates, assumptions and uncertainties used. The aim is to give users a clear view of where climate could change the organisation’s financial position or performance, and how broad that assessment is across the group or value chain where relevant.
This LRA educational guidance supports disclosure preparation. For the exact requirements, always refer to the official EFRAG source.
Before you start
A quick mental checklist before you prepare this disclosure — tick each as you settle it.
Preparation
Key datapoints to prepare
＋ Show E1-11 sub-elements (LRA working checklist)
Identify the assets that could be materially affected by physical climate hazards.
State where those physically exposed assets are located.
Show the share of net revenue exposed to material physical climate risk.
Explain how much of the physical-risk response plan is covered by the actions you describe.
Identify the assets that could be materially affected by climate transition risk.
Show the share of net revenue exposed to material transition risk.
Disclose any possible liabilities linked to the climate transition.
Break out real-estate collateral by energy-efficiency band.
Explain how much of the transition-risk response plan is covered by the actions you describe.
Set out the key assumptions and limits used in the analysis.
Describe the method used to estimate the financial effects.
Identify the assets that are linked to climate-related opportunities.
Show the revenue linked to climate-related opportunities.
How to prepare it
1Set the reporting boundary first. Decide which assets, income streams and real-estate collateral fall into the climate-risk and climate-opportunity population for this disclosure, and separate the physical-risk, transition-risk and opportunity views so each figure is built from the right slice of the business.
2Define the counting rules before you calculate anything. Agree how you will identify material exposure, how you will treat mitigation coverage, and how you will classify property collateral by energy-efficiency band, so the same logic is used across all datapoints.
3Gather the source records and supporting evidence. Pull together asset registers, revenue extracts, location data, collateral schedules, risk assessments, action trackers and any papers that support the figures or the narrative fields, including the method note and the list of key assumptions and limits.
4Build the numbers and the written explanations from the evidence. Populate the currency amounts for exposed assets, exposed revenue, possible climate-related liabilities, and climate-opportunity assets and revenue, then draft the text fields for locations, methodology, assumptions and limitations in a way that matches the underlying records.
5Record any exclusions, changes in approach or judgement calls. If a data set is incomplete, a classification has changed, or a scope decision affects comparability, note it clearly so the reader can see what was left out, what moved, and why the current period differs from prior reporting.
6Check the draft against the official source before sign-off. Reconcile every amount, text entry and classification back to the relevant requirement, confirm the units and labels are correct, and make sure the final submission reflects the source wording in substance without copying it.
Request the data
Request the climate risk and opportunity financials from Finance
Translate the disclosure into an internal business question — then adapt it to your organisation's own language.
What amounts, locations, methods and assumptions do we need to support the expected financial impact of climate-related physical risks, transition risks and climate opportunities in our reporting period?
Use your own finance and risk terms first, then map them to the reporting categories. Ask for the figures and supporting notes in the way your team already tracks exposures, sites, revenue lines, assets and scenario work; do not start from the framework labels unless that is how your organisation already works.
Weak request
Please provide the ESRS E1:E1-11 data for material physical and transition risks and climate opportunities, including all financial effects, methodology, assumptions and location information.
Why it fails: It uses framework language first, which makes it harder for the owner to recognise the data in their own records. It also bundles several different asks without saying which internal files, categories or basis should be used, so the response is likely to be incomplete or inconsistent.
Better request
Please send the latest finance pack for climate-related exposures and opportunities for [period]. I need the amounts for assets, revenue and any liabilities your team tracks, plus the site or portfolio location, the source file, the currency basis, the method used, and any assumptions or gaps. Please use your team’s own labels first, then we can map them to the reporting categories.
Industry examples
Draft your disclosure
Notes that turn data into a disclosure
LRA training templates — adapt them to your organisation, and check the official source before sign-off.
Method note
Explain how the amounts were identified, measured and grouped, including the basis used for the financial effects, the main assumptions applied, and the key limits or uncertainties that affect the figures.
Context note
Set out what the numbers mean for the business by linking the exposed assets, revenue and collateral to the organisation’s climate-related risk and opportunity profile, and by clarifying whether the figures are absolute amounts, shares, or both.
Fluctuation statement
If the figures moved materially, describe the main drivers in plain terms, such as changes in asset coverage, site mix, revenue mix, mitigation progress, valuation updates, or revised assumptions used in the calculation.
Content index entry
E1-11 Anticipated financial effects from material physical and transition risks and potential climate-related opportunities — [location / page] / [notes]
Download Centre
Preparation tools & forms
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Assurance readiness
For each claim, check the evidence
Evidence pack to prepare
Common reporting gaps
Figures are stated without the supporting narrative, or narrative without figures.Scope is inconsistent between the text and the numbers.The reporting boundary is left undefined.Material changes since the previous period are not disclosed.Estimates and measured values are not distinguished.Source records for the figures are not identified.
Common gaps
Mistakes to avoid when collecting the data
Wrong owner, wrong language
The request goes to a finance or risk contact using framework terms instead of the team that actually holds the figures, so the reply comes back in the wrong business language and cannot be mapped cleanly.
Boundary left undefined
People start collecting numbers before agreeing which entities, sites, contracts, or portfolios sit inside the scope, so different teams report different populations.
Period basis not fixed
One team pulls a year-end balance while another uses an average or a different cut-off date, so the figures cannot be compared on the same timing basis.
Mixed counting basis
Amounts from gross, net, and partially adjusted views are blended together, which makes the final dataset internally inconsistent.
Source labels stripped out
The original file names, account codes, site IDs, or system tags are lost during consolidation, so the team cannot trace each figure back to its source.
Separate populations merged
Physical-risk items, transition-risk items, and opportunity items are rolled into one extract even though they need to stay distinct for later reporting.
Evidence details not captured
The team saves the number but not the supporting note, extract date, version, or owner, so the figure cannot be checked later.
No review trail
Draft values move through email and spreadsheets without a clear sign-off record, so nobody can show who checked the data or when it was approved.
Where judgement is often needed
Group perimeter after a deal closes or a business is sold
Use the same cut-off date and group boundary as the rest of the report, then explain any bought-in or sold-out operations that change the asset, turnover or opportunity figures.
Different country labels for the same risk or asset class
Map local descriptions into one internal grouping rule, and disclose the mapping where a site, loan book or revenue stream is named differently across jurisdictions.
Borderline items that sit partly inside and partly outside the risk set
Set a clear inclusion rule for mixed-use sites, shared facilities or partially exposed portfolios, and state how you treated the edge cases so the totals can be followed.
Choosing the measurement date for forward-looking amounts
Anchor the numbers to one reporting date or period basis, explain if you used year-end, average-period or another cut-off, and keep the basis consistent across all related figures.
Modelled estimates versus directly observed amounts
If a figure comes from a model, proxy or scenario rather than a direct record, say so, describe the main assumptions and limits, and separate it from any measured amount where that helps users understand it.
Rounding and small differences across linked tables
Apply one rounding rule across the disclosure set, and explain any minor mismatches between subtotals and totals so readers can see they are caused by rounding rather than missing data.
Protecting sensitive site or customer information when listing locations
Group or generalise location details where naming a site too precisely would expose confidential information, and explain the level of aggregation used and why it still gives a useful picture.
Coverage percentages where the denominator is not straightforward
Define the population behind each coverage figure, including any excluded assets, revenues or mitigation actions, and disclose the basis used so readers can judge how complete the coverage is.
Real-estate security where energy grades are missing or mixed
State the rule used for properties without a clear energy class or with mixed certificates, and explain whether they were left out, grouped separately or assigned by a documented proxy.
Opportunity figures that overlap with risk figures
Avoid double counting by setting one rule for whether an asset or revenue line sits in the risk bucket, the opportunity bucket, or both, and explain that rule in the narrative.
Examples
Illustrative examples
Synthetic, written by LRA — not from a company report, not text from any standard.
Illustrative (synthetic) example — manufacturing
We have mapped the parts of our operations and sales that sit in areas exposed to climate hazards, and we estimate that 18% of our property, plant and equipment and 12% of annual net sales are linked to those locations; 72% of the identified physical-risk sites already have adaptation measures in place. For slower-burn climate change risks, 27% of our assets and 19% of net sales are exposed, 61% of those sites are covered by response actions, and 14% of the mortgaged property we hold as security sits in lower-efficiency energy bands. We also estimate possible climate-related transition charges of 6 monetary units, using scenario-based cash-flow effects, asset write-downs and cost assumptions; the main limits are that the figures rely on current site data, modelled hazard paths and management estimates. On the upside, 9% of our asset base and 7% of revenue are tied to climate-related opportunities, mainly from efficiency upgrades and lower-carbon product lines.
This is a synthetic, practitioner-style example showing how a company might describe exposure, coverage of response actions, collateral quality, possible transition costs, the method used to estimate effects, key caveats, and the share of assets and revenue linked to climate opportunities.
Illustrative (synthetic) example — retail and logistics
We have reviewed our warehouse network, stores and related sales to identify where climate hazards could affect value: 11% of our assets and 8% of net revenue are in locations with material flood or heat exposure, and 55% of those sites are already covered by mitigation plans. Looking at the shift to a lower-carbon economy, 22% of assets and 16% of net revenue are exposed, 68% of those sites have transition-response actions in place, and 9% of the property we hold as loan security falls into weaker energy-performance bands. Based on scenario analysis, we estimate potential transition-related liabilities of 4 monetary units; the estimate uses site-level data, internal capex plans and management judgement, and it is constrained by incomplete supplier information and uncertainty over future policy timing. We also identify 13% of assets and 10% of revenue as connected to climate opportunities, mainly through electrified transport, energy-saving retrofits and low-emission service offerings.
This is a second synthetic example for a different sector, showing the same disclosure points with different figures and a different business profile.
How companies report E1-11 in practice
Real reports where this topic is disclosed. These are report practice, not exact disclosure templates to copy.
Snam S.p.A.
Gas Utilities · Italy · 2025
Snam S.p.A.'s 2025 Annual Report provides a covered datapoint on the monetary value of net revenue from business activities at material physical risk, reported as 6 million euros on page 319. The report also references anticipated financial effects from material physical and transition risks in the context of risk management models on page 478, though these disclosures are unclear in terms of specific monetary values. Notably, there is no clear disclosure of percentage values or detailed narrative explanations related to these financial effects elsewhere in the report.
Acciona, S.A.
Electric Utilities / IPP / Energy Traders · Spain · 2025
Acciona’s 2025 Sustainability Report includes some contextual references to the financial effects of environmental impacts, such as those related to climate change and greenhouse gas emissions (p.406), and mentions risk and opportunity management processes concerning pollution and water-related impacts (p.440). The report also refers to anticipated financial effects from biodiversity and resource use risks (p.32) and discusses risk management in relation to physical risks evaluated for 2030 (p.169). However, there is no clear or explicit disclosure of monetary or percentage values quantifying these financial effects, nor detailed narrative explanations specifically addressing this disclosure.
Covivio
Real Estate · France · 2025
Covivio’s 2025 Sustainability Report provides some contextual information on financial risks related to sustainability, noting a limited financial risk overall but highlighting an increase in waste management costs and associated risks (p.102). The report also references the materiality of building obsolescence risks and climate-related physical risk studies conducted in 2025 (pp.36, 56). However, the report does not clearly disclose specific monetary or percentage values, nor does it provide detailed narrative explanations directly addressing these datapoints.
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Scenarios to work through
A manufacturer has two sites in a flood-prone area. The finance team has estimated that one plant and part of the related sales base could be affected if severe weather becomes more frequent, and operations have already started some protective work.
QShould the preparer include the affected asset value, the related turnover, the share of the protective actions already in place, and the site location in the climate note?
Reveal model answer →Hide answer ↑Yes. If the team has identified a material weather-related exposure, the note should cover the value of the exposed assets, the related revenue, how much of the planned protection is already covered by action, and where those assets are located. The figures should be based on the same risk view so the reader can see what is exposed and how far the response has progressed.
Why this matters · When a physical hazard is material, the disclosure should connect the exposed balance-sheet items, the related sales, the response coverage, and the location.
A group owns a warehouse portfolio and a vehicle fleet. Management has concluded that some assets may lose value because of policy changes and market shifts linked to the move to a lower-carbon economy, while a separate set of assets is expected to benefit from demand for low-emission services.
QHow should the preparer separate the downside exposure from the upside opportunity, and what extra items need to be described for the downside side?
Reveal model answer →Hide answer ↑The preparer should report the assets and revenue exposed to the downside risk separately from the assets and revenue linked to the opportunity. For the downside side, the note also needs the share of mitigation already in place, any real-estate security held against loans broken down by energy-efficiency band if that is relevant, and any possible climate-related liabilities that could arise. The opportunity side is reported as the value of assets and revenue connected with that upside, without mixing it into the risk figures.
Why this matters · Keep downside exposure, downside response, and upside opportunity distinct so the reader can follow each effect on its own.
A preparer has modelled future cash impacts from heat stress and carbon-pricing changes using internal scenarios, but the estimates rely on broad assumptions about timing, customer behaviour, and asset lives. The team is unsure how much detail to give about the method and its weaknesses.
QWhat should be explained so users can judge the numbers properly?
Reveal model answer →Hide answer ↑The note should explain the approach used to estimate the financial effects and spell out the main assumptions and limits that shape the result. That means being clear about the basis of the calculation, the key judgement calls, and where the estimate is less certain or more sensitive to change. The aim is to let a reader understand how the numbers were built and how much confidence to place in them.
Why this matters · A useful estimate is not just a number; it also needs the method and the main caveats behind it.
A retailer has identified a new line of products and services that should benefit from climate-related demand, and the finance team has quantified the assets and sales linked to that opportunity. The team is tempted to present the upside only, because the downside exposures are still being refined.
QCan the preparer disclose the opportunity amounts now and leave the risk side for later?
Reveal model answer →Hide answer ↑No. The opportunity figures can be disclosed, but they should not be used as a substitute for the risk side where material physical or transition exposures have already been identified. The preparer should make sure the note presents the relevant downside and upside effects in a way that reflects the current state of assessment, rather than waiting for a perfect model.
Why this matters · Do not let a positive climate story crowd out material downside exposures that are already known.
Framework references
Related framework references
How this disclosure maps across the major reporting frameworks.
Primary
Related & explore
Transition plan for climate change mitigation → Guide ✓Internal carbon pricing → Guide ✓Identification of climate-related risks and scenario analysis → Guide ✓Resilience in relation to climate change → Guide ✓Policies related to climate change mitigation and adaptation → Guide ✓Actions and resources in relation to climate change mitigation and adaptation → Guide ✓Show all 10 related disclosures →
FAQ
Questions this page answers
How do I use the E1-11 page to prepare the disclosure from scratch?+−
Start with the plain-language explainer, then work through the step-by-step ‘how to prepare’ section and the datapoints list. The page is designed to help you move from scoping and data collection to a draft output, rather than to act as an official source.
What data do I need to collect for E1-11 physical climate risk and transition risk?+−
The page lists the datapoints to prepare, including assets and revenue exposed to physical and transition climate risk, the related action coverage, and the locations of exposed assets. It also points to collateral energy classes, potential climate liabilities, financial effects method, key assumptions and limits, and climate opportunity assets and revenue.
How should I scope the E1-11 data so the numbers are internally consistent?+−
Use the page’s datapoint list and the synthetic illustrative example disclosures to check that each subset sits within the relevant total and that your scope is clear. The page also flags common reporting gaps and mistakes, which is useful for spotting inconsistent boundaries or incomplete coverage.
Who should own the E1-11 inputs in practice, and how do I assign responsibilities?+−
The page is set up for use by a sustainability or ESG manager, HR or data owner, and assurance reviewer, so ownership should sit with the people closest to the underlying data and controls. Use the step-by-step preparation section and the evidence pack to decide who gathers, checks, and signs off each input.
What should go into the E1-11 evidence pack for assurance readiness?+−
The page includes an evidence pack with five items specifically for assurance readiness. Use it alongside the six assurance claims to verify so you can show the claim, the risk it addresses, and the supporting evidence in a way an assurance reviewer can follow.
What are the six assurance claims I need to verify for E1-11?+−
The page says there are six assurance claims to verify, each framed around claim, risk, and evidence. Use them as a checklist to test whether the disclosure is supported, complete, and ready for review before you draft the final wording.
What are the most common mistakes on E1-11 disclosures, and how do I avoid them?+−
The page lists common reporting gaps and mistakes, so it is meant to help you spot issues before you finalise the disclosure. A practical way to use it is to compare your draft against the datapoints, evidence pack, and illustrative example to catch missing scope, weak support, or unclear methodology.
How do I turn the E1-11 data into a draft disclosure?+−
Use the draft-output section, which includes visualisation ideas, narrative starters, and a content-index line. That gives you a practical route from raw data and evidence to a first draft that can then be checked against the page’s assurance and gap guidance.
How do I use the E1-11 workbook download to prepare the disclosure?+−
The Download Centre includes a Prep & Assurance workbook in .xlsx format, which is intended to help you organise the preparation and assurance steps. Use it together with the printable Library Card PDF if you want a quick reference while collecting data or reviewing the draft.
Where can I find an example of what an E1-11 disclosure might look like?+−
The page includes synthetic illustrative example disclosures, including a quantitative data table. These are there to show how the disclosure can be structured in practice, not to provide a template you should copy without adapting to your own data and scope.
Can I use the ‘From company reports’ table to see how real organisations disclose E1-11 topics?+−
Yes. The page includes a ‘From company reports’ table that links to real published reports at the pages where the topic is disclosed, which can help you see how the subject is handled in practice.
More questions this page can help with
E1-11 climate change disclosure checklist for physical risk, transition risk and climate opportunitiesWhat evidence do I need for E1-11 assets exposed to physical climate risk?How do I document locations of exposed assets for E1-11?How do I show physical risk action coverage in an E1-11 draft?How do I calculate revenue exposed to transition risk for E1-11?What should I include in key assumptions and limits for E1-11?How do I evidence potential climate liabilities in E1-11?How do I use the E1-11 narrative starters and content-index line?What are the common E1-11 reporting gaps to check before assurance?How do I use the synthetic example table to sanity-check my E1-11 numbers?What is in the E1-11 Prep & Assurance workbook download?Where does the E1-11 page link to real company report examples?
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