Companies or groups with less than 750 employees do not have to report on these ESRS standards for the first 2 years of preparation of their sustainability statement under CSRD:
➡ E4 Biodiversity and ecosystems
➡ S1 Own workforce
➡ S2 Workers in value chain
➡ S3 Affected communities
➡ S4 Consumers and end-users
But does that mean that it’s ok to forget about these standards for 2 years?
The answer is no.
Especially if the company has identified actual or potential adverse impacts related to the topics covered by these five standards.
Under ESRS 2 (17), the company still needs to report the list of matters covered by these standards in AR 16 ESRS 1 Appendix A, that have been assessed to be material as a result of the company’s materiality assessment.
For each material matter, the company also needs to report a brief description of:
⭕ how the company’s business model and strategy take account of the impacts of the company related to those matters;
⭕ any time-bound targets the company has set related to the matters in question;
⭕ the progress it has made towards achieving those targets;
⭕ whether its targets related to biodiversity and ecosystems are based on conclusive scientific evidence;
⭕ the company’s policies in relation to the matters in question;
⭕ the actions the company has taken to identify, monitor, prevent, mitigate, remediate or bring an end to actual or potential adverse impacts related to the matters in question;
⭕ the result of such actions;
⭕ the metrics relevant to the matters in question.
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