Questions & Answers
What is the meaning of ‘Direct impact drivers of biodiversity loss’?
Related question derived from the background provided by the submitter: ‘Does “direct” refer to own operations, or does “direct” refer to impacts caused anywhere in the value chain causing a direct impact on biodiversity?’
- Biodiversity loss
- direct impact drivers of biodiversity loss
Background
ESRS 1 paragraph AR 16 states: ‘When performing its materiality assessment, the undertaking shall consider the following list of sustainability matters covered in the topical ESRS …
…’.
ESRS E4 paragraph AR 4 states: ‘The materiality assessment under ESRS E4 includes the undertaking’s:
(a) contribution to direct impact drivers on biodiversity loss:
i. climate change;
ii. land-use change (e.g. land artificialisation), freshwater-use change and sea-use change;
iii. direct exploitation;
iv. invasive alien species ;
v. pollution; and
vi. others.
…’
‘Impact Drivers’ is defined in the ESRS Glossary as: ‘All the factors that cause changes in nature, anthropogenic assets, nature’s contributions to people and a good quality of life. Direct drivers of change can be both natural and anthropogenic; they have direct physical (mechanical, chemical, noise, light, etc.) and behaviour-affecting impacts on nature. They include, inter alia, climate change, pollution, different types of land use change, invasive alien species and zoonoses, and exploitation. Indirect impact drivers operate diffusely by altering and influencing direct drivers (by affecting their level, direction or rate) as well as other indirect drivers. Interactions between indirect and direct drivers create different chains of relationship, attribution, and impacts, which may vary according to type, intensity, duration, and distance. These relationships can also lead to different types of spill-over effects. Global indirect drivers include economic, demographic, governance, technological and cultural ones. Special attention is given, among indirect drivers, to the role of institutions (both formal and informal) and impacts of the patterns of production, supply and consumption on nature, nature’s contributions to people and good quality of life.’
The ESRS E4 Biodiversity and Ecosystems Basis for Conclusions (March2023) states: ‘According to the IPBES, pressures on biodiversity and ecosystems, also termed key biodiversity loss impact drivers, originate from five categories of impact drivers: land-use or habitat change, climate change, pollution, natural resource use and exploitation, as well as invasive species …’.
The term ‘Direct drivers (of biodiversity and ecosystem change)’ is a term first coined by the Intergovernmental Science-Policy Platform on Biodiversity and Ecosystem Services (IPBES). The IPBES defines direct drivers: ‘Direct drivers (natural and anthropogenic) are drivers that unequivocally influence biodiversity and ecosystem processes (also referred to as “pressures”).’ Find more information, also on the definition of ‘indirect drivers’, here: https://www.ipbes.net/models-drivers-biodiversity-ecosystem-change.
Answer
The term ‘direct’ refers to the immediate or unambiguous pressure or impact that climate change, land/fresh water/sea-use change, pollution, direct exploitation and invasive alien species have on biodiversity and ecosystems’ loss or degradation. The term ‘direct’ in this context does not refer to whether the impact originates from the undertaking’s own operations or from its upstream or downstream value chain. Direct impact drivers of biodiversity loss can be connected to the undertaking’s own operations, to its upstream or downstream value chain or to all of them. The term ‘direct drivers’ was first introduced by the Intergovernmental Science-Policy Platform on Biodiversity and Ecosystem Services (IPBES; see background).
For example, consider an undertaking that uses timber as a primary material in one of its products. The extraction of timber (a direct exploitation of a natural resource, which is one of the five impact drivers) causes a negative impact on the natural habitat from which it is sourced, leading to ecosystem degradation and biodiversity loss. Whether the extraction is carried out by the undertaking itself (own operations) or, for instance, by one of its suppliers (upstream value chain), this exploitation of natural resources would be a ‘direct driver’ of ecosystem and biodiversity loss in that specific location.
In the context of the ESRS, ‘Direct impact drivers of biodiversity loss’ and ‘Direct drivers of biodiversity and ecosystems change’ can be used interchangeably (see also the ESRS Glossary’s definition of ‘Impact drivers’ in the background above).
Relations
Paragraph | Content |
|---|---|
When performing its materiality assessment, the undertaking shall consider the following list of sustainability matters covered in the topical ESRS. When, as a result of the undertaking’s materiality assessment (see ESRS 2 IRO-1), a given sustainability matter in this list is assessed to be material, the undertaking shall report according to the corresponding Disclosure Requirements of the relevant topical ESRS. Using this list is not a substitute for the process of determining material matters. This list is a tool to support the undertaking’s materiality assessment. The undertaking still needs to consider its own specific circumstances when determining its material matters. The undertaking, where necessary, also shall develop entity-specific disclosures on material impacts, risks and opportunities not covered by ESRS as described in paragraph 11 of this Standard. | |
The materiality assessment under ESRS E4 includes the undertaking’s: | |
The materiality assessment under ESRS E4 includes the undertaking’s: | |
When performing its materiality assessment, the undertaking shall consider the following list of sustainability matters covered in the topical ESRS. When, as a result of the undertaking’s materiality assessment (see ESRS 2 IRO-1), a given sustainability matter in this list is assessed to be material, the undertaking shall report according to the corresponding Disclosure Requirements of the relevant topical ESRS. Using this list is not a substitute for the process of determining material matters. This list is a tool to support the undertaking’s materiality assessment. The undertaking still needs to consider its own specific circumstances when determining its material matters. The undertaking, where necessary, also shall develop entity-specific disclosures on material impacts, risks and opportunities not covered by ESRS as described in paragraph 11 of this Standard. | |
When performing its materiality assessment, the undertaking shall consider the following list of sustainability matters covered in the topical ESRS. When, as a result of the undertaking’s materiality assessment (see ESRS 2 IRO-1), a given sustainability matter in this list is assessed to be material, the undertaking shall report according to the corresponding Disclosure Requirements of the relevant topical ESRS. Using this list is not a substitute for the process of determining material matters. This list is a tool to support the undertaking’s materiality assessment. The undertaking still needs to consider its own specific circumstances when determining its material matters. The undertaking, where necessary, also shall develop entity-specific disclosures on material impacts, risks and opportunities not covered by ESRS as described in paragraph 11 of this Standard. | |
The materiality assessment under ESRS E4 includes the undertaking’s: | |
When performing its materiality assessment, the undertaking shall consider the following list of sustainability matters covered in the topical ESRS. When, as a result of the undertaking’s materiality assessment (see ESRS 2 IRO-1), a given sustainability matter in this list is assessed to be material, the undertaking shall report according to the corresponding Disclosure Requirements of the relevant topical ESRS. Using this list is not a substitute for the process of determining material matters. This list is a tool to support the undertaking’s materiality assessment. The undertaking still needs to consider its own specific circumstances when determining its material matters. The undertaking, where necessary, also shall develop entity-specific disclosures on material impacts, risks and opportunities not covered by ESRS as described in paragraph 11 of this Standard. |