Disclosure focus
E1-2 explains how the undertaking identifies and assesses climate-related risks and opportunities for financial materiality. It covers physical and transition risks, opportunities, the assessment process and relevant time horizons.
The resilience of strategy and business model is reported under E1-3. E1-2 supplies inputs to that analysis but does not itself require the resilience conclusion or its strategic consequences.
Climate-related scenario analysis is disclosed when it is used. The standard does not require every undertaking to use a prescribed 1.5°C and high-emissions pair or a fixed scenario set.
This LRA educational guidance supports disclosure preparation. For the exact requirements, always refer to the official European Commission source.
Before you start
A quick mental checklist before you prepare this disclosure — tick each as you settle it.
Preparation
Key information to prepare
＋ Show E1-2 sub-elements (LRA working checklist)
Describe how climate-related physical and transition risks and opportunities are identified.
Describe how likelihood, magnitude and duration are assessed for financial materiality.
Describe identified physical risks, including relevant hazards, locations, assets and business dependencies.
Describe identified transition risks and their drivers.
Describe identified climate-related opportunities.
State the short-, medium- and long-term horizons used and how they relate to strategic and financial planning.
If scenario analysis is used, describe scenarios, assumptions, ranges and time horizons relevant to the assessment.
Explain the coverage of own operations, assets and business dependencies and any justified limitations.
How to prepare it
1Assess climate-related risks and opportunities for financial materiality across the applicable reporting boundary.
2Collect and reconcile the records for: Identification process; Assessment methodology; Physical risks; Transition risks; Climate-related opportunities; Time horizons; Scenario analysis used; Scope and coverage.
3Scenario-analysis details are required only if scenario analysis is used; resilience conclusions belong to E1-3.
4Draft the response using the defined terms shown in the disclosure focus; do not substitute broader internal labels.
5Review the final wording against every requirement and the supporting governance or data records before sign-off.
Request the data
Request the disclosure evidence
Translate the disclosure into an internal business question — then adapt it to your organisation's own language.
Provide the climate risk and opportunity register, financial-materiality methodology, hazard and location analysis, time horizons, scope reconciliation and scenario documentation where used.
Use the organisation's own role and document names, but preserve the defined ESRS terms and the scope described above.
Better request
Provide the climate risk and opportunity register, financial-materiality methodology, hazard and location analysis, time horizons, scope reconciliation and scenario documentation where used.
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
Test likelihood, magnitude and duration and document how physical locations, assets and business dependencies were considered.
Context note
A location or activity cannot be excluded merely because it was absent from the assessment; explain the applicable boundary or ESRS relief.
Download Centre
Preparation tools & forms
Professional preparation tools for E1-2 — free with an LRA Community membership. Register once (it's free) and every download unlocks, together with the Disclosure Library, templates and the LRA AI Assistant.
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Assurance readiness
For each claim, check the evidence
Evidence pack to prepare
Common reporting gaps
Omitting opportunities or financial materiality.Reporting E1-3 resilience conclusions as E1-2.Presenting scenario analysis as universally mandatory.Using a fixed scenario pair as an ESRS rule.Treating internal boundary choices as automatic exclusions.
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Framework references
Relevant ESRS requirements and related disclosures
Available framework references and nearby disclosures relevant to preparing this requirement.
Primary
Related & explore
Transition plan for climate change mitigation → Guide ✓Internal carbon pricing → Guide ✓Anticipated financial effects from material physical and transition risks and potential climate-related opportunities → Guide ✓Resilience in relation to climate change → Guide ✓Policies related to climate change mitigation and adaptation → Guide ✓Browse all disclosures →
How this library is built
312 published reports indexed
63171 pages with page-level citations
272 practitioner guides
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