ESRS E5 Resources and Circular Economy

Definition

ESRS E5 Resources and Circular Economy. The objective of this Standard is to specify Disclosure Requirements which will enable users of the sustainability statements to understand:

• how the undertaking affects resource use, including the depletion of non-renewable resources and the regenerative production of renewable resources (referred to in this Standard as resource use and circular economy) in terms of material positive and negative actual or potential impacts
• any actions taken, and the result of such actions, to prevent or mitigate actual or potential material negative impacts arising from resource use and circular economy, including its measures to help decoupling its economic growth from the use of materials
• the plans and capacity of the undertaking to adapt its strategy and business model(s) in line with circular economy principles including but not limited to minimising waste, maintaining the value of products, materials and other resources at their highest value and enhancing their efficient use in production and consumption
• the nature, type and extent of the undertaking’s material risks and opportunities related to the undertaking’s impacts and dependencies, arising from resource use and circular economy, and how the undertaking manages them; and
• 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 resource use and circular economy.

Disclosure Requirements

ESRS E5 formulates 5 distinct disclosure requirements.

See Also

Other ESRS components in the Environment cluster:

• ESRS E1 Climate Change
• ESRS E2 Pollution
• ESRS E3 Water and Marine Resources
• ESRS E4 Biodiversity and Ecosystems

References

• EFRAG, Draft ESRS E5 Resource use and circular economy, Nov 2022