General Example - Other Environmental Issues
In addition to climate change, all companies should assess which other environmental issues they consider material. Material are all issues where companies have significant impacts or are subject to legal obligations. If companies do not consider material a topic that is habitually material within their sector, they should publish a statement of no identified risks.
Finance companies should report on their investment, lending, insurance and asset management activities (eg. data regarding assets of investee companies that are located in World Heritage Sites and other environmentally protected areas).
For each material issue, companies should provide:
- an explanation why they consider the topic material with regards to their business model (their activities cause deforestation in certain regions, they operate in protected areas etc.);
- risk assessment of potential impacts on the environment (eg. polluting discharges, land-use change) as well as foreseeable risks for the company (change of legal requirements, BAT, market developments) and risks in the value chain (where relevant);
- policy preventing and mitigating all identified risks, including due diligence processes implemented and targets set to provide an effective solution (zero loss of biodiversity, reduction of use of water in water scarce areas);
- KPIs presented for the past, current and targeted performance considering identified risks and targets set. Please see the following illustrative examples of how the KPIs should be presented: