With the new global biodiversity framework finally in place and the EU Corporate Sustainability Reporting Directive (CSRD) adopted by the EU Parliament in November 2022, more and more companies will be required to monitor and report their impact on biodiversity. Therefore, it is time for those covered by the directive to understand and be able to interpret your company's impact on nature.
Background information
The EU Biodiversity Strategy for 2030 is a comprehensive, ambitious and long-term plan to protect nature and reverse ecosystem degradation. The strategy aims to put Europe's biodiversity on the path to recovery by 2030. To achieve this goal, the new CSRD has revised and strengthened EU sustainability reporting.The requirements are extended to all large companies and all listed companies in the EU.
Who is covered by the CSRD?
The Directive will enter into force in the financial year 2023 and reporting will be required:
January 1, 2024 for companies already covered by the Non-Financial Reporting Directive (reporting in 2025), means EU-PIE i.e. >500 employees.
January 1, 2025 for large companies currently not covered by the Non-Financial Reporting Directive, 250 anst 40 MEUR oms, 20 MEUR BO.
1 January 2026 for listed SMEs, small and non-complex credit institutions and captive insurance companies. An exemption will be possible for SMEs during a transitional period, meaning that they will be exempted from the application of the Directive until 2028.
Non-EU companies 2028 (over 150 MEUR turnover in EU, some information)
What is ESRS and how does it relate to biodiversity?
If CSRD is to be considered as the 'task' to be carried out in the context of sustainability reporting, the European Sustainability Reporting Standards (ESRS) are best explained as the 'tool' used to carry out the task. The ESRS are designed to help companies increase transparency and help specify the information to be disclosed such as environmental, social and governance issues. Biodiversity and ecosystems are specifically addressed in ESRS 4.
What happens next?
The European Commission has presented a draft for the ESRS which was published in June 2023. Read Ecogain's comments on the Commission's proposal here,
Want to know more? Watch our webinar from April 20
