Disclosure Requirement E4-1 – Transition plan and consideration of biodiversity and ecosystems in strategy and business model

  1. The undertaking shall disclose how its biodiversity and ecosystem impacts, dependencies, risks and opportunities originate from and trigger adaptation of its strategy and business model.

  2. The objective of this Disclosure Requirement is to enable an understanding of the resilience of the undertaking’s strategy and business model in relation to biodiversity and ecosystems, and of the compatibility of the undertaking’s strategy and business model with regard to relevant local, national and global public policy targets related to biodiversity and ecosystems.

  3. The undertaking shall describe the resilience of its strategy and business model in relation to biodiversity and ecosystems. The description shall include:

    • (a) an assessment of the resilience of the current business model and strategy to biodiversity and ecosystems-related physical, transition and systemic risks;

    • (b) the scope of the resilience analysis in relation to the undertaking’s own operations and its upstream and downstream value chain and in relation to the risks considered in that analysis;

    • (c) the key assumptions made;

    • (d) the time horizons used;

    • (e) the results of the resilience analysis; and

    • (f) the involvement of stakeholders, including, where appropriate, holders of indigenous and local knowledge.

  4. If information specified in this disclosure requirement is disclosed by the undertaking as part of the information required under ESRS 2 SBM-3, the undertaking may refer to the information it has disclosed under ESRS 2 SBM-3.

  5. The undertaking may disclose its transition plan to improve and, ultimately, achieve alignment of its business model and strategy with the vision of the Kunming-Montreal Global Biodiversity Framework and its relevant goals and targets, the EU Biodiversity Strategy for 2030 (70), and with respecting planetary boundaries related to biosphere integrity and land-system change.

(70) EU Biodiversity Strategy for 2030- Bringing nature back into our lives, COM/2020/380 final.