Questions & Answers
(1) Could you clarify the level of detail required in reporting pollutants (including microplastics)?
(2) When is it possible to resort to estimations?
(3) Do all the pollutants listed in the E-PRTR and all microplastics need to be measured?
- Pollution
- microplastics
- granularity
Background
To better address the issue addressed by the submitter, it was agreed to change the question received, ‘The level of detail required in measuring pollutants is very unclear; could you please clarify?’ to the question above.
ESRS 1 paragraph 11 states: ‘In addition to the disclosure requirements laid down in the three categories of ESRS, when an undertaking concludes that an impact, risk or opportunity is not covered or not covered with sufficient granularity by an ESRS but is material due to its specific facts and circumstances, it shall provide additional entity-specific disclosures to enable users to understand the undertaking’s sustainability-related impacts, risks or opportunities. Application requirements AR 1 to AR 5 provide further guidance regarding entity-specific disclosures.’
ESRS 1 paragraph 54 states: ‘When needed for a proper understanding of its material impacts, risks and opportunities, the undertaking shall disaggregate the reported information … (b) by significant site or by significant asset, when material impacts, risks and opportunities are highly dependent on a specific location or asset.’ ESRS 1 paragraph 69 states: ‘There are circumstances where the undertaking cannot collect the information about its upstream and downstream value chain as required by paragraph 63 after making reasonable efforts to do so. In these circumstances, the undertaking shall estimate the information to be reported about its upstream and downstream value chain by using all reasonable and supportable information, such as sector-average data and other proxies’.
ESRS 1 paragraph 72 states: ‘The incorporation of estimates made using sector-average data or other proxies shall not result in information that does not meet the qualitative characteristics of information (see Chapter 2 and Section 7.2 Sources of estimation and outcome uncertainty of this Standard)’.
ESRS E2 paragraph 28) states: ‘The undertaking shall disclose the amounts of: (a) each pollutant listed in Annex II of Regulation (EC) No 166/2006 of the European Parliament and of the Council (European Pollutant Release and Transfer Register ‘E-PRTR Regulation’) emitted to air, water and soil, with the exception of emissions of GHGs which are disclosed in accordance with ESRS E1 Climate Change; (b) microplastics generated or used by the undertaking.’
ESRS E2 paragraph 29 states: ‘The consolidation shall include only the emissions from facilities for which the applicable threshold value specified in Annex II of Regulation (EC) No 166/2006 is exceeded.’
ESRS E2-4 paragraph 31 states: ‘When an inferior methodology compared to direct measurement of emissions is chosen to quantify emissions, the reasons for choosing this inferior methodology shall be outlined by the undertaking. If the undertaking uses estimates, it shall disclose the standard, sectoral study or sources which form the basis of its estimates, as well as the possible degree of uncertainty and the range of estimates reflecting the measurement uncertainty.’
ESRS E2 paragraph AR 26 states: ‘When providing information on pollutants , the undertaking shall consider approaches for quantification in the following order of priority: (a) direct measurement of emissions, effluents or other pollution through the use of recognised continuous monitoring systems (e.g., AMS Automated Measuring Systems); (b) periodic measurements; (c) calculation based on site -specific data; (d) calculation based on published pollution factors; and (e) estimation.’
ESRS E2 paragraph 11 states: ‘The undertaking shall describe the process to identify material impacts, risks and opportunities and shall provide information on: (a) whether the undertaking has screened its site locations and business activities in order to identify its actual and potential pollution-related impacts, risks and opportunities in its own operations and upstream and downstream value chain, and if so, the methodologies, assumptions and tools used in the screening; (b) whether and how the undertaking has conducted consultations, in particular with affected communities.’
Regulation (EU) 2024/1244 (IEPR), Annex I, provides a list of activities that fall within its scope. Recital (12) states: ‘To comply with the requirements of the Protocol, the reporting requirements provided for in this Regulation should apply to all activities listed in Annex I to the Protocol and, in fulfilling those reporting requirements, the facility to which the installation, or part thereof, belongs should be indicated. In addition, and with a view to achieving synergies with related Union environmental law affecting industrial installations, the scope of this Regulation should also be aligned with the industrial activities under Annexes I and Ia to Directive 2010/75/EU and with certain activities covered by Directive (EU) 2015/2193 of the European Parliament and of the Council’.
Answer
(1) Could you clarify the level of detail required in reporting pollutants (including microplastics)?
The level of detail required in reporting pollutants is not specific. The selection of pollutants that the undertakings will need to disclose will depend on the pollutants (including microplastics) that are material for their specific operations (ESRS E2 Disclosure Requirement IRO-1). Therefore, the undertaking will need to conduct a materiality assessment, including being transparent on whether any screening of its site locations and business activities were conducted, considering the pollutants they emit, the quantities, and the associated impacts of those emissions, as well as any consultations with the communities that are affected by its operations where appropriate. In addition, the undertaking shall disaggregate the information by significant site or by significant asset when material pollution-related impacts, risks and opportunities are highly dependent on a specific location or asset. For further information on the disaggregation of reported pollutant emissions, please consult ID 440.
(2) When is it possible to resort to estimations?
Estimations are generally considered a less preferable measuring methodology compared to direct observations. However, should the undertaking be compelled to resort to reporting by estimation (e.g. due to the unfeasibility of collecting information about its upstream and downstream value chain), it should provide an explanation as well as a description of the methodologies, assumptions and tools used. The incorporation of estimates made using sector-average data or other proxies shall meet the qualitative characteristics of information as defined in ESRS 1. In the specific case of microplastics, it is worth noting that estimations may be the only feasible measuring methodology (particularly in the case of wear and tear of larger pieces of plastics, such as car tires or synthetic textiles) and, therefore, undertakings will most likely resort to estimations when reporting on microplastics.
(3) Do all the pollutants listed in the E-PRTR and all microplastics need to be measured?
In terms of E-PRTR pollutants, considering that the undertaking will need to refer to all material pollutants, it will report only on each material pollutant listed in the E-PRTR under ESRS E2-4 paragraph 28(a), whereas other pollutants assessed as material but not included in the E-PRTR are to be reported under entity-specific disclosures.
See also Question ID 441 - Microplastics for further information on microplastics and to Question ID 440 - Pollutants emissions - disaggregation to better understand the disaggregation level needed when reporting on pollutant emissions.
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