How to build an ESG report with a focus on environment and biodiversity

The first step in constructing a strategic ESG report is the definition of the objectives and the reporting scope, through a materiality analysis consistent with the sustainability strategy. The CSRD directive introduces the double materiality: on the one hand, the impact of ESG factors on the company's economic performance; on the other hand, the effects of the company's activities on the environment, society and human rights. In this context, the financial dimension deals with risks and opportunities related to external events that impact the company's stability, while impact materiality examines the effects of the company's activities on the surrounding natural and social system. The scope of reporting must include the entire value chain and every entity with significant impacts. This approach is central to the ESRS, especially in principle IG2, which guides the transparent assessment of Impacts, Risks and Opportunities (IROs).

To ensure quality, consistency and comparability, the ESG report must adopt internationally recognised standards. European legislation has introduced the European Sustainability Reporting Standards (ESRS), which are the main reference for companies subject to CSRD. The ESRS easily integrate with other international frameworks, such as the GRI, the TCFD and the SASB, which are useful for specific sectors and cross-cutting issues such as climate change or biodiversity. The aim is to produce reporting aligned to the needs of investors, financial institutions and stakeholders, while simplifying bureaucracy for companies by adopting a common language. Choosing the right standard is not just a formal act, but a strategic one: it allows the company to enhance its reputation, access sustainable capital more easily and demonstrate alignment with the European Green Deal.

Stakeholder engagement is fundamental to ESG reporting. To be credible and useful, a report must reflect the expectations and information needs of all stakeholders, from employees to investors, from institutions to local communities. This stakeholder engagement process must be continuous, structured and transparent. Mapping distinguishes primary and secondary stakeholders, both of which are relevant for corporate reputation. Through surveys, interviews, workshops and focus groups, the company can gather vital input to update the materiality analysis and ensure that the report truly reflects the relevant issues. Active involvement strengthens the legitimacy of the report, builds trust and prepares the organisation to respond promptly to market expectations, helping to position the company as responsible, resilient and long-term oriented.

Reliable ESG reporting is based on solid, verifiable and relevant data. It is essential to collect information on each ESG pillar, including environmental indicators (such as GHG Scope 1, 2 and 3 emissions, water consumption, waste, biodiversity impacts), social indicators (diversity, health and safety, community relations) and governance (board structure, risk management, code of ethics). It is essential to establish an internal system to monitor and track this information over time, integrating it with external sources and industry benchmarks. In the environmental sphere, attention must be paid to the analysis of impacts on the ecosystem and on biodiversity, through specific metrics such as land use, degradation of natural habitats. The quality of the data affects the reliability of the report and the company's ability to make strategic decisions in the ecological transition.

The final step in the process is the drafting of the ESG report structured in a clear, accessible and compliant manner. An effective structure includes: strategic introduction, materiality and stakeholder analysis, and separate sections for environment, society and governance. Particular attention should be paid to the environmental section, where it is crucial to highlight the company's impacts on biodiversity, ecosystem protection measures and climate change mitigation and adaptation plans. Companies with a high environmental impact must provide accurate data, explain methodologies and show improvements over time. The report should include key performance indicators (KPIs) and a statement of compliance with ESRS or other adopted standards. Finally, it is advisable to provide for an independent external audit to reinforce the credibility of the document.

This article has been realised within the project "Biodiversity services EU expansion" (CUP: E43D22000480009) in the framework of the Lombardy Region's call for tenders "PR FESR 2021-2027 - LINEA INTERNAZIONALIZZAZIONE 21-27", aimed at supporting the internationalisation of Italian companies. 3Bee is the naturetech company that develops innovative technologies for monitoring, protecting and regenerating biodiversity, supporting companies in defining customised climate strategies based on the analysis of their impacts and dependencies on nature. With an established portfolio in Italy, Germany and France and prominent partnerships, 3Bee continues its expansion into international markets to create real impact through technology.