A balance between the various ecosystems is essential for human survival. If this exists, forests and oceans ensure the reduction of carbon, bacteria/organic substances healthy soil for the growth of plants & pollinators the reproduction of these and thus ensuring our food production. However, to guarantee this, 1 million animal and plant species (threatened with extinction) must be rehabilitated and protected alongside 7 million other species. Otherwise, ecosystems will be destroyed and, as a result, global warming and the occurrence of natural disasters will increase. This shows the immense influence that we as companies have upon biodiversity globally and that together we can drive to make a valuable change.
With the introduction of the EU Taxonomy Regulation, companies are now required to adhere to stringent guidelines that enforce transparency in their environmental impacts, particularly in relation to biodiversity. This blog post delves into the key components of the EU’s legislative framework, including the Taxonomy Regulation, Corporate Sustainability Reporting Directive (CSRD), and the European Sustainability Reporting Standards (ESRS), which collectively aim to enhance the sustainability reporting and accountability of businesses operating within the EU.
The EU’s Taxonomy Regulation, which includes specific goals for biodiversity and ecosystem protection, mandates that all companies operating within the EU assess and publicly disclose their impacts on ecosystems. This disclosure is part of the CSRD and ESRS. Under these regulations, and particularly in relation to the protection of biodiversity and ecosystems, companies must disclose their transition plan, their strategy to avoid, minimize, restore and compensate for negative impacts on biodiversity, as well as the targets, impact metrics (e.g. population sizes, extinction risks & ecosystem conditions) and potential financial impacts.
Climcycle offers a user-friendly and intuitive platform that covers only the category “E4 - Biodiversity and Ecosystems” as well as the entire CSRD & ESRS. Both modules provide a wide range of results that can be calculated and disclosed in a regulatory compliant manner using a small amount of input data. This enables comprehensive risk management and strategic decision-making.
The EU's reglations are not just a compliance requirement; they represent a shift towards a sustainable business practice that considers ecological impacts as central to corporate responsibility. By understanding and integrating these requirements into their operations, companies not only contribute to the global effort of preserving biodiversity but also enhance their own resilience and sustainability in the face of environmental challenges.
