ESRS E4 Biodiversity and Ecosystems

From Open Risk Manual

Definition

ESRS E4 Biodiversity and Ecosystems. The objective of this Standard is to specify Disclosure Requirements which will enable users of the sustainability statements to understand:

  • how the undertaking affects biodiversity and ecosystems, in terms of material positive and negative, actual and potential impacts;
  • any actions taken, and the result of such actions, to prevent or mitigate material negative actual or potential impacts and to protect and restore biodiversity and ecosystems
  • the plans and capacity of the undertaking to adapt its strategy and business model(s) in line with (i) respecting the planetary boundaries of the biosphere integrity and land-system change, (ii) targets outlined in the Post-2020 Global Biodiversity Framework of no net loss by 2030, net gain from 2030 and full recovery by 2050, the EU Biodiversity Strategy for 2030 with the targets set under the EU Nature Restoration Plan and Enabling Transformative Change and comparable amended or new frameworks and strategies
  • the nature, type and extent of the undertaking’s material risks and opportunities related to the undertaking’s impacts or dependencies on biodiversity and ecosystems, and how the undertaking manages them
  • the financial effects on the undertaking over the short-, medium- and long-term time horizons of material risks and opportunities arising from the undertaking’s impacts and dependencies on biodiversity and ecosystems.

Disclosure Requirements

ESRS E4 formulates 6 distinct disclosure requirements.

See Also

Other ESRS components in the Environment cluster:

References

  • EFRAG, Draft ESRS E4 Biodiversity and ecosystems, Nov 2022