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What is IRO (Impacts, Risks, and Opportunities)? Definition and Context

Credibility Check & Framework Comparison

To ensure absolute regulatory accuracy and reliability, we verify definitions across leading international frameworks before presenting our synthesized SME context.

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EFRAG / ESRS

"The central framework of double materiality, requiring companies to disclose their material impacts, risks, and opportunities."
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GRI

"The structural elements of a sustainability report, representing how a company manages its impacts on society and the business risks it faces."
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EcoVadis

"Strategic parameters used to build custom assessment questionnaires based on a company's industry sector, size, and location."

ExecutESG Consolidated Definition

IRO (Impacts, Risks, and Opportunities)

IROs (Impacts, Risks, and Opportunities) are the structural units of analysis used in the CSRD/ESRS Double Materiality Assessment. Instead of assessing generic topics (like "Climate Change"), companies must break them down into specific IROs.

Definitions:

  • Impacts: Real or potential, positive or negative effects on environment and society.
  • Risks: Sustainability-related threats that could harm the company's financials.
  • Opportunities: Sustainability-related benefits that could boost company revenues.

SME Relevance & B2B Inbound Action:

EFRAG requires disclosure of how material IROs are managed. ExecutESG features a pre-populated repository of standard sustainability IROs, saving SMEs weeks of research during setup.

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