IE 1.5. Industry classification

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In the ESG (Environmental, Social, and Governance) reporting process, it is crucial to correctly categorize your company according to the NACE (Statistical Classification of Economic Activities in the European Community) system. This European classification standardizes economic activity sectors, allowing for homogeneous analysis and comparison of data across the European Union.

1. **How to answer this question ?

To correctly answer this question, it is necessary to determine the NACE code that corresponds to the main activity sector of your company. This code is assigned based on the principal nature of the economic activities carried out by your company. You can find this code in your company’s registration documents, or you can look it up online via official databases that list this information.

2. Why is it important ?

Classifying your company according to the NACE code is important because it allows regulators, investors, and other stakeholders to quickly and accurately understand the main activity domain of your company. This understanding is crucial for assessing the specific environmental and social impacts of your sector and benchmarking your company against others in the same sector in ESG studies.

3. Examples :

– Example A: If your company is primarily engaged in clothing manufacturing, the appropriate NACE code might be “14.1 – Manufacture of wearing apparel, except fur apparel.”

– Example B: For a company specialized in software development, the NACE code would be “62.01 – Computer programming.”

These codes are fundamental to ensuring adequate classification and relevant analysis of your company’s ESG performance. Therefore, it is crucial to select the NACE code most representative of your primary activity.

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