Questions & Answers
Could you clarify the categorisation of the following waste streams (whether under ESRS E5 paragraph 37 (b) (iii), (c) (ii) or (c) (iii))? Composting of organic waste, fermentation of organic waste and incineration of waste that results in energy production (which then is used/sold).
- Waste stream
- categorisation of
Background
ESRS E5-5 states that an undertaking shall disclose information on its resource outflows, including waste, related to its material impacts, risks and opportunities.
ESRS E5 paragraph 37 (b) and (c) require a breakdown by certain waste management operations, namely:
(a) waste not directed to disposal operations by recovery operation type (E5 paragraph 37(b)(i)-(iii), which connects to the list of recovery operations in Annex II of the Waste Directive; and
(b) waste directed to disposal operations by waste treatment types (E5 paragraphs 37(c)(i)-(iii), which connect to the list of disposal operations in Annex I of the Waste Directive.
The ESRS Glossary’s definition of ‘incineration’ reads as follows: ‘Incineration is the controlled burning of waste at high temperature with or without energy recovery.’
Answer
Composting and fermentation of organic wastes are considered a form of recycling – see Directive 2008/98/EC of the European Parliament and of the Council (Waste Framework Directive, WFD), Annex II, ‘R3 Recycling/reclamation of organic substances which are not used as solvents (including composting and other biological transformation processes)’ – and a recovery operation for the purposes of ESRS 5 paragraph 37 (b) (ii).
According to Annex l of the WFD, incineration without energy recovery is considered a disposal operation (included as ‘D10 Incineration on land’) and is classified under ESRS E5 paragraph 37 (c) (i) Annex ll of the WFD, which sets out the different types of recovery operations. Incineration with energy recovery is considered disposal if the criteria is not met (as explained in the footnote to R1 of Annex ll, of the WFD) and is to be classified under the ‘R1 Use principally as a fuel or other means to generate energy’ operation. If classified as an ‘R1 Use principally as a fuel or other means to generate energy’ operation, incineration with energy recovery can be considered under ESRS E5 paragraph 38(b)(iii) as ‘other recovery operations’.
See Question ID 283 – Whether waste incineration is a disposal operation.