Disclosure Requirement S4-5 – Targets related to managing material negative impacts, advancing positive impacts, and managing material risks and opportunities

38. The undertaking shall disclose the time-bound and outcome-oriented targets it may have set related to:

• (a) reducing negative impacts on consumers and/or end-users; and/or

• (b) advancing positive impacts on consumers and/or end-users; and/or

• (c) managing material risks and opportunities related to consumers and/or end-users.

39. The objective of this Disclosure Requirement is to enable an understanding of the extent to which the undertaking is using time-bound and outcome-oriented targets to drive and measure progress in addressing material negative impacts, and/or advancing positive impacts on consumers and/or end-users, and/or in managing material risks and opportunities related to consumers and/or end-users.

40. The summarised description of the targets to manage its material impacts, risks, and opportunities related to consumers and/or end-users shall contain the information requirements defined in ESRS 2 MDR-T.

41. The undertaking shall disclose the process for setting the targets, including whether and how the undertaking engaged directly with consumers and/or end-users, their legitimate representatives, or with credible proxies that have insight into their situation in:

• (a) setting any such targets;

• (b) tracking the undertaking’s performance against them; and

• (c) identifying, if any, lessons or improvements as a result of the undertaking’s performance.