Tag Archive for: CSRD

BFBI is delighted to host a guest article by Adam Condon, a student of The Business of Nature Positive module at Trinity College Dublin – an exploration of more sustainable options to address the nature-related impacts of waste generation from energy products after marathon events.

A Nature-Positive Roadmap for Sports Nutrition:

Finish Line Fallacy

Three weeks after last October’s Dublin Marathon, I was walking my dog along the road when he nosed something silver out of the hedgerow. A crumpled energy gel wrapper, still sticky with maltodextrin, I grabbed out of his mouth. We hadn’t walked fifty metres before he found another. Then another. The race was long over. The waste was not.

The maths here is grim but worth doing. Around 25,000 runners line up each year, and most marathon fuelling plans call for roughly ten gels across the 42 kilometres. That is potentially up to 250,000 single-use wrappers dropped in a single morning across Dublin’s roads, parks, and canals. And that only counts race day. Factor in the training block, months of weekend long runs through the Phoenix Park, along the city centre, out past UCD, and the real number climbs far higher. Silver sticky wrappers sit in hedgerows, parks, and gardens, from July to October, waiting for the dogs, foxes, and wildlife that smell food and pull them loose.

These wrappers cannot be recycled. They are multi-material laminates, meaning, plastic film fused to aluminium foil, and no recycling site in the country will take them (Ellen MacArthur Foundation, 2016). Because they can’t be recycled, over time they fragment into microplastics that leach into soil and waterways, entering food chains and degrading the Dublin biodiversity we are trying to restore (UNEP, 2021). For a sport built on being outdoors, that is a genuinely sticky irony.

A Product That Depletes Nature Twice

The litter we can see is only half the problem. This product depletes nature twice: once when it is made, and again when it is tossed. Working through the sports nutrition value chain, I was shocked by how deep the upstream damage runs. The fuel inside most gels, maltodextrin, comes from intensive corn or wheat monocultures. These systems strip soil and organic matter, lean on synthetic nitrogen fertiliser, and generate nutrient runoff that leads to algal blooms and aquatic dead zones far from the farm (Tilman et al., 2002). The wrapper is worse. Its aluminium foil lining starts life as bauxite ore, extracted through open-pit mining that tears through tropical forests and leaves behind toxic red mud lagoons in place of thriving ecosystems (Power, Gräfe and Klauber, 2011).

Through a double materiality lens, gel brands carry nature-related risk at both ends of their value chain. Upstream, they depend on degraded ecosystems for raw materials. Downstream, the product waste directly harms local biodiversity. Under the EU’s Corporate Sustainability Reporting Directive (CSRD), companies are increasingly expected to disclose exactly these kinds of impacts and dependencies (EFRAG, 2024). Sports nutrition brands that ignore this two-way exposure are on borrowed time.

The “Design to Fail” Business Model

The current model is to sell-and-forget. Brands take high margins on the fuel and knowingly push the cost of the wrapper onto local councils and nature itself. The packaging design, at best, assumes that an exhausted runner, sticky-handed, oxygen-deprived, and kilometres from the nearest bin, will somehow hold onto multiple torn empty wrappers until they find one. That is not a realistic assumption. It is a product designed to fail.

The EU’s incoming Packaging and Packaging Waste Regulation (PPWR) turns this into a direct financial liability (European Commission, 2022). The PPWR introduces recyclability requirements, minimum recycled content thresholds, and Extended Producer Responsibility (EPR) obligations rooted in the Polluter Pays principle. Brands still selling non-recyclable laminate packaging will face rising EPR levies, potential market restrictions, and inevitable reputational damage across the single market. The only question left is whether companies treat incoming regulation as a grudging cost or as impetus to improve their entire product.

“If You Sell the Fuel, Own the Wrapper”

A Nature Positive Roadmap

Nature Positive is not a slogan. The Nature Positive Initiative (2024) defines it as an ambitious goal referring to measurable outcomes that contribute to halting and reversing nature loss. In terms of sports nutrition, that means moving up the Mitigation Hierarchy. Instead of limiting damage at the end, we avoid the impact entirely through redesign, then actively restore the ecosystems the product touches along the way. The principle I propose is simple: if you sell the fuel, own the wrapper.

On the packaging side, viable alternatives already exist through emerging nature-based enterprises (NBEs). Notpla, a London-based startup, produces seaweed-based packaging that dissolves harmlessly in soil and water, captures and stores carbon in its structure during growth, and requires no arable land or freshwater to produce (Notpla, 2024). By addressing both climate change and biodiversity loss simultaneously, it offers a scalable solution to the polycrisis we face. They have already trialled it at the London Marathon. Picture a gel wrapper that, if dropped by a wrecked runner at mile twenty, breaks down into organic matter within weeks. The downstream biodiversity threat disappears.

On the ingredient side, brands can shift their maltodextrin sourcing towards regenerative agriculture systems that rebuild soil health, increase water retention, and restore microbial diversity (Rodale Institute, 2020). This turns the upstream crisis on its head: a nature-depleting input becomes a nature-restoring one. Major food companies are already investing in regenerative sourcing programmes. The sports nutrition sector has no excuse not to follow.

Runners care about the outdoors. They rely on the cultural ecosystem services, the recreation, amenity, and well-being values, provided by places like the Phoenix Park and the Grand Canal. A brand that delivers  the first genuinely Nature Positive gel, compostable wrapper, regeneratively sourced fuel, does not just avoid a compliance headache. It earns lasting loyalty from a community that can spot greenwashing a mile off. Research consistently shows endurance athletes are willing to pay a premium for sustainably packaged products (Trivium Packaging, 2023). An extra fifty cents per gel to protect the route you love running is not a hard sell.

Fuel the Runner, Not the Route

The sports nutrition industry has a choice ahead of it. One path leads to rising EPR fees, regulatory scrambling, and more silver gel wrappers piling up in Ireland’s hedgerows. The other leads to material innovation, restored supply chains, and brand storytelling that stands out more than any ad campaign.

Event organisers can help force this change. The Dublin Marathon and other mass-participation races should mandate compostable packaging for all sponsored nutrition products by 2028. If your brand wants endorsement, its wrapper should not end up in the Grand Canal.

The finish line is not the end of a product’s lifecycle. It is where accountability starts. If you fuel the runner sustainably, runners will buy the fuel.

References:
EFRAG (2024) EFRAG IG 1: Materiality Assessment Implementation Guidance. Brussels: European Financial Reporting Advisory Group.
Ellen MacArthur Foundation (2016) The New Plastics Economy: Rethinking the Future of Plastics. World Economic Forum.
European Commission (2022) Proposal for a Regulation on Packaging and Packaging Waste, COM(2022) 677 final. Brussels.
Nature Positive Initiative (2024) What does Nature Positive mean? Available at: https://www.naturepositive.org/ (Accessed: March 2026).
Notpla (2024) ‘Our Technology.’ Available at: https://www.notpla.com/technology (Accessed: March 2026).
Power, G., Gräfe, M. and Klauber, C. (2011) ‘Bauxite residue issues: I. Current management, disposal and storage practices.’
Hydrometallurgy, 108(1–2), pp. 33–45.
Rodale Institute (2020) Regenerative Organic Agriculture and Climate Change: A Down-to-Earth Solution. Kutztown, PA: Rodale Institute.
Tilman, D., Cassman, K.G., Matson, P.A., Naylor, R. and Polasky, S. (2002) ‘Agricultural sustainability and intensive production practices.’ Nature, 418(6898), pp. 671–677.
Trivium Packaging (2023) 2023 Buying Green Report. Amsterdam: Trivium Packaging. Available at: https://buyinggreen.triviumpackaging.com (Accessed: March 2026).
UNEP (2021) From Pollution to Solution: A Global Assessment of Marine Litter and Plastic Pollution. Nairobi: United Nations Environment Programme

BFBI Business Programme Lead Dr Catherine Farrell CIEEM, Assistant Professor in Business and Nature at Trinity College Dublin, writes on emerging nature-related disclosure requirements and how stakeholder engagement is a key process step in building collective understanding for business and nature, as workshopped with businesses in our Nature Strategy Accelerator Programme, delivered in collaboration with the Deloitte WorldClimate team.

“It was a beautiful autumn day when our group met in the Deloitte offices in Dublin’s city centre for the last of our three Action Track workshops that focused on the assess phase of the ACT-D framework. In our first workshop, our keen focus was on building an understanding of our value chain – what we do, where – and how that impacts on nature and, importantly, how much we depend on nature.

Too often businesses are experiencing chinks in the flow of essential components of their supply chains due to a fault in a lengthy global chain, with many of those faults related to climate and biodiversity related risks. If we understand these aspects, we can begin to address ways (opportunities) to mitigate those risks.

The next step is to take a metaphorical LEAP (literally: Locate, Evaluate and Assess our impacts, dependencies, risks and opportunities, and then Prepare to report) and draw a map whereby we can begin a deeper dive and evaluate and assess those dependencies, risks and impacts.

But as we draw that map, we must take time to draw out what stakeholders matter, where, and why. Thanks to the Deloitte team for outlining key stages in a stakeholder engagement and communications plan. Stakeholder engagement isn’t just an option – it’s fundamental to being part of a global community, expressed through global and local links in our value chain.

Woman speaks at large screenshowing text in blue boxes and small icons

Under the Corporate Sustainability Reporting Directive (CSRD), Taskforce on Nature-related Financial Disclosure (TNFD) and other guidance such as the Global Reporting Initiative (GRI) and ACT-D, (Assess/Commit/Transform/Disclose), stakeholder engagement is essential for a thorough Double Materiality Assessment process, and critical to any business’ local and global reputation. We were fortunate to have Janice Leonard of SAP Landscapes, above, a business in the next track up, Strategy, present her own journey through DMA and stakeholder engagement, bringing a real-world / learning-by-doing perspective. The SAP Landscapes journey is inspiring, and we all benefited from Janice’s insights, which included the need for steady dedication and the benefits of drawing on the Business for Biodiversity Ireland community within the Nature Strategy Accelerator Programme.

While there is a steep learning curve for many businesses in building awareness and understanding in relation to biodiversity and ecosystems, and the role business is poised to play in driving Nature Positive ambition, Business for Biodiversity Ireland is a reliable support to help businesses of every size and sector work through inter-connections and complexities.

Thanks to all our Action Track businesses for their generosity in sharing their own journeys and we look forward to working with you on the Strategic next phase. Thanks to SAP Landscapes, CIÉ, CIÉ Tours, Cloud Assist, Dublin Airport Authority, FuturEnergy Ireland, Irish Rail, Irish Trees, Scott Cawley Ltd, Shannon Airport, Trinity College Dublin and Watermark.

Resistance is growing from the business community and civil society on EU plans to roll back recently introduced laws on corporate sustainability reporting intended to help halt and reverse the degradation of nature, amid lobbying by opposing political forces, with fingers now pointing at US involvement.

As the European Union heads into the final phase of negotiations on the Omnibus Package, it has confirmed that plans to scale back core elements are part of an upcoming trade agreement with the United States. Business For Nature reports that the new EU-U.S. tariff statement pledged that European Sustainability Reporting Standards (ESRS) such as the Corporate Sustainability Reporting Directive (CSRD), as well as the Corporate Sustainability Due Diligence Directive (CSDDD) and the EU Deforestation Regulation (EUDR) will be adjusted so they “do not pose undue restrictions on transatlantic trade”.

However, over 400 businesses, investors and organisations have warned that weakening CSRD and CSDDD risks undermining competitiveness and long-term growth. Signatories, including the Corporate Leaders Group and Eurosif consider that regulatory simplification can be achieved without drastically compromising on the substance of sustainability rules. Read their recommendations, including advice to retain a double materiality approach HERE.

The amended European Financial Reporting Advisory Group (EFRAG) draft of the ESRS is currently up for public consultation until September 29, 2025 and stakeholders – including sustainability experts, investors and national authorities – are invited to share their views. EFRAG will also organise outreach events throughout September and October to gather further feedback ahead of its final technical advice to the European Commission, due by November 30, 2025. Read the draft and amendments here and submit your thoughts via survey.

Meanwhile the European Commission is wrapping up its Call For Evidence feedback period on the matter on September 10. For those with less time or in-depth technical knowledge to review the documents who wish to express their concerns to the EC, the #HandsOfNature Campaign led by environmental groups including the European Environmental Bureau, WWF and BirdLife Europe, and in Ireland, the Irish Environmental Pillar/Irish Environmental Network and Irish Wildlife Trust have a campaign to enable concerned citizens to have their say, including an online tool with sample text you can add to or adjust to state your thoughts on keeping the regulations robust.

BFBI Business Programme Lead Dr Catherine Farrell CIEEM, Trinity College Dublin, writes on the process steps around a Double Materiality Assessment to help guide your nature strategy, the subject of our recent Action Track workshop.

As the birds have started to sing for us every morning again (what a joy!), it’s the right time for our businesses to spring into action. And so, inspired by the stretch in the days, on March 11th the team at Business for Biodiversity Ireland, with help from our friends at Deloitte, launched the first of our three Action Track workshops scheduled for 2025 in Dublin.

Our workshop focused on the key elements of what a Double Materiality Assessment (DMA) is (and isn’t), and why it makes perfect business sense for every organisation to conduct one. Business for Nature has outlined how we can do this through a multi-step, iterative process under the Assess phase of their ACT-D framework

Reporting frameworks and sectoral guidance: With heads spinning after the recent EU Omnibus proposal announcement, we all agreed at the workshop, that even though reporting obligation ‘goal posts and timeframes may change, it’s in everyone’s best interest to understand a) their impacts on nature, and b) nature’s impacts / on our businesses (which in turn, relate to dependencies, but also risks and opportunities). This ‘inward and outward looking’ approach is what puts the ‘double’ in DMA. Thankfully, there is a growing repository of sectoral guidance and case studies, as well as freely available online tools like ENCORE and IBAT that assist businesses to begin the journey of ‘Assess’ with relative ease. In the workshop we talked through CSRD, TNFD, SBTN and GRI, but we reminded ourselves, at the heart of all these frameworks is rolling up the sleeves to understand our business operations, our extended value chains and who we interact with along the way.

Value chains and stakeholders: In a world of global value chains – where does a value chain start and end? We spent a fruitful and insightful couple of hours working through value chains relevant to our businesses present: it was great to see the emerging pictures on flipcharts, and participate in conversations that really helped our collective understanding to grow – particularly in relation to where our greatest impacts and dependencies may lie. This is a critical part of the DMA process.

Our next two Action Track workshops will build on this work, working through tools like the TNFD LEAP (Locate, Evaluate, Assess and Prepare), to help bring our understanding to light.

A big thank you to our supporters and speakers from Deloitte, Arianna Bunello and Sofia Langs, with  support from Aoife Connaughton and Caitlyn Flanagan, BFBI Head of Operations Iseult Sheehy and Head of Research Dr Emer Ní Dhúill, Sarah Kelly, of National Biodiversity Data Centre, Eadaoin Boyle Tobin, Business in The Community Ireland.

Thanks to our Action Track businesses – Emily Riondato, Kate Farrell and Caoimhe Donnelly, of Coras Iompair Éireann; Ken Lyons, CIE Tours; Aine Kirrane, Dublin Airport Authority, Liam O’Neill (and Sean online) of Cloud Assist; Aoife McGovern, Future Energy Ireland; Ailish Duggan, Irish Rail; Bob Hamilton, Irish Trees; David Finane, KMK; Aebhín Cawley, Scott CawleyLtd; Arek Gdulinski, Shannon Airport and David Lawlor, Watermark.

Sign up for Discovery Track or level up to Action Track in the Members Home to gain access to future workshops.

2024 was an eventful year for those of us working in advancing nature action at both national and global level.

The much-contested  EU Nature Restoration Law  was brought in – and the Green Party, which was in Government at the time, with Ireland’s first Minister for Nature Malcolm Noonan, were instrumental in getting it over the line. However, there remains political pushback at home and abroad as we enter 2025 and environmental concerns slip further down the agenda in the face of the cost-of-living crisis, political turmoil and global conflict. 

Extreme weather incidents are putting these concerns squarely back on the agenda for the private sector as we start 2025, particularly in the area of insurance and financial investments. Fears are being raised in the food sector due to the climate and nature crises, and we will likely see tourism, hospitality and retail affected globally, as well as a rise in public health concerns. The latest  WEF Global Risks Report  rates several environment-related risks in prominent positions in their Top 10 for a 10-year analysis, with the risk from biodiversity loss and ecosystem collapse ranked in second place, after extreme weather events. The short-term (2 years) risk analysis ranks extreme weather events in second place, however, the risk from biodiversity loss and ecosystem collapse is not as prominent yet on the short-term list of worries for polled business leaders. This is surprising given that it is now widely understood that biodiverse ecosystems create resilient landscapes and enhance carbon sequestration, lessening the effects of climate change such as extreme weather events. (The Economics of Biodiversity aka the Dasgupta Review, for the UK Treasury in 2021, warns we must start accounting for nature’s contributions in national accounts to inform decision-making for future resilience).

We welcome the announcement of a new Minister of State for Nature, Heritage & Biodiversity, Christopher O’Sullivan TD, at the Department of Housing, Local Government and Heritage, and hope concrete and swift action on nature loss and degradation will be set in motion once Ireland’s National Restoration Plan, being developed by the  National Parks & Wildlife Service  in conjunction with relevant stakeholders, is finalised. The new  Programme for Government  pledges to keep the Infrastructure, Nature & Climate Fund, instigated by the previous government, with plans to pursue more funding at EU level, and delivery of Ireland’s  National Biodiversity Action Plan 2023-2030,  which sees a whole-of-government, whole-of-society approach. We look forward to continuing to work with a number of government departments in developing and implementing actions to support businesses in achieving this. 

Despite an uneven progress following successive global summits on climate and nature, BFBI agrees with recent commentary by Business for Nature’s CEO Eva Zabey that interest levels and discussions on biodiversity within the business and policy world are certainly “maturing and multiplying”. “Tackling complex issues such as biodiversity loss and its interconnections with climate and social equity takes time, where global discussions remain key, even if they don’t always result in the urgent progress we are collectively striving for.

“This requires all of us to act with both urgency and perseverance. We take heart in the progress made over the past 12 months by our fantastic community and partners, and by the growing number of businesses and policymakers committed to building a nature-positive future for all by 2030.”

Zabey lists some key highlights from the past year, including the introduction of the EU’s Corporate Sustainability Reporting Directive (CSRD) in effect for 11,000 companies in 2025.

Over 500 companies have committed to disclosing their nature-related issues to investors using the TNFD recommendations – a 57% increase since the beginning of the year, 30 companies have published dedicated nature strategies through It’s Now for Nature and first mover companies publicly adopted science-based targets for nature. These are encouraging signals of change.”

However voluntary action by businesses is far from the norm, and many organisations still do not understand their impacts and dependencies on nature. There is confusion among Irish companies on the scope of the new reporting rules, with a number of our larger legal firms seeking clarification from the Government on how the legislation is to be applied in Ireland.

It is essential that the new Government and the business sector show leadership in making this the year to accelerate our transition to Nature Positive rather than risk playing catch-up – if you are new to it all, start here on our free Discovery Track with access to the evolving guidance and resources coming your way in 2025, including our free webinar series.

Those keen to make the commitment to put prior learning and resources into action now can join our Nature Strategy Accelerator Programme’s paid Action Track for tailored help to get your reporting on track, and be ready to make real positive impact for your business and for nature. We’ll help you to advance to our Strategy Track and Evolution Track, through our Roadmap to Nature Positive (in alignment with the global Now for Nature Strategy), to maintain a steady path to long-term sustainability.

Get on track HERE.

 

Business For Biodiversity Ireland (BFBI) has released our Nature Strategy Accelerator Programme to guide Irish businesses to develop a strong, credible strategy to identify their impacts and dependencies on nature and ensure compliance with the new EU legislation regarding environmental reporting.  

The Nature Strategy Accelerator Programme has been developed following a series of insightful sessions with the European Business and Biodiversity Platform and other national platforms, and reflects a model of best practice in line with current international developments, tailored to the Irish context and aligned with grants available in Ireland through Local Enterprise Offices, Enterprise Ireland, Údarás or the IDA.

All new and existing Business For Biodiversity Ireland members can avail of the introductory Discovery Track for free, with access to guidance and webinars to bring them up to speed on their relationship to biodiversity.

The Discovery Track offers:

  • Three biodiversity-focused training webinars throughout the year
  • Guidance on how to start your nature-positive journey
  • Curated videos and online training resources to help you on your way
  • A quarterly newsletter with details of upcoming biodiversity-focused events
  • Updates on EU regulations such as the Corporate Sustainability Reporting Directive (CSRD).

BFBI Chair of the Board Susan Rossney, Sustainability Advocacy Manager of Chartered Accountants Ireland, urged all businesses to join up and start their journey, as time is of the essence to ensure a sustainable ‘Nature Positive’ future for the Irish economy. She said: “A whole-of-society approach is needed to deliver a nature-positive economy – an economy that results in increasing levels of nature over time and that no longer incentivises the overexploitation of nature. Nature provides a third of the climate mitigation potential we need to achieve our climate goals, so delivering a nature-positive economy is imperative for reaching our climate targets.

“A nature-positive economy is similarly vital to our long-term economic resilience: 55% of the world’s GDP is moderately or highly dependent on nature. Despite this, many businesses are unaware of their dependence on and impact on biodiversity, a risk made all the greater now that larger companies are legally bound to disclose information on their environmental impact via the CSRD.

“As the pivotal UN Biodiversity Conference ‘COP16’ takes place to address the global biodiversity crisis, and as the World Wildlife Foundation’s Living Planet Report tells us of 73% average decline in wildlife populations over the last 50 years, it is a fitting time for Business for Biodiversity Ireland to launch our Nature Strategy Accelerator Programme. With a mandate under the 4th National Biodiversity Action Plan, BFBI has built a powerful profile advocating for nature-positive business. This programme will empower businesses to deliver positive outcomes for people, planet and nature.”

Explore the benefits of our Discovery Track: How it all works 

All members are invited to join the Discovery Track series of webinars.

Register now to join the next webinar on March 26, 2025, 9.30.

Companies are taking a variety of approaches to conducting materiality assessments for their annual reporting in terms of biodiversity and other #ESG topics – but how to be sure your approach is on the right track?

As we compare and contrast assessment approaches in the course of our research, we have noticed that some reports come across as somewhat lacking in focus and substance, while stakeholder engagement appears to vary from cursory at best, brief surveys targeted at a small cohort, to in-depth discussions over a large cross-section of interested groups and individuals. Some reports seem weighted toward the concerns of shareholders rather than matters that impact society at large, while some obfuscate negative environmental and social impacts via their report’s presentation style, veering dangerously close to greenwashing.  

Fortunately, a number of methods and frameworks have emerged to facilitate Environmental, Social and Governance reporting and, in terms of standardisation, the Global Reporting Initiative (GRI) framework provides a solid, comprehensive approach for businesses reporting on their ESG performance. 

The European Union’s Corporate Sustainability Reporting Directive (CSRD) requires the use of double materiality in sustainability disclosures, which acknowledges that materiality – what matters most to a business – can no longer be viewed from a purely financial perspective. Traditionally, a material issue is one that could significantly influence the financial decisions of investors. However, this approach has expanded in recent years, as stakeholders, including regulators and consumers, have increasingly called for businesses to consider their broader societal and environmental impacts. 

A double materiality assessment takes into account two perspectives: 

  1. Financial Materiality: How ESG issues could impact a company’s financial performance. For example, stricter environmental regulations could lead to increased compliance costs, or climate-related risks could lead to asset devaluation. 
  1. Impact Materiality: The external impacts that a company’s operations, products, or services have on society and the environment. For instance, a company’s carbon emissions, deforestation, or supply chain labour practices might negatively affect local communities or contribute to global environmental challenges. 

Both aspects are interconnected and the double materiality approach offers a holistic understanding of a company’s risks and opportunities, enabling a businesses to better anticipate future trends, such as shifts in consumer preferences toward sustainable products or the financial implications of climate change, and nature degradation, as a result of business impacts. 

In particular, GRI 3: Material Topics provides guidance on how businesses can identify, assess, and prioritise material topics for reporting. The approach is quite stakeholder-focused and involves the following steps: 

Step 1: Understand the organisation’s context  

GRI 3 encourages businesses to think broadly about potential topics, not just those that have an immediate or obvious financial impact, but those that reflect significant external societal or environmental concerns. Consider: 

  • Business activities 
  • Business relationships 
  • Sustainability context 
  • Stakeholders 

Thorough and ongoing stakeholder engagement is key to identifying material topics, alongside a review of the latest industry standards, regulatory developments and examining reports by other organisations. Contact as many of your stakeholders as you can and examine their concerns – employees, customers, local communities, NGOs and regulatory bodies.  

For this exercise to be effective, you must engage at-risk or vulnerable groups and consider impacts that result in collective harm (e.g. GHG emissions), which require consultation with experts in this field. Identify the full range of ESG topics that could be relevant to the business – these go beyond climate change and biodiversity to labour and human rights, community relations and governance.  

Step 2: Identify actual and potential impacts 

Financial materiality: Evaluate how the issues raised by stakeholders might impact the company’s financial performance. Risks related to climate change, such as increased operational costs due to carbon pricing, or physical damage to assets from extreme weather events, could have material financial consequences for a business.  

Impact materiality: how do your company’s operations and activities affect society and the environment? For example, a company’s operations may generate waste or pollution, harming local ecosystems and communities. These impacts may not affect the company’s bottom line in the shortterm but are still relevant to stakeholders and fall under the company’s overall environmental and social responsibility. 

Where data is not immediately available or clear, conduct a scoping exercise to identify areas where negative impacts are likely to happen, considering impacts commonly associated with your sector. Identify also any positive impacts – those that contribute to nature restoration, conservation, protection or regeneration. 

Step 3: Assess the significance of the impacts 

The significance of the impact will be specific to each organisation and influenced by the sectors in which it operates. Consultation with experts is essential here. An actual negative impact’s significance is determined by its severity. Significance of a potential impact is determined by both the severity and likelihood of the impact, a.k.a. risk.  

Severity is determined by: 

  • Scale – how grave the impact is, including from a compliance perspective 
  • Scope – how widespread the impact is 
  • Irremediable character – how difficult it is to fix. 

For positive impacts, also look at scale and scope. How beneficial is the impact? How widespread is it or could it be?

Step 4: Prioritise Material Topics

After assessing both the financial and impact materiality, businesses must prioritise the topics that are most significant. This involves balancing the interests of shareholders (who may be primarily concerned with financial materiality) and stakeholders (who may be more concerned with societal and environmental impacts).

Step 5: Review and Disclose

The results of the double materiality assessment should be reviewed by the senior management before disclosure. Material topics should be shared in the company’s annual report. Under GRI standards, the company must explain how it conducted its materiality assessment and provide clear information on the financial and societal impacts of its operations as well as explaining why some standard topics are not considered material.

In each reporting period, review material topics from previous assessments and account for changes in the impacts, and changes due to organisational activities or business relationships. Document the approach taken for each assessment, including the methods of stakeholder engagement, evaluation, visualisation and reporting methods (and actions taken as a result). These elements should all be monitored, reviewed and updated regularly, as material issues can evolve over time. New regulations, shifting stakeholder expectations or emerging ESG risks will entail updating your materiality assessment considerations and methods in future. 

This idea is known as Dynamic Materiality​: “As companies more rapidly change their business models, what is material to such companies will be changing in stride. ​Just as the new material topics will emerge for companies as the company evolves, some sustainability issues that were previously material financially to companies will no longer be”. (​Kuh et al, 2020). 

By conducting a double materiality assessment now, on a voluntary basis, companies who do not yet fall under regulations can be ready for when regulation expands to encompass businesses of every scale and sector, and help secure a place in the supply and value chains of larger organisations who are currently mandated to report.

Transparent disclosure, as well as taking concrete action on biodiversity impacts and other ESG material topics, will enhance your business reputation with consumers and peers, while mitigating risks, boosting long-term resilience and contributing to a more sustainable future. 

The Business For Biodiversity Ireland platform offers guidance to all Irish businesses to build internal capacity to understand your material topics – sign up today.

Illustration: Figure 1(a), EFRAG IG1 Implementation Guidance on Double Materiality, May 2024. The European Sustainability Reporting Standards has published a materiality assessment document, P10 deals with double materiality, with a section on FAQs via the EFRAG site.

Visit the Global Reporting Initiative site for more information: https://www.globalreporting.org/how-to-use-the-gri-standards/gri-standards-english-language/ 

 

 

The European Union Corporate Sustainability Reporting Directive (CSRD) has been signed into law by Minister for Enterprise, Trade and Employment Peter Burke TD, coming into effect for Ireland on July 6, 2024.

The CSRD requires that all large companies and all listed companies (except listed micro-enterprises) report sustainability information in accordance with European Sustainability Reporting Standards in their annual directors’ report.

The Directive is the EU’s response to the global reframing of company reporting to include environmental, social and governance matters arising from the European Green Deal and the EU Action Plan for Financing Sustainable Growth. It harmonises the EU rules for sustainability reporting by companies, to put this on the same footing as financial reporting, ensuring investors and other stakeholders have access to information to assess investment risks arising from climate change and other sustainability issues.

Minister Burke said:

“These Regulations provide a helpful structure to companies for preparing sustainability reporting in a clear and consistent way, that gives the relevant information to investors, consumers, and other stakeholders”.

Minister of State for Trade Promotion, Digital and Company Regulation, Dara Calleary TD, said:

“The Regulations play an important role in addressing risks posed by climate change to financial systems, and in channelling future investments and consumption towards companies that have a clear sustainability focus. The Regulations will be highly useful to the companies, and to investors and consumers alike, and bring predictability for all stakeholders in this valuable aspect of Ireland’s active response to the climate agenda at national and European level.”

The new rules will be phased in for financial years from 2024-2028. The directors’ report must be produced in single electronic format, subject to a limited assurance or audit, ahead of sustainability assurance standards by the European Commission due by 2028.

Read more on the Department of Enterprise, Trade and Employment website.

Want a deeper understanding of your business’ impacts and dependencies on nature? Wondering where to start with nature-related disclosures? Lost in a fog of TNFD / GRI / EFRAG / CRSD alphabet soup? Keen to develop a roadmap to Nature Positive for your business but don’t know where to start?

Business For Biodiversity Ireland is participating in the development of a new module with Trinity College Dublin’s Dr Catherine Farrell titled ‘The Business of Nature Positive’ and are inviting businesses who would be interested and willing to:

  • participate in Trinity Business School undergraduate / student-led research to trial the application of nature-related reporting frameworks and tools, and
  • explore ways to develop a roadmap to Nature Positive.

Businesses rely on many aspects of nature and climate to carry out day-to-day business. Recognising these dependencies, as well as the impacts of business on nature, new reporting requirements under the new EU Corporate Social and Responsibility Directive (CSRD), will fast become a reality for Irish businesses.

In response to the need to build capacity for present and future business needs, Trinity Business School is developing this module to be delivered to 4th year undergraduates in the 2024/2025 academic year and facilitate learning in how to apply and communicate relevant nature-related reporting and disclosure frameworks for businesses, helping to identify steps to nature positive and through these processes assist businesses to integrate nature into decision making.

We expect the input from the business to be by a nominated staff member / sustainability business champion working directly with the TCD students. We expect the work to involve at minimum approximately 8-10 hours in total over a period of 4 months (largely between December and mid-April 2025 – download a breakdown of time and commitment expected via the PDF at the end of the article.)

As a participating business, through engagement in this process, you will have opportunities to:

  • Benefit by receiving bespoke support in kickstarting scoping for a materiality assessment for your business
  • Assistance in taking the first steps in identifying data available / potential data needs for nature related reporting
  • Develop a deeper understanding of your business’ impacts and dependencies on nature,
  • Begin the thought process as to how to develop a roadmap for nature positive for your
    business, and
  • Trial approaches / identify opportunities for communicating nature related issues to
    stakeholders (internal and external).

Once we have an overview of interested businesses (small or large, of any sector), the module coordinator will follow up with a questionnaire to determine your suitability in terms of logistics and availability.

NB: Please submit an expression of interest form HERE.

This call for Expressions of Interest will close in early July.

 

Our Roadmap to Nature Positive will help you set the right foundations for reporting your nature-related impacts and dependencies under new regulations – it’s also useful if you are considering reporting these voluntarily.

Regardless of current legal obligations, there is a responsibility for all organisations, no matter their size, to understand their impacts and dependencies on nature and take measures to halt and reverse these. Business as usual is not an option, given the decline in global biodiversity and the interlinked climate crisis, the effects of which are already being felt on human health and society, as well as economically. 

First off, you need to know your obligations on nature disclosures. Within the Roadmap – available to BFBI members when you sign up and log in to the Members Area of our site – we look at reporting for different business types and scales. We also outline the relationship between EU Taxonomy and the Corporate Sustainability Reporting Directive (CSRD).

Goal 3 provides information on your legal obligations, in particular if your business falls under the scope of CSRD; and if/when your business needs to start reporting. There is a different timeline for companies of various scales, starting in 2024 for certain companies. For businesses that do not currently fall under the scope of CSRD, we outline how it may relate to your business down the line.

Considering the value chain

Many businesses that are not within the scope of CSRD are still part of the value chain (aka Scope 3) of larger organisations. These larger organisations may well request Environmental, Social and Governance (ESG) information from their value chain members – and organisations who are not ready for this may find that they lose out when it comes to larger organisations making supplier choices.

Once you know your obligations under the new regulations, the next step will be to explore the reporting standards to find the best fit for your business. Members can check out our Guidance A3.2 on Standardising Reports. Standardised reporting helps organisations increase transparency and communicate their sustainability initiatives.

We’ll give you an overview of the reporting standards that are internationally recognised and aligned with each other with explainers on how all the emerging different policies, frameworks and standards are linked.

Already feeling the overwhelm? Take a breath and have a look at our easy-to-read member guidance documents to give yourself a basic understanding. You’re not expected to be an expert right away and the Platform is here to help. If you have questions, all members are invited to our quarterly Member’s Forum, and you can upload your questions or comments to the online dashboard so that we can discuss them at our meet-ups.

Register here: https://businessforbiodiversity.ie/register-all/