As we move toward 2025, companies across Europe will be required to comply with the European Sustainability Reporting Standards (ESRS), which bring greater transparency and accountability to sustainability reporting. These standards aim to establish clear, measurable metrics that align with global environmental goals, ensuring that businesses contribute meaningfully to sustainable development. The ESRS framework, set for full implementation by 2025, will require businesses to report a wide range of sustainability metrics, including climate impact, water usage, and biodiversity considerations. As the pressure to adopt more sustainable business practices increases, ESRS compliance is becoming an essential aspect of corporate strategy.
In this article, we’ll discuss the key sustainability metrics that companies must report under ESRS by 2025, the challenges businesses might face in meeting these standards, and how solutions like refinq can help them navigate this regulatory landscape. Companies can use refinq for real-time risk assessments, ensuring they comply with the ESRS framework while taking actionable steps toward sustainability. For more detailed information on how the Omnibus packages streamline these reporting requirements, check out the full guide to the Omnibus simplification package.
The ESRS framework is integral to ensuring that businesses are held accountable for their environmental impact and sustainability efforts. With sustainability becoming a key factor in investment decisions and consumer choices, ESRS reporting provides companies with the tools to measure, report, and act on their environmental footprint. These metrics are not only about compliance but also about demonstrating a company’s commitment to long-term, environmentally responsible operations.
For example, under the ESRS, companies will be required to report on carbon emissions, energy consumption, and the effects of climate change on their operations. By tracking these metrics, businesses can improve their sustainability performance and contribute to global efforts to meet climate targets. Companies can use platforms like refinq to assess climate risk, forecast future impacts, and create science-based targets for achieving net-zero emissions. Learn more about how refinq can assist with climate risk assessments at this link.
The ESRS framework identifies a set of critical sustainability metrics that companies must disclose to remain compliant with the regulation. Below are some of the most important metrics to be reported under the ESRS framework for 2025.
A core component of ESRS is the reporting of a company’s carbon footprint and climate-related risks. Companies must disclose their Scope 1, Scope 2, and Scope 3 emissions, which cover direct emissions, indirect emissions from energy use, and supply chain emissions. This comprehensive reporting will allow businesses to track and reduce their environmental impact, contributing to net-zero goals and ensuring compliance with international climate agreements.
refinq offers tools to monitor and calculate emissions data, helping companies meet their climate reporting obligations under ESRS. Using real-time data and predictive analytics, businesses can track carbon emissions and other environmental risks over time, ensuring that they remain on track to meet science-based targets.
For a complete list of ESRS carbon reporting metrics, check out this guide, which outlines the specific data points for carbon emissions reporting.
Water usage is another critical metric under ESRS that requires businesses to report how they manage water resources within their operations. Companies must disclose the amount of water consumed, the sources of water, and the impact of their operations on local water resources. This includes water scarcity risks, especially in regions where water availability is a concern.
To meet these requirements, businesses can use refinq to track their water risks and usage, providing insights that can help optimize water consumption and minimize negative environmental impacts. By using machine learning and data integration, refinq enables companies to identify areas for improvement and implement more sustainable water management practices.
Learn more about water and marine resource reporting under ESRS at this link, which includes detailed guidance on how to navigate water reporting requirements.
The ESRS also focuses heavily on the impact of business operations on biodiversity and ecosystems. Companies are required to report on their efforts to preserve natural habitats, protect endangered species, and manage their environmental footprint in a way that fosters biodiversity conservation. This includes identifying any negative impacts on ecosystems and detailing steps taken to mitigate them.
refinq supports businesses by providing tools for biodiversity risk analysis, allowing companies to assess and reduce their impact on local ecosystems. By utilizing advanced geospatial data and climate models, businesses can better understand the long-term impacts of their activities on biodiversity and take proactive measures to protect ecosystems.
For more information on how to navigate the biodiversity reporting requirements, check out this detailed guide, which provides additional insights into biodiversity metrics under the ESRS framework.
While the ESRS framework provides clear guidance, many businesses face challenges in meeting its complex reporting requirements. These challenges include the lack of accurate data sources, difficulty in tracking indirect emissions , and the time-consuming process of gathering and analyzing environmental data.
To help businesses overcome these challenges, refinq offers a data-driven platform that streamlines the process of collecting, managing, and reporting environmental metrics. With real-time data analysis and predictive capabilities, refinq supports companies in maintaining continuous compliance with ESRS and other global sustainability standards.
One of the biggest hurdles businesses face when reporting on sustainability metrics is the challenge of integrating accurate and reliable data from multiple sources. refinq solves this problem by consolidating data from diverse environmental datasets, including earth observation, climate models, and industry-specific reports, providing businesses with comprehensive, actionable insights.
With numerous reporting frameworks and global standards such as ESRS, CSRD, and the Taskforce on Nature-related Financial Disclosures (TNFD), it can be difficult for businesses to navigate the complex compliance landscape. refinq simplifies this process by aligning its tools with international disclosure frameworks, helping companies stay compliant with all relevant standards.
The ESRS framework for 2025 will introduce a new era of sustainability reporting, with key metrics focused on carbon emissions, water usage, biodiversity, and more. For businesses, meeting these ESRS requirements is not only a matter of compliance but also an opportunity to improve their environmental performance and demonstrate sustainability leadership.
By leveraging tools like refinq, businesses can navigate the complexities of sustainability metrics and reporting, ensuring that they meet ESRS standards while creating meaningful impact. With real-time data and predictive analytics, refinq helps companies build actionable strategies that align with their sustainability goals and prepare for the future.