"How resilient is the company's strategy and business model to biodiversity and ecosystem-related physical, transition, and systemic risks? Please include the following information: (a) the assessment of resilience to these risks, (b) the scope of the analysis for the company’s own operations and its upstream and downstream value chain, (c) the key assumptions made, (d) the time horizons used, (e) the results of the resilience analysis, (f) the involvement of stakeholders, including, where appropriate, holders of indigenous and local knowledge."
CSRD
When describing the resilience of your strategy and business model in relation to biodiversity and ecosystems, include the following details:
Assessment of Resilience to Risks:
Assess the resilience of your current business model and strategy to risks related to biodiversity and ecosystems. These include:
Physical risks (e.g., impacts from habitat destruction, ecosystem degradation, climate change)
Transition risks (e.g., regulatory changes, shifting market demand towards sustainable practices)
Systemic risks (e.g., global biodiversity loss affecting supply chains, resource availability)
Scope of Resilience Analysis:
Define the scope of your resilience analysis, covering both your own operations and your upstream (e.g., suppliers) and downstream value chain (e.g., customers, waste management).
Specify which risks were considered in the analysis (e.g., ecosystem service disruptions, loss of biodiversity in sourcing regions, supply chain dependencies).
Key Assumptions:
Highlight the key assumptions made in the resilience analysis. This could include assumptions on future regulatory changes, ecosystem health trends, or market shifts.
Indicate how these assumptions influence your strategy’s adaptability.
Time Horizons:
Specify the time horizons used in the resilience analysis. This could include short-term (1-5 years), medium-term (5-10 years), and long-term (10+ years) periods, depending on the nature of the risks assessed.
Results of the Resilience Analysis:
Provide the results of the resilience analysis, including how the business model and strategy perform under different biodiversity-related scenarios.
Discuss any identified vulnerabilities and the potential impacts on operations, financial performance, or reputation.
Stakeholder Involvement:
Describe the involvement of stakeholders in the resilience analysis process.
Include, where appropriate, the contributions from indigenous and local knowledge holders, who may offer critical insights into the biodiversity risks and opportunities relevant to your business.
Ensure your response is comprehensive, transparent, and clearly demonstrates how biodiversity and ecosystem considerations are integrated into the resilience of your business model and strategy.
https://xbrl.efrag.org/e-esrs/esrs-set1-2023.html#6332