ESRS Standard
ESRS Standard
11. the company shall disclose the extent to which its Impacts, Dependencies, Risks and Opportunities related to biodiversity and ecosystems result from and trigger the alignment of its strategy and Business model.
(12) The objective of this disclosure requirement is to provide an understanding of the resilience of the company's strategy and business model in relation to biodiversity and ecosystems and the alignment of the company's strategy and business model with relevant local, national and global biodiversity and ecosystem-related policy Targets.
13 The company describes the resilience of its strategy and business model in relation to biodiversity and ecosystems. The description includes the following:
(a) an assessment of the resilience of the current business model and strategy to Physical risks, Transition risks and Systemic risks related to biodiversity and ecosystems,
b) the scope of the resilience analysis in relation to the company's own activities and its upstream and downstream Value chain and in relation to the Risks considered in this analysis,
c) the key assumptions made,
d) the time horizons used,
e) the results of the resilience analysis; and,
(f) the involvement of stakeholders, including, where appropriate, persons with indigenous and local knowledge.
14. if the information referred to in this disclosure requirement is provided by the entity as part of the information required by ESRS 2 SBM-3, the entity may refer to the information it has provided under ESRS 2 SBM-3.
15. the company may indicate its Transition plan to align and ultimately achieve its business model and strategy with the vision of the Kunming-Montreal Global Biodiversity Framework and its relevant Targets and Targets, with the EU Biodiversity Strategy for 2030, and with respect for Planetary boundaries in the context of biosphere integrity and land system change.
Application Requirements (AR)
Application Requirements (AR)
AR 1. in stating its Transition plan, the company may:
(a) explain how it will adapt its strategy and business model to enhance and ultimately align with relevant local, national and global policy and targets related to biodiversity and ecosystems, including the vision of the Kunming-Montreal Global Biodiversity Framework and its relevant Targets and Targets, the EU Biodiversity Strategy for 2030 and Directives 2009/147/EC and 92/43/EEC (EU Birds and Habitats Directives) and, where applicable, Planetary boundaries related to biosphere integrity and land system change,
b) Include information about its own activities and explain how it responds to material impacts identified in its materiality analysis in accordance with ESRS 2 IRO-1 Description of the Processes for Identifying and Assessing Material Impacts, Risks and Opportunities within its upstream and downstream Value chain,
c) explain how its strategy interacts with its Transition plan,
d) explain its contribution to the Impact drivers related to biodiversity and ecosystems and its potential mitigation measures according to the mitigation hierarchy, as well as the key path dependencies and committed assets and resources (e.g. crops, Raw materials) related to changes in biodiversity and ecosystems,
e) provide an explanation and quantification of the company's investments and financial resources to support the implementation of its Transition plan, with reference to the key performance indicators of the taxonomy-compliant CapEx and, where applicable, the CapEx plans that the company has implemented in accordance with Commission Delegated Regulation (EU) 2021/2178,
f) if it has economic activities covered by the Delegated Regulations on biodiversity under the Taxonomy Regulation, explain any Targets or plans (CapEx, CapEx plans) it has in place to align its economic activities (revenues, CapEx) with the criteria set out in those Delegated Regulations,
g) explain how compensatory measures will be used as part of the Transition Plan and, if so, where compensatory measures will be used, the extent to which this will be done in relation to the Transition Plan as a whole and whether the hierarchy of remedies has been taken into account,
h) explain how the process of implementing and updating the Transition plan will be managed,
(i) explain how it measures progress and, in particular, identify the Metrics and methodologies used for this purpose,
j) state whether the Administrative, management and supervisory bodies have approved the Transition plan; and
k) identify the current challenges and constraints to developing a plan in relation to the areas of significant impacts and explain how the entity is addressing these challenges.
AR 2. In stating a Transition plan, the company may, for example, refer to the following Targets of the EU Biodiversity Strategy for 2030:
(a) To reverse the decline of pollinators.
b) The risk and use of chemical pesticides should be reduced by 50% and the use of more hazardous pesticides should also be reduced by 50%.
c) At least 25% of agricultural land is to be farmed organically and the use of agroecological methods is to be significantly increased.
d) Three billion new trees are to be planted in the EU in full compliance with ecological principles.
e) Significant progress is to be made in the remediation of contaminated Soil.
f) At least 25,000 kilometers of rivers to be restored as free-flowing rivers.
g) Nutrient losses from fertilizers are to be reduced by 50%, which will lead to a reduction in fertilizer use of at least 20%.
h) Negative impacts on sensitive species and Habitats, including from fishing and seabed extraction activities, are to be significantly reduced in order to achieve good environmental status.
AR 3. when indicating a Transition plan, the company may also refer to the Sustainable Development Targets, in particular the following:
(a) SDG 2 - End hunger, achieve food security and improved nutrition and promote sustainable agriculture,
b) SDG 6 - Ensure availability and sustainable management of water and sanitation for all
c) SDG 14 - Conserve and sustainably use the oceans, seas and marine resources for sustainable development, and
d) SDG 15 - Protect, restore and promote sustainable use of terrestrial ecosystems, sustainably manage forests, combat desertification, and halt and reverse land degradation and halt biodiversity loss.
Examples from past practice
Examples from past practice
Examples serve only as an indication of how a disclosure requirement has been stated by other companies to date. Audited ESRS reports are not yet available. There is no guarantee of accuracy and completeness.
E4-1 - Biodiversity Action Plan (excerpt)
The Biodiversity Action Plan for Urban Production Sites aims to promote biodiversity and climate adaptation, taking into account site-specific requirements as well as legal and safety requirements. Actions are based on fundamental principles covering vegetation and flora, water and soil management, people and context suitability, and ecological management. This involves examining how adjustments to the company's strategy and business model can both minimize Dependencies and Risks and create Opportunities to promote biodiversity and sustainable ecosystems.
To increase plant diversity, native species are promoted, green spaces are maintained sustainably, for example by delaying mowing in order to complete flowering phases, and pesticides and chemical fertilizers are avoided. Unmown areas are maintained to create insect habitats. In the area of water and soil management, attention is paid to the sustainable use of resources by fencing off water bodies in an animal-friendly manner and protecting the soil structure through appropriate actions.
With regard to people and context suitability, it is ensured that safety and production requirements are met. This includes maintaining visibility for vehicle drivers, a safety distance of 10 meters between large trees and buildings to prevent fire hazards and the integration of animal-friendly fencing in potentially dangerous areas. Active ecological management ensures that local conditions are taken into account by regularly evaluating and adapting actions. This is always done with the approval of local management and safety officers, taking into account seasonal and ecological characteristics.
All actions must comply with local and national legal requirements. This may make it necessary to obtain permits for relief changes or tree felling, for example. Finally, the integration of the production sites into the surrounding landscape is emphasized, with analyses being carried out to determine which native species are present in the area and their needs being met where possible in order to align the actions in an ecosystem-friendly manner.
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