ESRS Standard
ESRS Standard
The term"Policy" is synonymous with the term"Policy", which is used within the German version of the ESRS standard.
21 The company shall disclose its defined Targets related to resource use and the Circular economy.
22 The purpose of this disclosure requirement is to provide an understanding of the Targets the company has set to support its policies related to Resource Use and Circular economy and how it manages its Material Impacts, Risks and Opportunities.
23. the description of Targets shall include the information required by ESRS 2 MDR-T Tracking the effectiveness of Policies and Actions through Targets.
24. in accordance with paragraph 21, whether and how the company's Targets relate to Resource inflows and outflows, including Waste, products and materials, and in particular to:
(a) expanding circular product design (e.g. for durability, disassembly, reparability, recyclability, etc.),
b) increasing the Circular material use rate,
c) minimizing the use of primary raw materials,
d) sustainable procurement and use of renewable resources (in line with the cascade principle)
(e) waste management, including preparation for proper treatment; and
f) other aspects related to resource use or the Circular economy.
25 The company shall indicate the level of the Waste hierarchy to which the Targets relate.
26 In addition to the ESRS 2 MDR-T , the company shall state whether Ecological thresholds and company-specific breakdowns have been taken into account when setting the Targets. If this is the case, the company may explain the following:
(a) the Ecological thresholds identified and the method used to determine these thresholds,
b) whether the thresholds are company-specific and, if so, how they were determined; and
c) how responsibility for compliance with the Ecological thresholds is allocated within the company.
27 The company shall indicate, as part of the background information, whether the Targets it has set and disclosed are mandatory (in accordance with legislation) or voluntary.
Application Requirements (AR)
Application Requirements (AR)
AR 14 If the company refers to Ecological thresholds when setting targets, it may rely on the preliminary guidance (Initial Guidance for Business, September 2020) of the Science-Based Targets Initiative for Nature (SBTN) or other guidance with a scientifically recognized methodology that enables the setting of science-based targets by identifying Ecological thresholds and, where appropriate, organization-specific apportionments. Ecological thresholds can be local, national and/or global.
AR 15 When providing information about Targets, the company prioritizes Targets in absolute terms.
AR 16. when providing information on Targets in accordance with paragraph 24, the company shall take into account the production phase, the use phase and the end of life of products and materials.
AR 17. when providing information on targets related to renewable primary raw materials in accordance with paragraph 24(c), the company shall consider how these targets may impact Biodiversity loss, including in light of ESRS E4.
AR 18 The company may specify further Targets in accordance with paragraph 24(f), including in relation to sustainable sourcing. In this case, the company shall explain its definition of sustainable sourcing and describe the links to the Targets referred to in paragraph 22.
AR 19 Targets may cover the company's own activities and/or its upstream and downstream Value chain.
AR 20 The company may indicate whether the Targets address shortcomings related to the Circular economy criteria as set out in delegated acts adopted in accordance with Article 13(2) of Regulation (EU) 2020/852. Where the criteria on prevention of significant harm in relation to the Circular economy set out in the delegated acts adopted pursuant to Article 10(3), Article 11(3), Article 12(2), Article 14(2) and Article 15(2) of Regulation (EU) 2020/852 are not met, the company may indicate whether the target addresses deficiencies related to those criteria.
Examples from previous practice
Examples from previous 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.
E5-3 - Targets for resource use
We are committed to continuing to use 100% certified sustainable biomass for our energy production. We also aim to either reuse, recycle or contribute to the recovery of resources for all components from our global wind farms - both onshore and offshore - and all solar modules from our solar parks.
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