Struggling with ESRS E4? You are not alone!

Introduction

With the first CSRD deadline approaching, many companies are grappling with the complexities of ESRS E4 reporting. A recent PwC showed that 17% of companies which see biodiversity as material are not confident about their E4 reporting capabilities, making it the biggest concern of all standards!

Key CHALLENGES

From our discussions with companies preparing for ESRS E4, here are some of the key challenges they are facing:

1. Defining site boundaries: Identifying specific locations and their ecological boundaries for biodiversity reporting can be tricky, especially in complex or shared ecosystems.
2. Fragmented and costly data: Biodiversity data is often scattered, sometimes expensive, and varies in quality, making it difficult to obtain consistent information across different regions.
3. Multifaceted biodiversity: Biodiversity impacts are multi-dimensional, involving species, ecosystems, and habitats, requiring companies to consider various facets of nature.
4. Lack of standardized metrics: Unlike carbon, biodiversity lacks universally agreed-upon metrics, complicating efforts to measure and compare impacts.
5. Limited internal expertise: Companies have historically focused on carbon, leading to a lack of in-house knowledge and experience in biodiversity reporting.
6. Managing data with outdated tools: A significant 74% of companies are still using spreadsheets for sustainability reporting (PWC), which is inefficient and prone to errors when managing complex biodiversity data.

Conclusion

The Leeana platform simplifies these challenges by offering a comprehensive, user-friendly tool for ESRS E4 reporting.

Sources

PWC (2024), PwC CSRD Survey 2024, available athttps://www.pwc.com/gx/en/issues/esg/global-csrd-survey.html