Chapter 03 · Reporting & strategyReporting, Disclosure & Frameworks
Impacts, risks and opportunities (IROs)
Definition
Impacts, risks and opportunities (IROs) are the actual or potential effects of an undertaking on people or the environment, the sustainability-related uncertainties that may affect the undertaking, and the opportunities that may create benefits for the undertaking or others.
References
the identification unit of ESRS reporting
Corporate Sustainability Reporting Directive (CSRD)CSRD · verified 2026-08-22Official text
This reference provides supporting context for how “Impacts, risks and opportunities (IROs)” is defined and used.
Overview
How it is used
Standard setters, scheme owners, certification bodies, auditors and organisations seeking assurance use “Impacts, risks and opportunities (IROs)” in standards, certification, conformity assessment, audits, controls and assurance engagements.
In each case, the user should state the named standard or scheme, version, scope, criteria, assurance level and competent decision-maker; otherwise, the same term may be applied to materially different situations. In this context, it refers to the effects an undertaking has or may have, the sustainability-related uncertainties it faces, and the potential benefits it may realise.
Why it matters
It influences the criteria, evidence and level of confidence attached to an assessment or claim. Clear use of “Impacts, risks and opportunities (IROs)” helps decision-makers distinguish an intention, activity or label from demonstrated results and reduces the risk of misleading claims.