As you probably already know, there are new nature and biodiversity regulations in town, two with an implementation date coming up soon.

Transparency is good for nature and business

Get ready for a new era in corporate transparency. With the European Sustainability Reporting Standards (ESRS) and the EU Deforestation Regulation (EUDR), businesses are facing increased pressure to demonstrate their commitment to sustainability and now have to share their impact on nature and biodiversity. This isn't just about ticking boxes; it's about demonstrably proving your commitment to a greener future.

(Image credit: Dylan Hunter, Unsplash)

ESRS-E is a comprehensive framework for reporting your business' interface with nature. Think pollution, resource use, and biodiversity factors—the whole shebang. The goal? To give yourself, investors, stakeholders, and the public a clear view of your environmental impact. One of the first steps in making decisions that are more sustainable and more biodiversity-positive, is understanding how your business depends on and impacts nature. We often don't have a comprehensive understanding about this, and the past couple of years focused too narrowly on emissions. ESRS-E, EUDR, TNFD, and other reporting frameworks are guiding us on the path towards a more holistic understanding of how companies impact and depend on the planet.

Four reasons why your company should tune in now

• Risk management: Identifying and addressing environmental risks can safeguard your operations and boost resilience.

• Competitive edge: Leading the pack in environmental reporting can set you apart from the competition and enhance your brand reputation.

• Compliance: If you're a large company, EUDR and ESRS-E reporting will be mandatory in the very near future. Get ahead of the curve and avoid last-minute scrambles—nature and biodiversity reporting is the most complex to date.

• Investor magnet: Demonstrating a strong environmental track record is a powerful way to attract investors who prioritize sustainability.

Key dates to mark on your calendar

Now: Start familiarizing yourself with the new regulations. Evaluate your current reporting practices and identify any gaps you'll need to fill. Most likely they will be concerning EUDR and  the environment portion  of the ESRS. tumblebee's software can help with exactly those reporting requirements!

For ESRS-E:

• 2025: Companies previously subject to the NFRD as well as large companies who meet two of the following criteria will be required to start reporting under ESRS-E for the 2024 financial year:

  • > 500 employees

  • ≥ 40M EUR in sales

  • ≥ 20M EUR in assets

• 2026: Companies who meet two of the following three criteria

  • 250 or more employees

  • 40M EUR in sales

  • 20M EUR in assets

• 2027: Companies who meet two of the following three criteria

  • ≥ 10 employees

  • > 700 000 EUR sales

  • > 350 000 EUR in assets

For EUDR:

• December 2024 for companies who sell the following commodities to the EU or export from the EU:

  • cacao, coffee, soy, palm oil, wood, rubber

    
    

You don't need to have the in-house satellite and GIS skills that are needed for nature & biodiversity analyses

ESRS-E is the most complex reporting to date and consists of five distinct data point categories, some of which require remote sensing technology.

1. Climate data points are mostly about GHG emissions.

2. Pollution data points are about various chemicals and other pollutants released into ecosystems.

3. Water and marine resources data points involve withdrawal and consumption, as well as the impact on water bodies your business operations have.

4. Biodiversity and ecosystems requires  an extensive list of data points, e.g., land use change, impact on protected areas, species extinction risk, invasive species, and more.

5. Resource use and circular economy is asking for the total amount of raw materials used and descriptions of any initiatives to promote reuse, repair, or remanufacturing of products, as well as efforts to design products for durability and recyclability.

Software companies like tumblebee take care of these required analyses. We are using the most up-to-date and trusted remote sensing and geospatial data sources.

In a nutshell

CSRD's ESRS-E is your compass for navigating the complex landscape of environmental reporting. It's more than a regulatory requirement; it's a chance to showcase your leadership, build trust, and drive meaningful change. So, embrace the challenge, harness the power of transparency, and let's shape a more sustainable future together.

Don't wait until it's too late. Start preparing for ESRS-E now and gain a competitive advantage in the green economy. Book a call with us to see how our software can help you on this journey.

Additional sources

Q &A on the EU's website about the adoption of ESRS
View the required ESRS data points here or in Google sheets

EUDR regulation and implementation guide