ESRS Standard
ESRS Standard
ESRS 2 - General disclosures
ESRS 2 - General disclosures
8 The requirements in this section should be read in conjunction with the disclosure requirements in Chapter 2 Governance, Chapter 3 Strategy and Chapter 4 Management of Impacts, Risks and Opportunities of ESRS 2.
9 The resulting disclosures are presented together with the disclosures required by ESRS 2, with the exception of ESRS 2 SBM-3, where the entity has the option to combine the disclosures with the topic-related disclosures.
10 In addition to the requirements in ESRS 2, this standard also includes the topic-related disclosure requirement E4-1 Transition plan and consideration of biodiversity and ecosystems in strategy and business model.
16 The entity shall disclose the following:
(a) a list of the material sites it operates, including sites under its Operational control, based on the findings in paragraph 17(a). With respect to these sites, the entity shall disclose the following:
i. the activities that have negative impacts in Biodiversity sensitive areas, (80)
ii. a breakdown of the sites according to the Impacts and Dependencies identified and the ecological status of the areas (with reference to the specific ecosystem reference values) in which they are located; and
iii. the Biodiversity sensitive areas affected, to enable Users to identify the location and the competent authority in relation to the activities referred to in paragraph 16(a)(i).
(b) whether it has identified significant negative impacts in terms of Land degradation, Desertification or Soil sealing (81); and
(c) whether it carries out activities that have an impact on Threatened species. (82)
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.SBM-3 - Material Impacts, Risks and Opportunities and their Interaction with Strategy and Business Model
Impact materiality related to the cultivation of cotton
As we are aware of the importance of indirect impacts, we began analyzing Risks in our cotton supply chain in India in 2024. Cotton accounts for around 45% of the Raw materials used for our collections. To identify sensitive sites at farm and plantation level, spatial data from the Indian state of Gujarat, the most important cotton growing region, was combined with biodiversity and ecosystem data from the Integrated Biodiversity Assessment Tool (IBAT).
Our analysis revealed that there are 36 Threatened species within a 50-kilometer radius of Gujarat, including six that are classified as Critically Endangered. The main reason for the extinction risk of these species is the over-exploitation of ecosystems leading to the loss of natural Habitats. This trend is exacerbated by the expansion of human settlements, road construction and the cultivation of crops such as cotton.
Furthermore, we identified an important biodiversity hotspot within the analyzed area. In particular, the illegal pumping of water by local farmers poses a significant risk as it enables the cultivation of crops such as cumin and cotton. This practice has serious negative impacts on various waterbird species that nest in the region.
In light of these findings, we recognize the Risks to biodiversity associated with cotton sourcing from Gujarat. We will monitor and consider these Risks in our strategic planning going forward in order to take appropriate actions and better protect biodiversity.
This article has been machine translated. In case of errors, please contact [email protected].