ESRS E3 - Management of Water and Marine Resources in Corporate Sustainability

What is ESRS E3 – Management of Water and Marine Resources?

The ESRS E3 (European Sustainability Reporting Standards, standard E3) is one of the standards developed by the European Union to harmonize sustainability reporting. This standard focuses specifically on the environmental impact related to water use and marine ecosystems. Companies are required to provide information on how they manage these resources and mitigate the risks associated with their exploitation.  The ESRS E3 aligns with other international frameworks, such as the United Nations Sustainable Development Goals (SDGs), particularly SDG 6 (Clean Water and Sanitation) and SDG 14 (Life Below Water). It is also designed to complement the requirements of the widely used GHG Protocol for measuring and reporting greenhouse gas emissions.

The importance of ESRS E3 in corporate sustainability

Water and marine ecosystems are essential resources for life and economic development. However, overexploitation, pollution, and climate change are jeopardizing their availability and quality. According to the UN, over 80% of wastewater generated by human activities is discharged into the environment without adequate treatment, affecting aquatic ecosystems and the communities that depend on them.

In this context, ESRS E3 aims to ensure that companies take responsibility for the sustainable management of these resources. This not only contributes to environmental protection but also helps mitigate financial and reputational risks associated with poor management of water and marine resources.

Relationship with the carbon footprint

The impact on water and marine resources is closely linked to a company’s carbon footprint. For example, water extraction, transportation, and treatment are often energy-intensive processes that generate greenhouse gas emissions. Moreover, the degradation of marine ecosystems, such as coral reefs and mangroves, reduces their ability to act as carbon sinks.

Therefore, measuring and managing these impacts is essential for effective decarbonization and meeting global climate goals.

Key aspects of ESRS E3

ESRS E3 establishes several requirements that companies must meet when reporting on water and marine resources. Key aspects include:

1. Efficient water use: Companies must report the amount of water they use, its source (surface, groundwater, recycled, etc.), and the measures taken to reduce consumption. They must also assess risks associated with water scarcity in the regions where they operate.
2. Wastewater management: Another key aspect is how companies treat and dispose of their wastewater. This includes the volume of water treated, contamination levels, and compliance with local and international regulations.
3. Impact on marine ecosystems: The standard requires companies to assess and mitigate their impact on marine ecosystems. This may include activities such as fishing, maritime transport, or discharging waste into the sea.
4. Innovation and adaptation: ESRS E3 encourages innovation in technologies and practices that promote sustainability, such as water recycling systems or the restoration of marine habitats.

How to comply with ESRS E3

Complying with ESRS E3 requires an integrated approach that combines accurate data collection, risk analysis, and the implementation of corrective measures. Key steps include:

1. Initial assessment: The first step is to conduct an initial assessment to identify the company’s main impacts on water and marine resources. This includes collecting data on water consumption, wastewater generation, and activities affecting marine ecosystems.
2. Implementation of corrective measures: Based on the initial assessment, companies should develop and implement plans to reduce their impact. This may involve installing water efficiency technologies, improving wastewater treatment systems, or adopting sustainable fishing practices.
3. Monitoring and reporting: Continuous monitoring is essential to ensure the effectiveness of implemented measures. Companies should establish key performance indicators (KPIs) and regularly report on their progress.

What are the benefits of complying with ESRS E3?

Complying with ESRS E3 not only helps companies meet legal requirements but also offers additional benefits:

• Enhanced reputation: Companies that sustainably manage water and marine resources are often more highly valued by consumers, investors, and other stakeholders.
• Cost reduction: Efficient water use and waste reduction can result in significant savings.
• Access to financing: Many financial institutions prioritize companies that demonstrate a commitment to sustainability.

How Manglai can help your company comply with ESRS E3

ESRS E3 – Water and Marine Resources is a key standard for ensuring sustainability in water use and marine ecosystem protection. Its implementation not only contributes to environmental preservation but also generates economic and reputational benefits for companies.

Advanced tools like those offered by Manglai can be instrumental for companies seeking to comply with this standard by providing solutions for measuring, managing, and reporting environmental data.