As part of the disclosures required by SBM-1 of ESRS 2 Disclosure requirements, companies need to disclose a breakdown of the revenues by ESRS sector. This article mentions which sector groups + sectors need to be reviewed. Below is a description of how to choose relevant sectors.
Choosing the applicable sector-specific ESRS
Sector identification: Report according to the sector-specific [draft] ESRS for your significant sectors. A sector is considered significant if:
It generates more than 10% of the undertaking's total revenue, or
It is associated with material actual or potential negative impacts.
Value chain consideration: In line with ESRS 1, include information on material impacts, risks, and opportunities related to direct and indirect business relationships within the value chain (upstream or downstream).
Internal activities: Also consider internal activities that don't produce revenue but are consolidated when they exceed 10% of total revenue or are connected to material impacts. These involve intra-group transactions that are eliminated during financial statement preparation.
Multiple sectors: If more than one significant sector is identified, apply all relevant sector-specific ESRS.
Sector determination: Identify your operations within the 35 sectors and 15 sector groups. Note that the sector group classification does not impact the required disclosures.
For more information on what activities fall under the sectors, see appendix A of this EFRAG article: Sector Classification SEC 1
Sector Group | Sector |
Agriculture | Agriculture, Farming and Fishing |
| Forestry and wood products |
Construction | Construction and Engineering |
Utilities | Power Production and Energy Utilities |
| Water and Waste Services |
Entertainment | Recreation and Leisure |
Financial Institutions | Capital Markets |
| Credit Institutions |
| Insurance |
Health Care | Health Care and Services |
Hospitality | Accommodations |
| Food and Beverage Services |
Durable Goods | Household durables n.e.c |
Manufacturing | Aerospace, defence and services |
| Bioenergy |
| Chemicals and polymers |
| Construction Materials |
| Electronics and electrical equipment |
| Food and Beverages |
| Machinery and Equipment |
| Medical Instruments |
| Metal Processing |
| Motor Vehicles |
| Pharma and Biotechnology |
| Textiles, Accessories, Footwear and Jewelleries |
Mining | Mining, Quarrying and Coal |
| Oil and Gas |
Real Estate | Real Estate |
Sales and Trade | Sales and Trade |
Services | Education |
| Professional Services |
Technology | Information Technology |
| Media and Communication |
Transportation | Other Transportation |
| Road Transport |