ESRS E2 - Pollution

What is ESRS E2 – Pollution?

ESRS E2 is one of the standards developed by the European Financial Reporting Advisory Group (EFRAG) under the Corporate Sustainability Reporting Directive (CSRD). This standard focuses on the impacts, risks, and opportunities related to environmental pollution caused by business activities. Its primary objective is to ensure that companies identify, measure, and report their contributions to pollution transparently, as well as their efforts to mitigate it.  

In this context, pollution includes emissions of harmful substances into the air, water, and soil, as well as the generation of hazardous waste. ESRS E2 requires companies not only to quantify these impacts but also to implement strategies to reduce them, aligning with the European Union’s sustainability goals, such as the European Green Deal.

The relationship between ESRS E2 and the carbon footprint

The carbon footprint is a fundamental component of ESRS E2, as emissions of pollutants like carbon dioxide (CO2) and methane (CH4) account for a significant portion of environmental pollution. According to the IPCC (2021), these emissions contribute to climate change and have adverse effects on human health and ecosystems.

ESRS E2 requires companies to measure and report emissions across the three scopes defined by the GHG Protocol:

• Scope 1 emissions: Direct emissions from company activities, such as fossil fuel consumption.
• Scope 2 emissions: Indirect emissions associated with purchased energy consumption.
• Scope 3 emissions: Indirect emissions across the value chain, such as those from transportation or purchased products.

Key requirements of ESRS E2

ESRS E2 establishes several requirements for companies reporting on pollution, including:

1. Identification of pollution sources

Companies must identify all pollution sources associated with their operations, products, and services. This includes air emissions (such as particulates and greenhouse gases), water discharges, and hazardous waste generation.

2. Measurement and quantification

The standard requires accurate measurement of emitted pollutants using internationally recognized methodologies. For example, the GHG Protocol for carbon emissions or the European Environment Agency guidelines for other pollutants.

3. Management and mitigation

In addition to reporting, companies must demonstrate that they are implementing effective strategies to reduce pollution. This may involve investments in clean technologies, process optimization, and collaboration with strategic partners.

4. Transparency and communication

ESRS E2 promotes transparency by requiring companies to publish clear and accessible information about their pollution impacts and mitigation efforts. This includes preparing auditable reports and communicating with stakeholders.

The importance of ESRS E2 in corporate sustainability

Implementing ESRS E2 is not just a regulatory requirement but also an opportunity for companies to demonstrate their commitment to sustainability. By proactively addressing pollution, organizations can:

• Reduce risks: Minimize regulatory penalties and reputational damage.
• Optimize resources: Identify inefficiencies and reduce operational costs.
• Attract investors: Meet responsible investment (ESG) criteria.
• Foster innovation: Develop more sustainable products and services.

In this sense, ESRS E2 aligns with the United Nations Sustainable Development Goals (SDGs), particularly SDG 12 (Responsible Consumption and Production) and SDG 13 (Climate Action).

How Manglai facilitates compliance with ESRS E2

For companies seeking to comply with ESRS E2, advanced measurement and management tools are essential. Manglai offers a comprehensive solution that enables:

• Real-time emission calculation: Using artificial intelligence, Manglai analyzes data from multiple sources to provide precise emission calculations across all scopes.
• Custom report generation: Reports generated by Manglai are auditable and comply with international standards such as the GHG Protocol.
• Reduction planning: Through decarbonization scenarios and tailored recommendations, Manglai helps companies reduce their impacts.

Additionally, the platform integrates data from ERP systems, fleet management, and other sources, providing a comprehensive view of the company’s operations.