Tag Archive for: reporting

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/

Materiality is the quality of being relevant or significant, and in terms of business and finance, materiality applies to all items that must be recorded or reported in detail in a business’s financial statements as reasonably likely to impact investors’ decision-making. 

Double materiality: For corporate sustainability reporting, the concept of double materiality applies – it goes beyond that which affects the company and its investors, extending to information on how the firm is impacting society and the environment. 

The EU Corporate Sustainability Reporting Directive (CSRD) mandates a double materiality assessment for around 50,000 reporting companies from 2024 onwards. 

The European Sustainability Reporting Standards (ESRS) explains that a double materiality assessment takes two perspectives, sometimes referred to as an ‘outside in’ / ‘inside out’ approach: 

              (1) an impact perspective “when it pertains to the [entity’s] material actual or potential, positive or negative impacts on people or the environment over the short-, medium- and long-term”; and 

              (2) a financial perspective “if it triggers or could reasonably be expected to trigger material financial effects on the [entity].” 

A double materiality assessment must cover both a business’ own operations as well as upstream and downstream value chain. It must consider the topics and subtopics covered in the 10 ESRS topical standards. These include climate change, pollution, water, biodiversity, circular economy and topics relating to governance and the workforce. 

Detailed reporting on each is required only if the company decides, following a double materiality assessment involving all stakeholders, that it is ‘material’ or relevant under the reporting rules. Where a company determines a topic to not be material, it must explain its rationale in detail. It is still necessary to have a long-term strategy in place to address your organisation’s future impacts and dependencies on nature (and future risks resulting from) biodiversity loss and climate change. 

Read more: https://www.cisl.cam.ac.uk/news/blog/double-materiality-corporate-sustainability-reporting-encompass-societal-and-environmental-impacts 

https://www.charteredaccountants.ie/Accountancy-Ireland/Articles2/Technical/Latest-News/Article-item/the-corporate-sustainability-reporting-directive-getting-to-grips-with-double-materiality 

 

 

 

 

Business for Biodiversity Ireland offers our members an easy-to-follow Roadmap to Nature Positive –  the Assess Phase covers getting started by making a commitment – and another key step is working out where your business stands within a sectoral and organisational context in order to create a solid biodiversity strategy. To do this, you need to know how to ask the right questions.

BFBI members can access our Business Template which will help map out your business model in terms of inputs, activities and outputs. It has been compiled with our community of practice businesses and cross-referenced with prevailing methodology and standards, such as the Global Reporting Initiative and the TNFD LEAP approach.

The Global Reporting Initiative is an independent, international organisation that provides a global common language to communicate environmental impacts with a suite of standards to help businesses report on various aspects of sustainability across regulatory landscapes.

The BFBI Business Template helps unpack your business model with a series of guiding questions, for example:

– What sector are you active within?
– What type of activities are carried out by your business?
– Where are your activities based geographically?

The template goes on to cover your raw materials, your procurement, your land footprint, your water footprint – with recommended tools to calculate these – as well as, you guessed it, your carbon footprint.

Creating a value-chain map

Then you’ll look through your business and value-chain relationships, with more guiding questions, giving you an opportunity to create a value-chain map. Every business has a value chain – you need to also consider what types of activities are undertaken by those with which you have business relationships?

Think about your sector and theirs – what are the nature challenges at local, regional, and global levels related both to your sector and to that of organisations in your value chain: e.g. deforestation, climate change, water stress, pollution, land use, invasive species, natural resource use?

What are the responsibilities with regards to compliance and regulation? These steps on the Roadmap will allow you to create high-level overviews to identify topics material to your business when it comes to new and existing reporting regulations.

This process must be revisited regularly and in consultation with stakeholders and industry experts. The policy landscape is evolving, reflecting the urgency to take action to mitigate risk from the connected biodiversity loss and climate change crises. It is therefore important to be aware of any policy changes that relate to your business, sector and value chain.

The BFBI platform will be on hand with updates – become a member here to access our full Roadmap to Nature Positive.

Next up: Nature Disclosures – knowing your reporting obligations & choosing the right framework