EU Biodiversity Strategy 2030

The EU’s biodiversity strategy is a central part of the European Green Deal (Green Deal), the goal of which is to turn EU to a climate neutral continent. The goal is to protect at least 30% of the EU’s land and sea areas, restore weakened ecosystems throughout the EU by 2030, plant 3 billion trees and reduce the use of pesticides and the resulting risks from using pesticides by 50%. 

What does biodiversity mean?

Biodiversity means the diversity of life on Earth, including different species, their genes and ecosystems. Wide biodiversity is important in terms of the functioning and stability of ecosystems, and its reduction threatens natural diversity and the functioning of ecosystems. 

Protecting and restoring biodiversity is important as it plays a key role in maintaining the balance of nature as well as providing people and animals with water, food and shelter. 

The deterioration of biodiversity also threatens business continuity, which is why it is important for companies to include supporting the diversity of biodiversity in their risk management and strategy. Among other things, the construction industry, agriculture and the food industry are all dependent on nature. 

Biodiversity strategy goals 

The EU member states are committed to the goals of the strategy, which aim to stop the loss of nature and accelerate the development of biodiversity. There are a total of 17 goals and they are related to either (1) the EU’s nature conservation network or (2) the EU’s restoration regulation. 

  1. An EU-wide nature conservation network (1.2 million km^2) on land and sea. The goal is to expand the current Natura 2000 protection network by protecting climate-important areas and areas with high biodiversity. 
  1. The EU’s restoration regulation, the goal of which is to oblige EU countries to protect ecosystems whose state has been found to be degraded and which have the potential to bind carbon dioxide to prevent and reduce the effects of extreme weather phenomena. 

The restoration regulation focuses strongly on the revitalization of nature in the EU member states and the aim is to set binding goals that concern e.g. forests, urban areas, degraded terrestrial and marine habitats, owls and rivers and floodplains. 

Other goals of the EU are to allocate 20 billion euros in annual funding for the protection and development of biodiversity and to create a global biodiversity framework. 

EU Nature Conservation Network

The nature conservation network has three goals: 

  1.  Expanding the protection area stipulated in the law, so that at least 30% of the EU’s land and sea areas are protected, and the ecological connections between protected areas are ensured. 
  1. At least one third of the EU’s protected areas are strictly protected, including all of the EU’s remaining primeval and old-growth forests. 
  1. Clear conservation goals and measures with which protected areas can be managed effectively. 

You can follow the progress of the goals here. 

EU Restoration Regulation

The restoration regulation being prepared by the European Commission is the first law covering the entire European region. It is a key part of the EU’s biodiversity strategy. 

The goal of the proposal is to restore ecosystems and habitats in the EU’s land and sea areas and enable the recovery of biological diversity and nature in the long term. The goal is also to promote the achievement of climate change mitigation and adaptation goals and to fulfill international commitments. 

You can read more about the restoration here. 

National Biodiversity Strategy 

The Ministry of the Environment has decided to create a new national biodiversity strategy, because the previous strategy that extended to 2020 did not stop the impoverishment of nature. The goal of the new strategy, which extends to 2030, is an ecological transition in Finland. 

The EU Commission requires the member states to make two commitments to the key objectives of the EU Biodiversity Strategy: 

  1. How the member country(s) intend to promote the EU’s common 30% conservation area goal and how the member country(s) intend to promote the EU’s common 10% strict protection goal. 
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  1. What measures will the member country(s) take to secure the protection level of the nature and bird directives and to improve it by 30 percent. 

In Finland, achieving the goals is based on voluntariness, and stakeholders are asked for comments and suggestions on national measures during 2023. Before submitting Finland’s commitments to the EU Commission, they are subject to a decision in principle by the Government. 

How does the biodiversity strategy affect business operations?

Adopting a biodiversity strategy can affect business operations through legislation and reputation management. It can require companies to take measures to protect biodiversity and improve their reputation as responsible actors. In addition, a biodiversity strategy can offer new business opportunities and help companies manage biodiversity-related risks. 

GHG Protocol – An International Standard for Measuring and Reporting Corporate Greenhouse Gas Emissions

The Greenhouse Gas Protocol, or GHG Protocol, is the most widely used international method for measuring and reporting greenhouse gas emissions. According to this method, emissions are divided into three different categories: Scope 1, Scope 2, and Scope 3. 

The classification according to the GHG Protocol reduces the risk of double counting between emission calculations and helps to understand the emission sources throughout the entire value chain of business. 

GHG Protocol and Scope 1, 2, 3

According to the GHG Protocol, emissions are classified as follows: 

  • Scope 1 includes all direct greenhouse gas emissions resulting from the company’s operations. 
  • Scope 2 includes greenhouse gas emissions resulting from the production of purchased and consumed energy. 
  • Scope 3 includes all other indirect greenhouse gas emissions resulting from the company’s operations, but the emission sources themselves are not owned or controlled by the company. Such emission sources include, for example, emissions from the production of purchased goods and services, as well as emissions from business travel and commuting. Scope 3 emissions are further categorized into fifteen different emission categories. 

Why it’s Important to Reduce a Company’s Greenhouse Gas Emissions

The EU Corporate Sustainability Reporting Directive (CSRD) reporting obligation will come into effect for the first companies in 2024. The CSRD aims to expand the scope of reporting and establish more uniform reporting standards. 

The CSRD requires companies to ensure that their business aligns with the goals of the Paris Climate Agreement. Meeting this requirement necessitates companies to monitor greenhouse gas emissions with greater precision and to ambitiously and purposefully reduce emissions. 

While not all small and medium-sized enterprises may face the same pressure for emission reductions, the emission reduction efforts and goals of larger companies flow down the value chain to smaller businesses. Thus, promoting climate responsibility may become a significantly more important competitive advantage for small and medium-sized enterprises in the future. 

How to Get Started in Reducing Greenhouse Gas Emissions

Identifying the emission sources that are crucial to a company’s operations and calculating emissions is the first step in managing a company’s climate impact. With the identification of the most significant emission sources, a company can set appropriate and effective measures and targets for its operations. 

Timely and targeted measures enable the reduction of emissions in a company’s business in both the short and long term. In the future, it will no longer suffice to manage emissions from one’s own operations (scope 1 & 2), but it will also be important to target emission reduction measures towards the emissions in the value chain (scope 3). 

Our team of experts are happy to assist you with any questions related to greenhouse gases, their calculation, monitoring, and reporting. 

Do you have any questions? Send your questions via the form below, and we will get back to you soon. 



    What are scope 3 emissions and why are they important?

    Scope 3 emissions is the third emission category of the GHG protocol. The GHG protocol (Greenhouse Gas Protocol) is the most used standard for measuring and reporting greenhouse emissions, where emissions are divided into three different categories: scope 1, scope 2 and scope 3. 

    A large part of the company’s climate impact consists of greenhouse gas emissions, of which the most significant are carbon dioxide (CO2), methane (CH4) and nitrous oxide (N2O) emissions. Reducing greenhouse gas emissions and sustainable development are increasingly central goals for companies around the world. Companies operating in the EU region are also obliged by various directives, according to which companies must report on the environmental impacts caused by their business activities annually. 

    What do Scope 3 emissions include?

    Scope 3 emissions cover all indirect greenhouse gas emissions that occur because of the company’s operations, but the emission sources are not directly owned or controlled by the company. These emissions include, for example, emissions caused by the supply chain, emissions from transport, emissions from the use of sold products and emissions from waste treatment. 

    These emissions are the broadest and most complex part of the calculation of greenhouse gas emissions, and the emission sources can vary significantly between different companies depending on their industry and operating models. 

    The emissions therefore consist of indirect greenhouse gas emissions from the company’s value chain. These emission sources can be divided into upstream and downstream emission sources, depending on where they are located in the production chain – before or after the company’s own operations. 

    Upstream emission sources include all indirect emissions that occur in the company’s value chain up to the moment of handing over one’s own product or service. 

    The GHG protocol divides these emission sources into eight different categories: 

    • Purchased products and services 
    • Fixed assets 
    • Activities related to fuels and energy that have not been taken into account as part of the scope 1 & 2 calculation 
    • Upstream transportation and distribution 
    • Handling of waste generated in operations 
    • Business trips 
    • Property leased by the company 

    Downstream emission sources include all indirect emissions that occur after the product or service is delivered to the customer. 

    The GHG protocol divides these emission sources into seven different categories: 

    • Downstream transportation and distribution 
    • Processing of sold products 
    • Emissions from the use of sold products 
    • Emissions from the final processing of sold products 
    • Downstream leased property 
    • Franchise Business Emissions 
    • Emissions from investment activities 

    Monitoring and reporting of Scope 3 emissions

    Monitoring and reporting of Scope 3 emissions is important because it provides a comprehensive picture of the company’s climate impacts. Although a company can quite easily manage and reduce its direct (scope 1) and indirect emissions related to energy consumption (scope 2), scope 3 emissions typically make up a significant part of the company’s total emissions. 

    Monitoring and reporting help companies identify the most significant sources of emissions and set appropriate goals to reduce emissions in the entire value chain. 

    Challenges and opportunities of Scope 3 emissions 

    Calculating and reporting Scope 3 emissions is a challenge for companies, as determining scope 3 emissions requires cooperation with the entire value chain and data collection from several different actors. In addition, estimating emissions can be complex when considering different industries and different geographical areas. 

    However, the investigation of Scope 3 emissions offers opportunities for companies. Their effective management can lead to cost savings, improved resource efficiency, better value chain cooperation and the discovery of new business opportunities. For example, evaluating the environmental impacts during the products’ life cycle and eco-design can help reduce environmental impacts in the supply chain. 

    Scope 3 emissions are a significant part of companies’ environmental impact

    Monitoring and reporting of Scope 3 emissions is an important part of companies’ sustainable development strategy. Although scope 3 emissions can be challenging to manage, they also offer opportunities to improve efficiency and find new business opportunities. Companies can take advantage of expert help and cooperation with various actors in the value chain to achieve their goals. 

    Ecobio’s team of experts will be happy to help you with all questions related to greenhouse gases and their monitoring and reporting. 



      What are scope 2 emissions and why are they important?

      Scope 2 emissions form a significant part of the climate impacts of the company’s own operations. They cover the indirect emissions of energy production, which arise because of purchased and consumed energy production. The emissions are part of the greenhouse emissions inventory according to the GHG Protocol (Greenhouse Gas Protocol) measurement and reporting standard. The GHG protocol is the most used standard for measuring and reporting greenhouse emissions, where emissions are divided into three different categories: scope 1, scope 2 and scope 3.

      What do Scope 2 emissions include? 

      Emissions include all greenhouse gas emissions that arise from the production of energy purchased from another party. This includes emissions from the production of purchased electricity, heat, steam or cooling.  

      Electricity and heat purchased for most companies are the main sources of scope 2 emissions. However, it should be noted that for some companies, the separate procurement of steam and cooling can also cause scope 2 emissions. On the other hand, if the company produces some or all its own energy, the emissions from production are taken into account as part of the calculation of scope 1 emissions. 

      Why is monitoring and reporting of scope 2 emissions important?

      Monitoring and reporting of greenhouse gas emissions is an important part of companies’ environmental responsibility. Emissions calculation helps companies understand the climate impacts of their own operations and set goals for reducing emissions. The GHG protocol unifies emissions calculation and reporting, which ensures uniform implementation of companies’ emission calculations and, to some extent, enables comparison of results. In addition, monitoring greenhouse gas emissions provides transparency to stakeholders such as customers, investors, and authorities. 

      Reporting of greenhouse emissions 

      Since 2014, the European Union’s NFR Directive (Non-Financial Reporting Directive) has required all companies employing more than 500 people to report on their social and environmental impacts. This obligation also applies to the reporting of greenhouse gas emissions. 

      From 2024, the reporting obligation according to the new CSRD (Corporate Sustainability Reporting Directive) will enter into force, and with it, the reporting will move to an approach in accordance with the new guidelines. The new directive aims to expand the scope of reporting and establish more uniform reporting standards. In addition, the reporting obligation will gradually extend to all listed companies. 

      Reducing emissions and optimizing energy

      It is important that companies understand the importance of scope 2 emissions and take them into account in their environmental strategy. Emission reduction measures and optimization of energy procurement can help companies reduce their carbon footprint and promote sustainable development. 

      Ecobio’s team of experts are ready to help companies with issues related to greenhouse gas emissions, monitoring, and reporting, so that they can fulfill their reporting obligations and act responsibly towards the environment. 



        What are Scope 1 emissions and why are they important?

        Scope 1 emissions are part of the greenhouse emissions inventory according to the measurement and reporting standard of the GHG protocol (Greenhouse Gas Protocol). 

        A large part of the company’s climate impact consists of greenhouse gas emissions, of which the most significant are carbon dioxide (CO2), methane (CH4) and nitrous oxide (N2O) emissions. The most used standard for measuring and reporting greenhouse emissions is the GHG protocol, where emissions are divided into three different categories: scope 1, scope 2 and scope 3. 

        GHG protocol

        The GHG protocol is a global standard for measuring and managing greenhouse emissions. The GHG protocol unifies the calculation and reporting of emissions, which ensures uniform implementation of companies’ emission calculations and to some extent enables the comparison of results.  

        According to the Greenhouse Gas Protocol, emissions are divided into three different categories:  

        • Scope 1 includes all direct greenhouse emissions from the company’s own operations 
        • Scope 2 includes greenhouse emissions caused by the production of energy (electricity, heat, steam and district cooling) purchased and consumed in the company’s operations 
        • Scope 3 includes other indirect greenhouse emissions related to the company’s operations, such as business travel, waste handling and primary production of purchases. Scope 3 contains 15 different emission categories. 

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        What about Scope 1 emissions? 

        Scope 1 emissions consist of the company’s direct emissions caused by resources owned or controlled by the company. Scope 1 class emissions are generated directly because of the company’s operations, and these are the easiest ones for a company to control.  

        Scope 1 emission sources

        The emission sources are direct emissions from the company’s own operations: 

        1. Process emissions. Process emissions refer to direct greenhouse gas emissions, such as methane emissions from anaerobic fermentation or natural gas flaring, generated in the company’s operations. 
        1. Own energy production. If the company produces operational energy either for its own use or that of other operators, the emissions resulting from energy production are included in the scope 1 emissions of the reporting company. 
        2. Fuel consumption. Emissions caused by fuel consumption in machines, equipment and vehicles owned or managed by the company. 
        3. Fugitive emissions. Fugitive emissions are so-called leak emissions, which are caused, for example, because of pipe and equipment leaks. Fugitive emissions occur not only in industry but also in ordinary home and office conditions, such as, for example, malfunctioning refrigerators and air conditioners. Fugitive emissions can be reduced or completely avoided by taking care of the equipment’s condition and maintenance appropriately and by repairing or replacing malfunctioning equipment. 
        4. Scope 1 emissions therefore include greenhouse gas emissions directly caused by the company’s own operations. Since emissions are generated because of the company’s own operations, it is also the easiest to influence them. 

        Calculation of Scope 1 emissions

        When calculating Scope 1 emissions, it is essential to identify the direct emissions of one’s own operations. In terms of identifying emissions, it is important to define the organizational boundaries of the reporting company.  

        The organizational boundary determines which emissions are the company’s own and indirect (scope 1&2) emissions related to energy consumption, and which are value chain (scope 3) emissions. Organizational demarcation is done in accordance with the GHG protocol either based on the company’s capital share or management. 

        After identifying the Scope 1 emission sources, the consumption figures for the reporting year necessary for the calculation are collected. If direct consumption figures, such as liters of fuel consumed during the year, are not available, the calculation can be made based on secondary data sources, such as kilometers driven during the year. 

        In terms of calculation, it is also essential to identify and determine the appropriate emission factor for each emission source. The most accurate calculation result is achieved by using supplier-specific emission coefficients, but if emission data is not available from the supplier, emission coefficients available from public or commercial data sources can also be used in the calculation. 

        Ecobio’s experts are happy to help you with all questions related to greenhouse gases and their monitoring and reporting.  



          What does scope 1, 2 and 3 emissions mean?

          The most internationally used standard for measuring and reporting greenhouse emissions is the GHG protocol (Greenhouse Gas Protocol), where emissions are divided into three different categories: scope 1, scope 2 and scope 3. 

          When reporting on the climate impacts of business operations, it is customary to classify emissions into scope 1, 2 and 3 categories in accordance with the GHG protocol. Classification of emissions reduces the risk of double counting between emission calculations of different companies and helps the company and the company’s stakeholders to understand the most significant emission sources of the company’s business in its own and value chain operations. 

          Many companies also report value chain emissions in more detail, broken down into fifteen different emission categories. By utilizing emission data, the company is able to identify the most relevant emission sources for its operations and optimize its business to reduce the burden on the environment. 

          Greenhouse gas emissions caused by the company’s operations, such as carbon dioxide (CO2), methane (CH4) and nitrogen oxide (N2O) emissions, are a significant environmental aspect related to the business. 

          Growing reporting obligations, such as the CSRD sustainability reporting directive, now and in the future require companies to report in detail the environmental impacts of their business operations  

          Scope 1, scope 2 and scope 3 classification

          In accordance with the Greenhouse Gas protocol, emissions are classified as follows: 

          • Scope 1 includes all direct greenhouse emissions that are formed as a result of the company’s operations 
          • Scope 2 includes greenhouse emissions caused by the production of purchased and consumed energy 
          • Scope 3 includes all other indirect greenhouse emissions that are formed as a result of the company’s operations, but the emission sources themselves are not owned or controlled by the company. Such emission sources include, for example, emissions from the primary production of purchases and emissions caused by travel and transport. Scope 3 emissions are broken down into fifteen different emission categories. 

          Scope 1: direct greenhouse emissions 

          Scope 1 emissions consist of direct emissions from resources owned or controlled by the company. Emissions are created as a direct result of the company’s operations, and these emission sources are typically the easiest to control. 

          Scope 1 emissions can be divided into four groups: 

          Process emissions 

          Process emissions refer to direct greenhouse gas emissions, such as methane emissions from anaerobic fermentation or natural gas flaring, generated in the company’s operations. 

          Own energy production 

          If the company produces operational energy either for its own use or that of other operators, the emissions resulting from energy production are included in the scope 1 emissions of the reporting company. 

          Fuel consumption 

          Emissions caused by fuel consumption in machines, equipment and vehicles owned or managed by the company. 

          Fugitive emissions 

          Fugitive emissions are so-called leak emissions, which are caused, for example, as a result of pipe and equipment leaks. They occur not only in industry but also in ordinary home and office conditions, such as, for example, malfunctioning refrigerators and air conditioners. These emissions can be reduced or completely avoided by taking care of the equipment’s condition and maintenance appropriately and by repairing or replacing malfunctioning equipment. 

          Scope 1 emissions therefore include greenhouse gas emissions directly caused by the company’s own operations. Since Scope 1 emissions are generated as a result of the company’s own operations, it is also the easiest to influence them. 

          Scope 2: indirect greenhouse emissions of energy consumption

          Scope 2 emissions include all greenhouse gas emissions that arise from the production of energy purchased from another party. This includes emissions from the production of purchased electricity, heat, steam or cooling. 

          Electricity and heat purchased for most companies are the main sources of scope 2 emissions. However, it should be noted that for some companies, the separate procurement of steam and cooling can also cause scope 2 emissions. On the other hand, if the company produces some or all of its own energy, the emissions from production are taken into account as part of the calculation of scope 1 emissions. 

          By identifying the most essential scope 2 emission sources, the company can develop its energy consumption and procurement in a more sustainable direction and reduce the emissions of its business. 

          Scope 3: indirect greenhouse emissions of the value chain 

          Scope 3 emissions cover all indirect greenhouse gas emissions that occur as a result of the company’s operations, but the emission sources are not directly owned or controlled by the company. These emissions include, for example, emissions caused by the supply chain, emissions from transport, emissions from the use of sold products and emissions from waste treatment. 

          In most companies, the majority of greenhouse gas emissions are generated in the company’s value chain, either upstream or downstream in relation to the company’s own operations. 

          Upstream emission sources include all indirect emissions that occur in the company’s value chain up to the moment of handing over one’s own product or service. 

          The GHG protocol divides these emission sources into eight different categories: 

          • Purchased products and services 
          • Fixed assets 
          • Activities related to fuels and energy that have not been taken into account as part of the scope 1 & 2 calculation 
          • Upstream transportation and distribution 
          • Handling of waste generated in operations 
          • Business trips 
          • Business trips 
          • Property leased by the company 
          • Downstream emission sources include all indirect emissions that occur after the product or service is delivered to the customer. 

          The GHG protocol divides these emission sources into seven different categories: 

          • Downstream transportation and distribution 
          • Processing of sold products 
          • Emissions from the use of sold products 
          • Emissions from the final processing of sold products 
          • Downstream leased property 
          • Franchise Business Emissions 
          • Emissions from investment activities 

          Why is monitoring the company’s emissions important? 

          Carbon footprint monitoring and reporting is an important way for companies to take responsibility for their environmental impact. Since 2014, all companies employing at least 500 people have been obliged to report on their social and environmental impacts in accordance with the European Union’s NFR (Non-Financial Reporting Directive). 

          With the Corporate Sustainability Reporting Directive (CSRD), responsibility reporting will become even more precise and demanding for companies. 

          With the new CSRD directive, it was intended to expand the scope of the corporate reporting guidelines and more uniform reporting standards. In addition, the reporting obligation will gradually extend to all listed companies. 

          Scope 1, 2 and 3 emissions included in responsibility reporting  

          In the EU, various directives oblige companies to report on the environmental harm and social impact of their business operations. 

          Since 2014, the European Union’s NFR Directive (Non-Financial Reporting Directive) has obliged all companies employing more than 500 people to report on their social and environmental impacts. This obligation also applies to the reporting of greenhouse gas emissions. 

          From 2024, the reporting obligation according to the new CSRD (Corporate Sustainability Reporting Directive) will enter into force, and with it, reporting will move to an approach in accordance with the new guidelines. 

          The CSRD directive aims to expand the scope of reporting and establish more uniform reporting standards. CSRD requires companies to ensure that the company’s operations are in line with the goals of the Paris Climate Agreement. Meeting this requirement requires companies to monitor greenhouse gas emissions even more closely and to achieve ambitious and goal-oriented emission reductions. 

          Management of climate effects particularly responsible business activities

          Finding out the sources of greenhouse gas emissions that are relevant to the company’s operations and calculating the emissions is the first step in managing the company’s climate impacts. By identifying the most significant emission sources, the company can set appropriate and effective emission reduction targets for its own operations. 

          Timely and targeted measures make it possible to reduce emissions in the company’s business in the short and long term. In the future, it will no longer be enough to manage the emissions of one’s own operations (scope 1&2), but it is also necessary to apply emission reduction measures to the emissions of the value chain (scope 3). 

          It is important to include the management and planned reduction of climate impacts as part of the company’s responsibility strategy, because the company’s climate responsibility is an inseparable part of sustainable business operations. The stricter requirements and expectations of stakeholders and legislation regarding responsibility require ambitious and effective climate measures. 

          Although not all small and medium-sized companies are necessarily under the same pressure in terms of emission reductions, the emission reduction measures and targets of large companies trickle down the value chain to smaller companies as well. For this reason, it is also time for SMEs to include climate issues as part of their responsibility strategy and to prepare well in advance for possible future claims. 

          Ecobio’s team of experts are happy to help you with all questions related to greenhouse gases and their monitoring and reporting. 

          Submit your question via the form below and we’ll get back to you shortly. 



            Materiality assessment creates the foundation for Responsibility Goals and Sustainability Reporting

            The Materiality Assessment tells about the sustainability risks to which the company is exposed, as well as the effects of the company’s own operations on people and the environment.

            The materiality assessment helps to understand the most significant activities related to responsibility for the company and to identify the issues that have a key impact on the company’s ability to create value. With the help of a materiality assessment, companies have a clearer picture of the sustainability risks to which the company is exposed, as well as the effects of the company’s own operations on people and the environment.

            Materiality assessmentThe double materiality principle guides the materiality assessment of companies

            With the help of a comprehensive materiality assessment, the most significant sustainability aspects for the company are defined and the issues that have a central effect on the company’s ability to create value are identified. Companies should act on time and map the situation of the operating environment that is essential for the company. Forerunner companies have the best opportunities to ensure new business opportunities through responsible operations.

            The materiality assessment of corporate responsibility serves as the basis for the company to have up-to-date information on what kind of effects sustainability risks, such as climate change, can have on the company’s results and operations (outside-in). Companies must also be aware of the effects of their own operations on people and the environment (inside-out). This principle of reporting from both perspectives is called double materiality, which is clarified in the EU Sustainability Reporting Directive (CSRD).

            The principle of double materiality means that the company has to make two separate materiality assessments. In the future, double materiality will serve as a central guiding principle in assessing sustainability effects, but Corporate Responsibility cannot rely on it alone. The company must assess the materiality of sustainability issues and risks from two different perspectives (outside-in and inside-out).

            The aspects of materiality must be taken into account separately, and in addition, the key aspects that are essential for the company from both perspectives must be taken into account. Sustainable Development goals cannot be deprioritized just on the basis that some sustainability risk does not seem to have financial effects on the company. Companies should keep their materiality assessment up to date and update it regularly.

            Sustainability reporting is developing

            The goals of Sustainable Development are now especially relevant for companies’ value creation. Guided by them, the company achieves results in a planned and sustainable way, respecting nature and people. Customers are more aware than before of the possibilities for companies to act in an environmentally friendly manner, and thus the market-based demand for a green transition has grown.

            A company that operates in a sustainable and responsible manner makes climate goals and other sustainable development goals part of its strategy and ensures the achievement of business benefits despite changing world situations. Companies are required to have a clear situational picture of its effects on the environment, society and people, also taking human rights into consideration.

            Sustainability reporting will be a regulatory obligation in the future, when the new corporate sustainability reporting directive (CSRD) becomes applicable in all EU member states. An even larger number of companies will be covered by the reporting obligation, which must report more detailed information about their business operations. At the latest, as required by regulation, company management must take a more significant role than before in setting the company’s sustainability goals and ensuring the achievement of responsibility goals.

            Materiality assessment in cooperation with Ecobio
            We help your company prepare a versatile corporate responsibility materiality assessment and a road map, with which the responsibility goals are more easily utilized in strategic decision-making.



              Corporate Sustainability Reporting Directive (CSRD) explained

              Corporate Sustainability Reporting Directive (CSRD) is in action since January 2023. CSRD will strengthen and standardize the rules for how companies are required to report on their social and environmental activities and their impact on people and the planet. Currently Corporate Sustainability Reporting Directive impacts approximately 50 000 companies in Europe.

              CSRD timeline and what to expect in the future

              The Corporate Sustainability Reporting Directive applies to companies in the following order:

              • From January 2024, listed companies with more than 500 people (i.e. those already covered by the NFRD are obliged to prepare a statement of non-financial information and publish information according to the EU taxonomy).
              • From January 2025, listed and unlisted companies that meet at least two of the following criteria: more than 250 employees, revenue of 20 million euros or more than 40 million euros in turnover.
              • Listed SMEs from 1 January 2026.
              • From January 2028 CSRD expands to third-country companies with turnover over 150 million euros.

              Companies subject to the CSRD will have to report according to European Sustainability Reporting Standards (ESRS).

              ESRS entered a four-week feedback period for the first set of Sustainability Reporting Standards, the feedback period lasts from 9th of June to 7th of July 2023.

              These mandatory reporting standards aim to ensure that companies are fully transparent about their impact on people and the environment. The standards will also be a key tool in trying to extinguish green washing. The new standards will assist companies in communicating and managing their sustainability performance more efficiently.

              After the four week feedback period, the commission will consider the feedback given and then finalise the standards. When adopted, the standards will be used by companies that are subjected to CSRD (Corporate Sustainability Reporting Directive) reporting requirements. This will be another step forward to the goal to achieve a sustainable EU economy.The requirements for different companies will be phased in gradually, depending on factors such as company size and revenue.

              Additionally, all sustainability reports must be verified by an independent assurance provider, to ensurereliable information. CSRD also supports and requires reporting in digital format.

              Prepare now for CSRD reporting

              In 2023 prepare reporting systems. Ensure you have clear Key Performance Indicators (KPI’s), goals and a plan in place for 2024 reporting requirements.

              In 2024 gather data trough out the year for 2025 reporting and review it with your accountant.  Note, if your company is subjected to NFRD you are required to report on 2024 data in 2025.

              In 2025 review your reporting activities and systems to establish or improve for 2026 reporting. It is also good to note that many companies that are not yet in the scope of CSRD will have to report for the companies that are in the scope because they need information about their supply chain’s impacts.

              CSRD explained by Ecobio

              Corporate Sustainability Reporting Directive reporting requirements

              CSRD is adding requirements on top of the Non-Financial Reporting Directive (NFRD). According to the NFRD, large companies must report on:

              • environmental matters
              • social matters and treatment of employees
              • respect for human rights
              • anti-corruption and bribery
              • diversity on company boards (in terms of age, gender, educational and professional background)

              With the Corporate Sustainability Reporting Directive companies need to also report on:

              • governance relating to sustainability impacts, risks and opportunities
              • impacts of sustainability-related risks and opportunities on the company’s strategy, business and financial planning
              • processes for identifying and assessing sustainability impacts, risks and opportunities
              • metrics and targets that are used to assess and manage sustainability risks and opportunities

              Corporate Sustainability Reporting Directive impact on business strategy

              Sustainability will in the future have a bigger role in the evaluation of companies. In addition to the reporting obligations, CSRD sets other requirements for companies. For example, in the future companies must plan how to take climate and other sustainability risks into account in the business model and strategy, as well as the transition to a climate-neutral economy.

              The role of the company’s management and board of directors must now be strengthened in accordance with sustainability goals. The interest of customers and investors in responsible and environmentally sustainable businesses has grown. This contributes to the financing companies receive for sustainable and responsible projects.

              The direction is clear even for those who have not yet been able to participate in creating responsible businesses. Common sustainable development rules accelerate the market, creating new growth opportunities for companies.

              Large companies are already obliged to annually publish information on how much of their operations are in line with the EU taxonomy’s climate and environmental goals. The first EU taxonomy reporting was due in the first months of 2023.

              Benefits of CSRD directive

              According to the European Parliament, The CSRD will improve the existing legislation (NFRD) by requiring more detailed information from companies’ impact on the environment, human rights and social standards, that are in line with the EU’s climate goals.

              What we can expect from adapting to CSRD is

              • Standardized reporting on companies’ activities on people and the planet, therefore providing the opportunity to compare sustainability reports to one another.
              • Direct finances and investments to activities and businesses that create a positive or ‘net-zero’ impact on the planet and people.
              • CSRD pushes management to adapt to or improve their strategies to be aligned with sustainability and EU climate goals.
              • CSRD enforces companies’ capability to mitigate risks, such as climate risks that will help companies to ensure longevity.

              Adapting to CSRD requirements as soon as possible is recommended, due to the vast scope of the directive. Where to start from depends on the company’s status with sustainability matters and how well they are documented and reported in the past.

              Building a reporting system with Double Materiality assessment is a highly recommended starting point as it is required in the directive to be analysed.

              If you wish to talk more about CSRD, don’t hesitate to contact us below or send an email to info@ecobio.fi.



                A four-week feedback period on the first set of Sustainability Reporting Standards has been launched  

                Sustainability Reporting Standards

                The EU Commission launched a four week feedback period on the first set of Sustainability Reporting Standards. The feedback period lasts from 9th of June to 7th of July 2023.  

                These mandatory Reporting Standards aim to ensure that companies are fully transparent about their impact on people and the environment. The standards will also be a key tool in trying to extinguish green washing. The new standards will assist companies in communicating and managing their sustainability performance more efficiently.  

                After the four week feedback period, the commission will consider the feedback given and then finalise the standards. When adopted, the standards will be used by companies that are subjected to CSRD (Corporate Sustainability Reporting Directive) reporting requirements. This will be another step forward to the goal to achieve a sustainable EU economy.  

                The requirements for different companies will be phased in gradually, depending on factors such as company size etc. 

                Are you interested in knowing more?  

                Contact us and our experts will get back to you! 



                  The 2023 IPCC AR6 Synthesis Report: a final wake-up call for Climate Action

                  The Intergovernmental Panel on Climate Change (IPCC) has released its latest report on the state of the planet’s climate “2023 IPCC AR6 Synthesis Report “. The report, which was compiled by hundreds of scientists from around the world, provides a stark warning about the urgent need to address the climate crisis.

                  The report concludes that human activity, particularly the burning of fossil fuels, is driving unprecedented changes in the Earth’s climate system, resulting in rising temperatures, sea level rise, and more frequent and intense weather events. These changes significantly impact ecosystems, food systems, and human health and well-being.

                  The 2023 IPCC AR6 Synthesis Report – Key Findings:

                  The earth is warming at an unprecedented rate

                  Human influence has warmed the climate at an unprecedented rate in the 21st century, and the current warming is highly likely to exceed 1.5°C above pre-industrial levels in the next two decades. Limiting global warming to 1.5°C above pre-industrial levels will require rapid, far-reaching, and unprecedented changes in all aspects of society, including the energy, land, and industrial sectors.

                  Immediate, rapid, and large-scale reductions in greenhouse gas emissions are needed to limit global warming to 1.5°C and mitigate the worst impacts of climate change. Adapting to the impacts of climate change is also essential, particularly for vulnerable communities and ecosystems.

                  The impacts of climate change are already being felt around the world.

                  The report highlights that climate change is not some far-off threat, but rather a present-day reality that is already having significant impacts on people and the planet. These impacts include more frequent and severe heatwaves, droughts, floods, and wildfires, as well as rising sea levels and ocean acidification.

                  There is a narrow window of opportunity to prevent the worst impacts of climate change.

                  Despite the bleak picture painted by the report, there is still hope. The report notes that we still have a narrow window of opportunity to prevent the worst impacts of climate change. However, this will require immediate and decisive action from governments, businesses, and individuals around the world.

                  The 2023 IPCC AR6 Synthesis Report was released in March 2023. Read this short summary of key findings from the report!

                  The message of the IPCC report is clear for business managers like you 

                  One of the report’s key messages is that the world is already experiencing the impacts of climate change which will only worsen in the coming decades, even if we take immediate and ambitious action to reduce greenhouse gas emissions.

                  However, the report also emphasises that the worst impacts of climate change can still be avoided if we act quickly and decisively to limit global warming to 1.5°C above pre-industrial levels. For the business sector, this means that management must prioritise sustainability and invest in renewable energy and low-carbon technologies.

                  For sustainable business operations, it is essential to conduct a comprehensive risk assessment for adapting to climate change.

                  1. Reducing emissions is an absolute requirement for a company’s business operations and throughout the value chain (scope 1, 2, 3). It is recommended that corporate management set science-based climate goals on their agenda already this spring.
                  2. Considering biodiversity alongside climate goals is equally important in developing a company’s sustainability strategy. Companies should identify how their operations affect biodiversity and make a plan to minimise those impacts.

                  Lastly, the scientific evidence presented in the IPCC report reinforces the ambitious requirements already adopted by the EU for complying with the climate goals of the Paris Agreement. Limiting global warming to 1.5 degrees Celsius also requires companies to take action to reduce emissions across all economic sectors.

                  The IPCC report is a wake-up call for all of us

                  We must act now to address the climate crisis before it’s too late. Here are some things you can do to help:

                  • Reduce your company’s carbon footprint by investing in energy-efficient technologies, using renewable energy sources, and implementing sustainable business practices.
                  • Support political candidates and policies prioritising climate action and promoting a sustainable business environment.
                  • Join a local climate organization or advocacy group to collaborate with like-minded businesses and individuals and advance the movement for climate justice.
                  • Educate your employees and customers on the importance of sustainable practices and the impact of climate change and encourage them to adopt environmentally responsible behaviours.
                  • Take part in industry-wide initiatives to reduce carbon emissions and promote sustainable business practices, such as participating in carbon markets or joining industry associations dedicated to climate action. Such as Science-based targets.

                   

                  Together, we can create a sustainable and just future for ourselves and future generations.

                  To continue this conversation, send us an email via the form below.




                    Writer: Terhi Valtonen, Senior sustainability consultant, M.sc. (Admin)

                    IPCC 2023 AR6 Longer report