How to Choose the Most Suitable ESG Framework for Biodiversity

In the ESG landscape, three frameworks guide reporting: TCFD, GRI, and SASB. The Task Force on Climate-related Financial Disclosures (TCFD) sets standards for transparent communication of climate risks, essential for regulations such as CSRD and IFRS S2. The Global Reporting Initiative (GRI) provides a universal language of sustainability, with standards widely adopted globally. The Sustainability Accounting Standards Board (SASB) focuses on sector-specific financial materiality and is now integrated into the ISSB standards. Understanding these frameworks is essential for building robust ESG strategies, also oriented towards biodiversity protection.

The ESG regulations have evolved, making reporting mandatory for many companies. In Europe, the CSRD requires double materiality assessment and the use of ESRS, with a particular focus on environmental impacts and biodiversity. Globally, the ISSB has issued IFRS S1 and S2 to integrate climate risks into financial statements. The EU Taxonomy establishes stringent criteria for sustainable activities, including ecosystem protection. In the USA, the SEC has introduced mandatory climate disclosure rules for listed companies. Understanding these regulations is essential for effective and compliant ESG reporting.

In 2025, the CSRD underwent significant changes with the "Omnibus Package," which simplified obligations for many companies. The threshold for reporting requirements has been raised: it now only applies to companies with over 1,000 employees, revenue exceeding 50 million, or assets over 25 million euros. Additionally, the deadlines for adoption have been postponed by two years, providing more time to comply. These changes make reporting more manageable, especially for SMEs, without compromising sustainability goals.

Integrating biodiversity requires frameworks that precisely and transparently evaluate environmental impact. The EU Taxonomy is the most specific, requiring companies to declare how their activities protect and restore ecosystems. The ESRS E4 standards and GRI 101 Biodiversity allow for measuring and communicating impacts and dependencies with nature. Although the TCFD and IFRS S2 mostly focus on climate risks, biodiversity emerges as a key element in the management of environmental risks. For those aiming for leadership in environmental protection, choosing the framework most focused on biodiversity becomes a crucial strategic leverage.

To choose the most suitable ESG framework, it's necessary to distinguish between regulatory obligations and voluntary tools. The CSRD and the EU Taxonomy lay out precise rules for European companies, while GRI and SASB represent voluntary standards that enhance reporting and increase transparency to stakeholders. The choice should start with a materiality assessment, considering the environmental, social, and governance impact. High environmental impact sectors such as agriculture, chemicals, and tourism must adopt standards that include specific biodiversity indicators, ensuring complete and credible disclosures.

An effective ESG strategy starts with analyzing the mandatory requirements based on sector and company size. It is useful to integrate voluntary standards such as GRI and SASB, which include specific metrics for biodiversity. The double materiality assessment highlights both the impact on ecosystems and the associated financial risks. Collecting reliable data, transparency in metrics, and setting measurable objectives complete the process. In a context where sustainability increasingly matters in investments, choosing the right ESG framework is an investment in the future and the resilience of the business.

This article was created as part of the "Biodiversity services EU expansion" project (CUP: E43D22000480009) under the Regione Lombardia call "PR FESR 2021-2027 – INTERNATIONALIZATION LINE 21-27", aimed at supporting the internationalization of Italian companies. 3Bee is the naturetech company that develops innovative technologies for the monitoring, protection, and regeneration of biodiversity, supporting companies in defining personalized climate strategies based on the analysis of their impacts and dependencies on nature. With a consolidated portfolio in Italy, Germany, and France and prominent partnerships, 3Bee continues its expansion into international markets to create a tangible impact through technology.