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
Before you start
A quick mental checklist before you prepare this disclosure — tick each as you settle it.
Preparation
Key information to prepare
| Preparation field | What to capture | Evidence hint | Owner |
|---|---|---|---|
| Identification process | Describe how climate-related physical and transition risks and opportunities are identified. | Dated source records, governance papers and approval evidence supporting identification process. | Sustainability reporting |
| Assessment methodology | Describe how likelihood, magnitude and duration are assessed for financial materiality. | Dated source records, governance papers and approval evidence supporting assessment methodology. | Sustainability reporting / Finance |
| Physical risks | Describe identified physical risks, including relevant hazards, locations, assets and business dependencies. | Dated source records, governance papers and approval evidence supporting physical risks. | Sustainability reporting / Operations |
| Transition risks | Describe identified transition risks and their drivers. | Dated source records, governance papers and approval evidence supporting transition risks. | Sustainability reporting |
| Climate-related opportunities | Describe identified climate-related opportunities. | Dated source records, governance papers and approval evidence supporting climate-related opportunities. | Sustainability reporting |
| Time horizons | State the short-, medium- and long-term horizons used and how they relate to strategic and financial planning. | Dated source records, governance papers and approval evidence supporting time horizons. | Sustainability reporting / Finance |
| Scenario analysis used | If scenario analysis is used, describe scenarios, assumptions, ranges and time horizons relevant to the assessment. | Dated source records, governance papers and approval evidence supporting scenario analysis used. | Sustainability reporting |
| Scope and coverage | Explain the coverage of own operations, assets and business dependencies and any justified limitations. | Dated source records, governance papers and approval evidence supporting scope and coverage. | Sustainability reporting |
How to prepare it
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 verified email access. Enter the code we send you once and use downloads, report links and the LRA AI Assistant for 24 hours.
Assurance readiness
For each claim, check the evidence
| Claim | Risk | Evidence to check |
|---|---|---|
| Identification process is reported accurately and completely. | The response omits, misclassifies or overstates identification process. | Dated source records, governance papers and approval evidence supporting identification process. |
| Assessment methodology is reported accurately and completely. | The response omits, misclassifies or overstates assessment methodology. | Dated source records, governance papers and approval evidence supporting assessment methodology. |
| Physical risks is reported accurately and completely. | The response omits, misclassifies or overstates physical risks. | Dated source records, governance papers and approval evidence supporting physical risks. |
| Transition risks is reported accurately and completely. | The response omits, misclassifies or overstates transition risks. | Dated source records, governance papers and approval evidence supporting transition risks. |
| Climate-related opportunities is reported accurately and completely. | The response omits, misclassifies or overstates climate-related opportunities. | Dated source records, governance papers and approval evidence supporting climate-related opportunities. |
| Time horizons is reported accurately and completely. | The response omits, misclassifies or overstates time horizons. | Dated source records, governance papers and approval evidence supporting time horizons. |
| Scenario analysis used is reported accurately and completely. | The response omits, misclassifies or overstates scenario analysis used. | Dated source records, governance papers and approval evidence supporting scenario analysis used. |
| Scope and coverage is reported accurately and completely. | The response omits, misclassifies or overstates scope and coverage. | Dated source records, governance papers and approval evidence supporting scope and coverage. |
Evidence pack to prepare
Common reporting gaps
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Framework references
Relevant ESRS requirements and related disclosures
Available framework references and nearby disclosures relevant to preparing this requirement.
ESRS
E1-2
within ESRS E1: Climate Change
Related & explore
More in ESRS E1 → Browse full catalogue → Disclosure Library home → Search all disclosures →
Go deeper · E1-2
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