Minimum Disclosure Requirement
A minimum disclosure requirement sets the required content of the information that the undertaking includes when it reports on policies, actions, metrics or targets, either pursuant to a Disclosure Requirement in an ESRS or on an entity-specific basis.
Minimum disclosure requirements are a core component of many regulatory frameworks, particularly within the Corporate Sustainability Reporting Directive (CSRD) and the European Sustainability Reporting Standards (ESRS). They define the minimum data and information a company must disclose in its reports to comply with legal requirements.
For sustainability reporting, this means companies must provide both qualitative and quantitative information on environmental, social, and governance (ESG) aspects. Examples include:
- Greenhouse gas emissions (Scope 1, 2, and 3)
- Measures to reduce environmental impacts
- Risks and opportunities related to sustainability issues
The minimum disclosure requirements ensure that reports are transparent and comparable. The specific obligations vary based on industry, company size, and geographic context. Companies that fail to meet these requirements risk sanctions or reputational damage.
For manufacturing companies, meeting these requirements poses a significant challenge. Many businesses must establish a reliable data foundation and adapt existing processes to ensure they can deliver the required disclosures accurately and on time.
