Questions & Answers
Is the ESRS 1 Disclosure Requirement SBM-3 metric to be reported for ESRS E4 if biodiversity was assessed as not material for the company’s own operations but material only for the upstream value chain? The SBM-3 metric specifically refers to the company’s own sites, i.e. own operations. Additionally, no sites were found located in or near biodiversity-sensitive areas that have negative impacts on these areas.
- Value Chain
Background
ESRS E4 paragraph 16: states: ‘The undertaking shall disclose:
(a) a list of material sites in its own operations, including sites under its operational control, based on the results of paragraph 17 (a). The undertaking shall disclose these locations by:
i. specifying the activities negatively affecting biodiversity-sensitive areas;
ii. providing a breakdown of sites according to the impacts and dependencies identified, and to the ecological status of the areas (with reference to the specific ecosystem baseline level) where they are located; and
iii. specifying the biodiversity-sensitive areas impacted, for users to be able to determine the location and the responsible competent authority with regard to the activities specified in paragraph 16 (a) (i);
(b) whether it has identified material negative impacts with regard to land degradation, desertification or soil sealing; and
(c) whether it has operations that affect threatened species.
Answer
If the topic ‘biodiversity and ecosystems’ has been identified as material for the undertaking’s upstream (or downstream) value chain only, the undertaking:
(a) would not disclose the information required by ESRS E4 paragraph 16 (a), which refers to own operations only;
(b) would be required to disclose information required by ESRS E4 paragraph 16 (b) in connection with its upstream (or downstream) value chain, as ESRS E4 paragraph 16 (b) applies not only to impacts connected to the undertaking’s sites in its own operations; and
(c) In relation to ESRS E4 paragraph 16 (c), the undertaking would be required to disclose whether it has operations that affect threatened species (this refers to own operations and not to operations in the upstream or downstream value chain). If ESRS E4 is material and does not have own operations that affect threatened species, it shall state so.
Finally, where appropriate, following ESRS 1 paragraph 11 the undertaking shall include information, including metrics (see IG 2 Value chain paragraph 79) related to its upstream and downstream value chain, on an entity-specific basis.
Relations
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The undertaking shall disclose: | |
The undertaking shall disclose: | |
The undertaking shall disclose: |