GRI Topic Standard Project for
Biodiversity – Exposure draft
Comments to be received by 28 February 2023
This exposure draft of the revised GRI Biodiversity Topic Standard is published for publiccomment by the Global Sustainability Standards Board (GSSB), the independent standard-setting
body of GRI. This exposure draft is intended to replace GRI 304: Biodiversity 2016.
Any interested party can submit comments on this draft by 28 February 2023 via this online
questionnaire. As required by the GSSB Due Process Protocol, only comments submitted inwriting and in English will be considered. Comments will be published on the GRI website andconsidered a matter of public record. Instructions to submit comments are outlined on the firstpage of the online questionnaire.
An explanatory memorandum preceding the exposure draft summarizes the objectives of the
project and the significant proposals contained within this exposure draft.
This draft is published for comment only and may change before official publication.
For more information, please visit the GRI Standards webpage. For questions regarding theexposure draft or the public comment period, please send an email tobiodiversity@globalreporting.org.

This document has been prepared by the GRI Standards Division and is made available to observers
at meetings of the Global Sustainability Standards Board (GSSB). It does not represent an official
position of the GSSB. Board positions are set out in the GRI Sustainability Reporting Standards. The
GSSB is the independent standard setting body of GRI. For more information visit
www.globalreporting.org.

© GRI 2022

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Explanatory memorandum2
34This explanatory memorandum sets out the objectives for the review of GRI 304: Biodiversity 2016,
the significant proposals contained in the exposure draft, and a summary of the GSSB’s involvement
and views on the development of the draft.

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Objectives for the project6
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The review of GRI 304: Biodiversity 2016 aims to represent internationally agreed best practice andalign with recent developments and the relevant authoritative intergovernmental instruments in thefield of biodiversity.

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As part of the GSSB Work Program 2020-2022, the Global Sustainability Standards Board (GSSB)
identified the review of GRI 304: Biodiversity 2016 as a priority project for commencement in 2021.
Since the GRI disclosures on biodiversity were last revised in 2006, the issue of biodiversity hasreceived significant attention in the global sustainable development agenda.

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Biodiversity features as a key theme in the United Nations’ 2030 Agenda for Sustainable
Development. Both governments and private sector organizations are being called upon to realize
Sustainable Development Goals (SDG) 14 and 15. SDG 14 is devoted to “conserve and sustainably
use the oceans, seas and marine resources”. While SDG 15 is devoted to “protect, restore andpromote sustainable use of terrestrial ecosystems, sustainably manage forests, combat
desertification, and halt and reverse land degradation and halt biodiversity loss”.

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The Intergovernmental Science-Policy Platform on Biodiversity and Ecosystem Services (IPBES)
issued the global assessment report on biodiversity and ecosystem services in 2019, highlighting thatbiodiversity is declining in every region and issues an urgent call to halt and reverse the unsustainable
use of nature.

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At the time of issuance of this exposure draft, parties to the United Nations Convention on Biological
Diversity are negotiating the post-2020 global biodiversity framework, which aims to stabilize
biodiversity loss by 2030 and fully recover natural ecosystems by 2050. The first draft of the post2020 global biodiversity framework proposes in its Target 15 that “all businesses (public and private,large, medium and small) assess and report on their dependencies and impacts on biodiversity”. The
revised GRI Biodiversity Standard could support organizations in meeting reporting obligations
resulting from the adoption of this framework.

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As outlined in the GSSB’s Due Process Protocol, a multi-stakeholder technical committee wasestablished in November 2021 to contribute to the revision of the Biodiversity Standard.

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For more information on the project, consult the Project Proposal and the Terms of Reference of theTechnical Committee.

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Significant proposals

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An exposure draft for the revised GRI Biodiversity Standard has been developed in line with the
project objectives set out above. Notable changes and inclusions in this exposure draft aresummarized below:

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Facilitate reporting impacts across the supply chain. Reporting information on supply chains is
key as the most significant impacts on biodiversity for many organizations is in their supply chains andnot in their own operations. A sole focus on an organization’s activities can lead to under-reporting orreporting on impacts that are not the most significant ones. The proposed disclosures require
information on the organization’s activities and on its suppliers’ activities with the most significant
impacts on biodiversity. Disclosures also include a recommendation to provide information on thedownstream value chain, if available. See Disclosures 304-1 to 304-4.

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Focus on the most significant impacts on biodiversity. Identifying, measuring, and reporting on all
impacts on biodiversity can be challenging for many organizations, especially when taking their supply
chains into account. The proposed disclosures focus on reporting information on the most significant
impacts on biodiversity, not all impacts. Upcoming biodiversity frameworks, such as the Science

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Based Targets Network (SBTN) and the Taskforce on Nature-related Financial Disclosures (TNFD),
are developing methodologies to assist organizations to identify and prioritize the location of theirmost significant impacts. See Disclosures 304-1 to 304-5.

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Emphasis on providing location-specific information on impacts. Impacts on biodiversity aresite-specific. An understanding of the local context where an organization interacts with biodiversity isnecessary to assess its impacts. Disclosure 304-1 requires specific information on the location ofoperational sites with the most significant impacts on biodiversity. It replaces Disclosure 304-1 in GRI
304: Biodiversity 2016. Disclosures 304-2 to 304-4 require information on impacts for each
operational site reported under Disclosure 304-1.

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New disclosure to report on the direct drivers of biodiversity loss (climate change, invasive alien
species, land and sea use change, overexploitation of resources, pollution). Although less accurate
than direct measurements of changes in the state of biodiversity (i.e., changes to species andecosystems), information on direct drivers of biodiversity loss helps understand how an organization
affects biodiversity. In turn, it informs which actions an organization needs to take to manage its
impacts on biodiversity. It replaces requirement 304-2-a in GRI 304: Biodiversity 2016 (see Disclosure304-2).

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New disclosure to report on the changes to the state of biodiversity. Requirements have been
included to report the impact of an organization and its suppliers on ecosystems (i.e., the type, size,and condition of ecosystems affected or potentially affected), and the impact of an organization on
species (i.e., the name and extinction risk of species affected or potentially affected). It replaces
requirement 304-2-b and Disclosure 304-4 in GRI 304: Biodiversity 2016 (see Disclosure 304-3).

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New requirements on the impacts on people resulting from an organization’s impacts on
biodiversity. These requirements complement the disclosures in GRI 411: Rights of Indigenous
Peoples 2016 and GRI 413: Local Communities 2016. Proposed revisions include:

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reporting if the organization operates in proximity to areas of high biodiversity value that areimportant to indigenous peoples and local communities (see Disclosure 304-1);

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reporting the significant ecosystem services and the beneficiaries of these ecosystemservices that are or could be affected by the organization or its suppliers (see Disclosure 3044);

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the management of these impacts, including how the organization addresses the negative
impacts of the transition to halt and reverse the loss of biodiversity on workers and local
communities (see Disclosure 304-6); and

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reporting how the organization respects the provisions set out in the Nagoya Protocol toachieve the fair and equitable sharing of benefits arising from utilizing genetic resources andthe associated traditional knowledge (see Disclosure 304-7).

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New biodiversity-specific management disclosures. These additional disclosures are intended tocomplement Disclosure 3-3 in GRI 3: Material Topics 2021. The new disclosures focus onunderstanding how the organization:

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applies the mitigation hierarchy to manage its biodiversity-related impacts (see Disclosure304-5 - this replaces Disclosure 304-3 in GRI 304: Biodiversity 2016); and

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aligns its policies and commitments with the upcoming Convention on Biological Diversity’s
post-2020 Global Biodiversity Framework and how it implements these policies andcommitments (see Disclosure 304-6).

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Revised definitions. The definition of 'natural ecosystem conversion’ is proposed for inclusion in the
GRI Standards Glossary (see Glossary). The following definitions are removed from the Glossary, as
the terms are no longer used, or have been incorporated in the guidance of the exposure draft:95•

area of high biodiversity value;

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area protected;

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area restored;

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protected area;

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significant impact on biodiversity.

More extensive guidance throughout the draft. This includes example templates for presenting theinformation for Disclosures 304-1 to 304-3 (see Table 1, Table 2, and Table 3).

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GSSB involvement and views on the development of
this draft

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The GSSB appointed two of its members as sponsors for the review of GRI 304: Biodiversity 2016.
The GSSB sponsors observed the TC process and attended most of their meetings.

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The GSSB confirmed its support for the revisions to the GRI Biodiversity Standard when it voted toapprove the draft for public exposure at its meeting on 17 November 2022.

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The recording of the meeting can be accessed on the GSSB website.

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Note on reading this document

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This document includes generic text used in all GRI Standards. This text is highlighted in grey andcannot be changed – please do not comment on this text.

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Underlined terms in the draft Standard indicate terms for which definitions have been provided. Mostof these terms are already defined in the GRI Standards Glossary 2021 – these definitions arehighlighted in grey in the Glossary and cannot be changed. The proposed new definition is nothighlighted in grey and is open for review.

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GRI 304: Biodiversity 202X

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Contents

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Introduction ........................................................................................................................................... 6

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Background on the topic ...................................................................................................................... 6120

System of GRI Standards .................................................................................................................... 6

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Using this Standard ............................................................................................................................. 8

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Topic disclosures .................................................................................................................................. 9123

Disclosure 304-1 Location of operational sites with the most significant impacts............................... 9124

Disclosure 304-2 Direct drivers of biodiversity loss ........................................................................... 13

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Disclosure 304-3 State of biodiversity ............................................................................................... 18

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Disclosure 304-4 Ecosystem services ............................................................................................... 21

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Disclosure 304-5 Management of biodiversity-related impacts......................................................... 23

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Disclosure 304-6 Halting and reversing the loss of biodiversity ........................................................ 26

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Disclosure 304-7 Access and benefit-sharing ................................................................................... 28

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Table 1. Example of template for presenting information for Disclosure 304-1............................. 30

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Table 2. Example of template for presenting information for Disclosure 304-2............................. 31132

Table 3. Example of template for presenting information for Disclosure 304-3............................. 32

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Glossary ............................................................................................................................................... 33

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Bibliography ........................................................................................................................................ 36

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Introduction

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GRI 304: Biodiversity 202X contains disclosures for organizations to report information about theirbiodiversity-related impacts, and how they manage these impacts.

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The Standard is structured as follows:

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Section 1 contains seven disclosures, which provide information about the organization’s
biodiversity-related impacts and how the organization manages these impacts.

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The Glossary contains defined terms with a specific meaning when used in the GRI
Standards. The terms are underlined in the text of the GRI Standards and linked to thedefinitions.

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The Bibliography lists authoritative intergovernmental instruments and additional referencesused in developing this Standard.

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The rest of the Introduction section provides a background on the topic, an overview of the system of
GRI Standards, and further information on using this Standard.

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Background on the topic

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This Standard addresses the topic of biodiversity.

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Biological diversity, referred to as biodiversity, is the variability among living organisms from all
sources, including terrestrial, marine, and other aquatic ecosystems and the ecological complexes ofwhich they are a part; this includes diversity within species, between species, and of ecosystems.
Biodiversity, therefore, includes three components of diversity: genes, species, and ecosystems.

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Biodiversity is an essential characteristic of nature, which consists of environmental assets spread
across the atmosphere, land, sea, and freshwater. An ecosystem is a dynamic complex of plants,
animals, and microorganisms, interacting with each other and their non-living environment.
Ecosystems are environmental assets that support the provision of ecosystem services, which are theflows of benefits from ecosystems to people, such as clean water and air.

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Protecting and enhancing biodiversity ensures genetic diversity, the survival of animal and plant
species, and the health of ecosystems. Biodiversity and ecosystem services contribute directly to
local livelihoods and are essential for poverty reduction and sustainable development.

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The post-2020 Biodiversity Framework of the UN Convention on Biological Diversity will set goals andtargets to halt and reverse biodiversity loss and achieve its vision of living in harmony with nature by
2050. The Sustainable Development Goals, adopted by the UN as part of the 2030 Agenda for
Sustainable Development, also include key targets related to halting biodiversity loss and promoting
the sustainable use of natural resources under Goal 14: Life below water and Goal 15: Life on land.

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An organization can have impacts on biodiversity through its activities, the activities of suppliers andentities downstream of the value chain, or a combination of those. These impacts can extend beyond
the geographic locations where the activities of the organization, suppliers, and downstream entitiesare. Biodiversity-related impacts can also have social and economic consequences, including forindigenous peoples and local communities.

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See references [1], [2], and [5] in the Bibliography.

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System of GRI Standards

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This Standard is part of the GRI Sustainability Reporting Standards (GRI Standards). The GRI
Standards enable an organization to report information about its most significant impacts on theeconomy, environment, and people, including impacts on their human rights, and how it manages
these impacts.

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The GRI Standards are structured as a system of interrelated standards that are organized into threeseries: GRI Universal Standards, GRI Sector Standards, and GRI Topic Standards (see Figure 1 inthis Standard).

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Universal Standards: GRI 1, GRI 2 and GRI 3

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GRI 1: Foundation 2021 specifies the requirements that the organization must comply with to report inaccordance with the GRI Standards. The organization begins using the GRI Standards by consulting
GRI 1.

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GRI 2: General Disclosures 2021 contains disclosures that the organization uses to provide
information about its reporting practices and other organizational details, such as its activities,
governance, and policies.

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GRI 3: Material Topics 2021 provides guidance on how to determine material topics. It also contains
disclosures that the organization uses to report information about its process of determining material
topics, its list of material topics, and how it manages each topic.

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Sector Standards

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The Sector Standards provide information for organizations about their likely material topics. The
organization uses the Sector Standards that apply to its sectors when determining its material topics
and when determining what to report for each material topic.

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Topic Standards

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The Topic Standards contain disclosures that the organization uses to report information about its
impacts in relation to particular topics. The organization uses the Topic Standards according to the listof material topics it has determined using GRI 3.

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Figure 1. GRI Standards: Universal, Sector and Topic Standards

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Using this Standard

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This Standard can be used by any organization – regardless of size, type, sector, geographic location,or reporting experience – to report information about its biodiversity-related impacts. In addition to thisStandard, disclosures that relate to this topic can be found in GRI 303: Water and Effluents 2018, GRI
305: Emissions 2016, GRI 306: Waste 2020, GRI 411: Rights of Indigenous Peoples 2016, and GRI
413: Local Communities 2016.

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An organization reporting in accordance with the GRI Standards is required to report the following
disclosures if it has determined biodiversity to be a material topic:

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Disclosure 3-3 in GRI 3: Material Topics 2021;

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Any disclosures from this Topic Standard that are relevant to the organization’s biodiversityrelated impacts (Disclosure 304-1 through Disclosure 304-7).

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See Requirements 4 and 5 in GRI 1: Foundation 2021.

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Reasons for omission are permitted for these disclosures.

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If the organization cannot comply with a disclosure or with a requirement in a disclosure (e.g.,
because the required information is confidential or subject to legal prohibitions), the organization isrequired to specify the disclosure or the requirement it cannot comply with, and provide a reason foromission together with an explanation in the GRI content index. See Requirement 6 in GRI 1:
Foundation 2021 for more information on reasons for omission.

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If the organization cannot report the required information about an item specified in a disclosure
because the item (e.g., committee, policy, practice, process) does not exist, it can comply with therequirement by reporting this to be the case. The organization can explain the reasons for not having
this item or describe any plans to develop it. The disclosure does not require the organization to
implement the item (e.g., developing a policy), but to report that the item does not exist.

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If the organization intends to publish a standalone sustainability report, it does not need to repeat
information that it has already reported publicly elsewhere, such as on web pages or in its annual
report. In such a case, the organization can report a required disclosure by providing a reference in
the GRI content index as to where this information can be found (e.g., by providing a link to the web
page or citing the page in the annual report where the information has been published).

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Requirements, guidance and defined terms

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The following apply throughout this Standard:

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Requirements are presented in bold font and indicated by the word 'shall'. An organization mustcomply with requirements to report in accordance with the GRI Standards.

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Requirements may be accompanied by guidance.

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Guidance includes background information, explanations, and examples to help the organization
better understand the requirements. The organization is not required to comply with guidance.

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The Standards may also include recommendations. These are cases where a particular course ofaction is encouraged but not required.

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The word ‘should’ indicates a recommendation, and the word ‘can’ indicates a possibility or option.

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Defined terms are underlined in the text of the GRI Standards and linked to their definitions in the
Glossary. The organization is required to apply the definitions in the Glossary.

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Topic disclosures

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Disclosure 304-1 Location of operational sites withthe most significant impacts

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REQUIREMENTS

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The organization shall:

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a. explain how it has determined which of its operational sites and its suppliers’ operationalsites have the most significant impacts on biodiversity;

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b. report the geographic location (name and coordinates) and size in hectares of its
operational sites with the most significant impacts on biodiversity;

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c. report the geographic location (name and country or jurisdiction) of its suppliers’
operational sites with the most significant impacts on biodiversity;

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d. if the sites reported under 304-1-b are in, near, or contain portions of an area of highbiodiversity value, report the name of and distance to these areas and whether these areas
are:

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legally protected areas;

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ii. internationally recognized areas;

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iii. other areas of high biodiversity value that are important to indigenous peoples andlocal communities;

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iv. other areas of importance for biodiversity.

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GUIDANCE

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This disclosure provides information about the operational sites of the organization and its suppliers
that cause or contribute to the most significant actual and potential impacts on biodiversity. It covers
suppliers throughout the organization’s supply chain, including those beyond the first tier.

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If available, the organization can additionally report the information for entities downstream of thevalue chain with the most significant impacts on biodiversity.

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This disclosure does not cover all operational sites that have an impact on biodiversity, only thosewith the most significant impacts. These operational sites are the focus of Disclosures 304-1 to 304-5of this Standard.

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For example, an organization may identify that its most significant impacts on biodiversity are related
to sourcing certain products used to develop its own products and services. In this case, theorganization can report the disclosures in this Standard for the sourced products and explain thisunder 304-1-a.

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For an example of how to present information on requirements in Disclosure 304-1, see Table 1.

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Guidance to 304-1-a

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Requirement 304-1-a enables the organization to explain how it has determined which of its
operational sites and its suppliers' operational sites have the most significant impacts on biodiversity.

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Operational sites cover the areas where activities occur in air, land, and water. They include land,
freshwater, or marine areas owned, leased, or managed by the organization or its suppliers, as well
as areas where the organization or its suppliers can conduct their activities. Examples are a miningsite owned by an organization, an offshore renewable energy site leased by an organization, a fishingground where an organization’s supplier operates, or a transport route used for airfreight. Operationalsites include subsurface infrastructures under the land or seabed surface, such as undergroundmining tunnels, cables, and pipelines.

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The organization should start by identifying all of its operational sites and its suppliers’ operationalsites before determining which of those sites have the most significant impacts on biodiversity. In
some cases, the organization might be unable to identify all operational sites. This could be, forexample, because the organization has diverse or multiple global operations or because its supply
chain comprises many entities. In such cases, the organization may carry out an initial assessment or
scoping exercise to identify general areas (e.g., product lines, suppliers located in specific geographic
locations) where impacts on biodiversity are most likely to be present and significant. Once theorganization has conducted the initial assessment or scoping exercise, it can identify the operationalsites for these general areas and then identify and assess actual and potential impacts on biodiversity
for these operational sites. See section 1 in GRI 3: Material Topics 2021 for more information on how
to do an initial assessment or scoping exercise.

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To assess which sites cause or contribute to the most significant impacts on biodiversity, theorganization should consider the extent to which its activities and its suppliers' activities lead or could
lead to climate change, the introduction of invasive alien species, land and sea use change,
overexploitation of resources, and pollution (direct drivers of biodiversity loss).

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The organization should also consider the area that is or could be affected by its activities and its
suppliers’ activities. The area that is or could be affected, also known as area of influence, is not
limited to the area within an operational site but can extend beyond it. The organization should report
the range it has selected to determine the area that is or could be affected and explain why this range
was selected. For example, an organization’s activities lead to water pollution 50 kilometers from thesource. Therefore, the organization selects a range of 50 kilometers to determine the area that could
be affected by the pollution.

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The organization should also consider the biodiversity value of the area that is or could be affected by
its activities and its suppliers’ activities. The significance of an impact can depend on the context inwhich the impact takes place. For example, an impact on biodiversity can be more significant when it
takes place in an area of high biodiversity value compared to an area without high biodiversity value.

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The assessment of which sites cause or contribute to the most significant impacts on biodiversity canbe based on direct measurements or estimates. For example, to determine the extent to which its
suppliers’ activities lead or could lead to overexploitation of water resources, the organization can use
direct measurements (e.g., volume of water withdrawal measured by its suppliers) or estimates (e.g.,
average sector data about water withdrawal).

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To determine which negative impacts are more likely to be significant and the location of operationalsites where those impacts occur, the organization can use the following:

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Natural Capital Finance Alliance’s ENCORE (Exploring Natural Capital Opportunities, Risks
and Exposure) with global data to assess impacts on species and ecosystems, such as STAR(Species Threat Abatement and Restoration Metric) or the Ecosystem Integrity Index.
Guidance from the Taskforce on Nature-related Financial Disclosures (TNFD).
Forthcoming guidance from the Science Based Targets Network (SBTN) and WWF Risk
Biodiversity Filter.

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The organization should report the methodologies, assumptions, and estimates used to identify whichof its operational sites and suppliers' operational sites have the most significant impacts on
biodiversity.

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The organization is required to describe the process it has followed to determine its material topics
under Disclosure 3-1 in GRI 3: Material Topics 2021. The information reported under 304-1-acomplements the information reported under Disclosure 3-1.

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See references [25] and [27] in the Bibliography.

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Guidance to 304-1-b

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The organization is not required to provide the geographic location of all its operational sites, only thegeographic location of those that have or could have the most significant impacts on biodiversity.

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The organization is required to provide the coordinates when reporting the geographic location of its
operational sites. Where possible, the organization should also report polygon outlines or maps. A

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polygon is a geographic feature defined by a series of grid references, points, or vertices connected toform an enclosed shape.

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It may not be possible to provide the coordinates for the operational sites of transport and fishingactivities. In these cases, for transport activities, the organization should report the coordinates of thelocations of departure and arrival and the transport routes. For fishing activities, the organization
should report FAO major fishing areas and subareas.

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Operational sites include those where future operations have been announced and those no longer
active.

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See reference [15] in the Bibliography.

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Guidance to 304-1-c

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The organization is not required to provide the geographic location of all operational sites of its
suppliers, only the geographic location of those that have or could have the most significant impacts
on biodiversity.

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The organization is required to provide the country or jurisdiction when reporting the geographic
location of its suppliers’ operational sites (e.g., a manufacturing site or a plantation). Where possible,
the organization should also report the location within the country or jurisdiction (e.g., state, city,
Exclusive Economic Zone) or a precise location, such as the coordinates, polygon outlines, or mapsof its suppliers' operations. For transport activities, the organization should report departure andarrival locations and transport routes. For fishing activities, the organization should report FAO major
fishing areas and subareas.

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For each product with significant impacts on biodiversity, the organization should report thepercentage of sourced volume for which origins are unknown. This information provides anunderstanding of the proportion of sourced volume for which biodiversity-related impacts are unknown
to the organization.

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See reference [15] in the Bibliography.

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Guidance to 304-1-d

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This requirement covers the operational sites of the organization. The organization should also report
this information for its suppliers’ operational sites under 304-1-b, if available.

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The organization is required to report the distance only in cases where the sites are near an area ofhigh biodiversity value. An operational site is near an area of high biodiversity value when the area
falls within the range that was selected to determine the area that is or could be affected by theorganization’s activities. It does not need to report the distance if a site is in or contains portions ofareas of high biodiversity value.

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The organization should report the size of the high biodiversity value area within its operational sites.
The organization can provide polygon outlines or maps to report if its operational sites in 304-1-a arein, near, or contain portions of areas of high biodiversity value.

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If none of the organization’s operational sites reported under 304-1-b are in, near, or contain portionsof an area of high biodiversity value, a brief statement of this fact is sufficient to comply with therequirement.

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Guidance to 304-1-d-i

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Legally protected areas are designated by governments to achieve specific conservation objectives.
Legally protected areas are established as part of the national protected areas system, or to fulfil acommitment to a regional or international convention or agreement which the government has signed.
Such areas include terrestrial, freshwater, and marine protected areas.

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To identify these legally protected areas, the organization can consult the World Database on
Protected Areas, included in the Integrated Biodiversity Assessment Tool (IBAT).

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Guidance to 304-1-d-ii

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Internationally recognized areas consist of:382•

Key Biodiversity Areas;

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UNESCO Man and the Biosphere Reserves;

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UNESCO Natural World Heritage Sites; and

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wetlands designated under the Ramsar Convention on Wetlands of International Importance(Ramsar sites).

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To identify these internationally recognized areas, the organization can consult the World Database of
Key Biodiversity Areas and the World Database on Protected Areas (including UNESCO Man and the
Biosphere Reserves, UNESCO Natural World Heritage Sites, and Ramsar sites), included in the
Integrated Biodiversity Assessment Tool (IBAT).

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When reporting the Key Biodiversity Areas, the organization can specify for each area whether it is an
Alliance for Zero Extinction (AZE) site.

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See references [16], [17], [18], [19], and [22] in the Bibliography.

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Guidance to 304-1-d-iii

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405

Biological diversity underpins the provision of ecosystem services essential for local livelihoods,
cultural diversity, and social well-being. Therefore, an organization’s impacts on biodiversity can leadto impacts on the ecosystem services that indigenous peoples and local communities depend on for
their livelihoods. Examples of areas of importance to indigenous peoples and local communities
include Indigenous Peoples’ and Community Conserved Territories and Areas (ICCA), areas undercustomary management by indigenous peoples and local communities or subject to customary
harvest, and areas identified through the organization’s environmental and social impact
assessments. ICCAs can be identified using the ICCA Registry and are defined as ‘natural and/or
modified ecosystems containing significant biodiversity values, ecological services and culturalvalues, voluntarily conserved by indigenous peoples and local communities, both sedentary andmobile, through customary laws or other effective means’.

406

See references [4] and [7] in the Bibliography.

407

Guidance to 304-1-d-iv

408
409
410
411

Other areas of importance include those recognized for their biodiversity value at the site or regional
level not reported under 304-1d-i to 304-1-d-iii. Examples of such areas include biodiversity hotspots,
critical habitats1, High Carbon Stock (HCS) and High Conservation Value (HCV) sites, Other Effectivearea-based Conservation Measures (OECMs), and wildlife corridors.

412

See reference [18] in the Bibliography.

1 International Finance Corporation Performance Standard 6: Biodiversity Conservation and Sustainable

Management of Living Natural Resources (2012) defines critical habitats as ‘areas with high biodiversity value,
including (i) habitat of significant importance to Critically Endangered and/or Endangered species; (ii) habitat ofsignificant importance to endemic and/or restricted-range species; (iii) habitat supporting globally significant
concentrations of migratory species and/or congregatory species; (iv) highly threatened and/or uniqueecosystems; and/or (v) areas associated with key evolutionary processes.

Page 12 of 37

413

Disclosure 304-2 Direct drivers of biodiversity loss

414

REQUIREMENTS

415

The organization shall:

416
417

a. report its Scope 1, Scope 2, and Scope 3 greenhouse gas emissions using GRI 305:
Emissions 2016;

418
419
420

b. for each site reported under 304-1-b and 304-1-c where invasive alien species are a directdriver of biodiversity loss, describe the activities that are responsible for the introductionof invasive alien species;

421
422

c. for each site reported under 304-1-b and 304-1-c where land and sea use change is a directdriver of biodiversity loss:

423

i.

describe the activities responsible for land and sea use change;

424
425

ii. report the size in hectares and the type of natural ecosystem converted since the cutoff date or reference date;

426
427

d. for each site reported under 304-1-b and 304-1-c where overexploitation of resources is adirect driver of biodiversity loss:

428

i.

429
430

ii. report the type and quantity of resources used and the species extinction risk, whereapplicable;

431
432

describe the activities responsible for the overexploitation of resources;

e. for each site reported under 304-1-b and 304-1-c where pollution is a direct driver of
biodiversity loss:

433

i.

describe the activities responsible for pollution;434

ii. report the type and quantity of pollutants generated;

435
436

f.

describe the processes used to monitor the direct drivers of biodiversity loss throughout
its activities and supply chain;

437
438

g. report contextual information necessary to understand how the data has been compiled,such as any standards, methodologies, and assumptions used.

439

GUIDANCE

440
441
442
443

This disclosure provides an understanding of the activities responsible for the direct drivers of
biodiversity loss. It covers the activities of the organization and its suppliers on the sites reported
under Disclosure 304-1. If the information is available, the organization should additionally describe
the activities of downstream entities that are responsible for the direct drivers of biodiversity loss.

444
445
446
447

Through its activities, an organization can use natural resources as an input to its production
processes (e.g., sand used in a construction project) or produce non-product outputs (e.g., pollutants
or greenhouse gas emissions). These activities, responsible for the direct drivers of biodiversity loss,
cause, contribute, or are directly linked to negative impacts on biodiversity.

448
449
450

Sometimes referred to as ‘pressures’ or ‘impact drivers’, direct drivers of biodiversity loss
unequivocally influence biodiversity and ecosystem processes. Direct drivers of biodiversity loss canbe natural and anthropogenic (i.e., caused by human activities).

451
452
453
454
455
456

The direct drivers of biodiversity loss considered in this disclosure reflect those identified through the
IPBES global assessment, including climate change, invasive alien species, land and sea usechange, overexploitation of resources, and pollution. These direct drivers can also lead to thefragmentation and degradation of ecosystems, which threaten biodiversity. The organization can use
the IUCN Threat Classification Scheme to identify the direct drivers of biodiversity loss responsible forits most significant impacts.

457
458
459

Information on the activities responsible for the direct drivers of biodiversity loss should inform
decisions on how the mitigation hierarchy could be applied to manage biodiversity-related impacts.
See Disclosure 304-5 for more information on the mitigation hierarchy. The organization’s actions toPage 13 of 37

460
461

mitigate direct drivers of biodiversity loss and actions resulting in biodiversity gains (e.g., when theorganization implements restoration) are reported under 304-5-a.

462
463
464

Under 304-2-b, 304-2-c-i, 304-2-d-i, and 304-2-e-i, the organization is required to describe theactivities responsible for the introduction of invasive alien species, land and sea use change,
overexploitation of resources, and pollution.

465
466
467

These requirements include activities of the organization and its suppliers that lead or could lead tocumulative impacts (e.g., the organization’s water withdrawal, combined with the water withdrawal ofanother organization, has a significant impact on biodiversity).

468
469
470
471
472
473
474
475

They also include activities of third parties that result from the presence of an organization’s activities
or its suppliers’ activities and that lead or could lead to significant impacts on biodiversity. For
example, people moving to the area where a new project site will open (e.g., migrants cut down aforest to make space for their houses and crops) or people using new transport routes associated withthe development of a new project site (e.g., people hunt for bushmeat in areas that were notaccessible before). It is required to describe the activities of third parties that are responsible for these
direct drivers of biodiversity loss. It is not required to report the information under 304-2-c-ii, 304-2-dii, and 304-2-e-ii resulting from the activities of third parties.

476
477
478
479
480
481
482

For invasive alien species, land and sea use change, overexploitation of resources, and pollution, theorganization needs to report the information only for the direct drivers of biodiversity loss relevant to
the operational sites reported under 304-1-b and 304-1-c. These direct drivers of biodiversity loss canvary by operational site. For example, in site A, the drivers of biodiversity loss are invasive alien
species and pollution, and in site B, the driver of biodiversity loss is land and sea use change. In thiscase, the organization only needs to report the information on invasive alien species and pollution forsite A, and on land and sea use change for site B.

483
484
485

If the location reported under 304-1-c is a country, jurisdiction, or location within the country or
jurisdiction, the organization can use secondary or modeled data to report information on the directdrivers of biodiversity loss and explain this under 304-2-g.

486
487
488

If the precise location of its suppliers’ operational sites is known (i.e., coordinates, maps, or polygon
outlines), the organization should use primary data to report information on the direct drivers of
biodiversity loss and explain this under 304-2-g.

489

For an example of how to present information on requirements in Disclosure 304-2, see Table 2.

490

See references [10], [21], [28], and [30] in the Bibliography.

491

Guidance to 304-2-a

492
493
494
495

Climate change alters the distribution, functioning, and interactions of species, reducing the capacityof ecosystems to adapt. Climate change leads to changes in temperatures and weather patterns that,in turn, affect species' habitats, food supply, migration patterns, and breeding seasons, among others.
Sea level rise and ocean acidification also negatively affect marine organisms.

496
497
498
499
500

The greenhouse gas emissions emitted on a particular operational site do not lead to biodiversity loss
in the direct vicinity of this site, but they contribute to the global change in climate that drives
biodiversity loss. Therefore, an organization’s greenhouse gas emissions, together with greenhousegas emissions from other organizations, contribute to climate change as a direct driver of biodiversity
loss.

501
502
503

If the organization has reported its greenhouse gas emissions under Disclosures 305-1, 305-2, and305-3 in GRI 305: Emissions 2016, it can provide a reference to this information under 304-2-a anddoes not need to repeat the information.

504

Guidance to 304-2-b

505
506
507
508
509
510
511

Invasive alien species are animals, fungi and plants that are introduced, accidentally or deliberately,
to an area outside of their natural geographical range and cause serious negative impacts on local
biodiversity. Invasive alien species negatively affect biodiversity as they often lack predators in their
new environment, allowing them to spread and become more abundant. They can carry diseases,
outcompete or prey on native species, alter food chains, and change ecosystems by, for example,
altering soil composition or creating habitats that are vulnerable to wildfires. These impacts can leadto local or global extinctions of species.

Page 14 of 37

512This disclosure does not cover the introduction of non-invasive alien species.

513
514
515
516
517

Activities responsible for introducing invasive alien species include those that have or could haveintroduced such species, such as transport and discharge of ballast waters. The organization shouldreport the type of species when describing the activities responsible for introducing invasive alien
species. For example, an organization transports ornamental plants to new areas, thereby introducing
an invasive alien insect species.

518

See reference [20] in the Bibliography.

519

Guidance to 304-2-c

520
521
522

Land and sea use change refers to a change in the use or management of land and seascapes byhumans, which may lead to a change in land cover. In this disclosure, natural ecosystem conversion
is used to report land and sea use change.

523
524
525
526
527
528

The organization should also report the information required under 304-2-c-i and 304-2-c-ii formodified ecosystems that are converted by its activities or the activities of its suppliers. Modified
ecosystems are areas that may contain a large proportion of plant and/or animal species of nonnative origin, and/or where human activity has substantially modified an area’s primary ecological
functions and species composition. For example, an organization may acquire land occupied byagroforestry practices and convert it to urban settlements.

529

See reference [18] in the Bibliography.

530

Guidance to 304-2-c-ii

531
532
533
534
535

The organization should report which ecosystem classification it uses to identify the types of
ecosystems. The organization can report ecosystem types using the biomes or ecosystem functionalgroups in the IUCN Global Ecosystem Typology. Alternatively, the organization can report according
to a national classification or register. The organization can also report the type of ecosystem afterconversion.

536
537

Ecosystem size refers to the size of the ecosystems within the operational sites, reported under 3041-b and 304-1-c, which have been converted.

538
539
540
541
542
543
544

The Accountability Framework defines a cut-off date as ‘the date after which deforestation orconversion renders a given area or production unit non-compliant with no-deforestation or noconversion commitments, respectively’. Cut-off dates may differ between commodities (e.g., palm oil,rubber, and soy) and regions. Appropriate cut-off dates can be selected based on sector-wide or
regional cut-off dates or those specified in certification programs and legislation, or based on theavailability of monitoring data. More guidance on identifying appropriate cut-off dates can be found in
Accountability Framework Operational Guidance on Cut-off Dates.

545
546

The organization should report the selected cut-off or reference dates and explain why it hasdetermined them as appropriate.

547
548
549
550
551
552
553
554

If the organization cannot report the size of the natural ecosystem converted in its supply chain, it canreport the percentage of volume sourced from suppliers determined to be conversion- ordeforestation-free by product and describe the assessment methods used. Deforestation is a form ofnatural ecosystem conversion. Assessment methods can include monitoring, certification, sourcing
from low-risk jurisdictions with no or negligible recent conversion, or sourcing from verified suppliers.
To be deemed conversion- or deforestation-free, products must be assessed as not causing orcontributing to natural ecosystem conversion, including deforestation, after an appropriate cut-off
date.

555

See references [7] and [23] in the Bibliography.

556

Guidance to 304-2-d

557
558
559
560

Overexploitation of natural resources is associated with increased extraction rates of natural
resources beyond sustainable levels. Resources that an organization may overexploit include wild
animal and plant species and other natural resources such as water. The organization is only required
to report on the resources that lead to its most significant impacts on biodiversity.

Page 15 of 37

561

Guidance to 304-2-d-ii

562
563

The quantity of wild animal and plant species includes those harvested, sourced, and incidentallytaken.

564
565
566
567
568
569

To report on the extinction risk of a species, the organization can use information from the IUCN Red
List of Threatened Species. The organization can also report whether the wild animal or plant species
is listed in one of the CITES Appendices. Species listed as vulnerable, endangered, or criticallyendangered under the IUCN Red List of Threatened Species or listed in the CITES appendices, aremore likely to be overexploited. For example, an organization sourced two metric tons of Southern
Bluefin Tuna, an endangered species, and one metric ton of Blacktip Shark, a vulnerable species.

570
571
572
573

When the organization overexploits water, it should report the total volume of water withdrawal andwater consumption in megaliters from areas with water stress. The organization should refer toDisclosures 303-3 Water withdrawal and 303-5 Water consumption in GRI 303: Water and Effluents20182 to report the quantity of water used at each operational site in areas with water stress.

574

See references [11] and [21] in the Bibliography.

575

Guidance to 304-2-e-i

576
577

Pollutants to air, water, and soil include substances (e.g., heavy metals, pesticides, solid waste) andother pollutants such as heat, light, noise, or vibrations.

578
579
580
581
582
583

The organization can provide a high-level description of how the pollution generated by its activities orby the activities of its suppliers leads to or can lead to an impact on biodiversity. For example, theorganization can describe how the release of nitrogen fertilizers to surface water contributes toeutrophication in nearby waterbodies, resulting in the decline in local fish populations. It can also
describe how noise or light created by an activity can disrupt wildlife species’ breeding or migration
behavior, resulting in a decline in the size of the location population.

584

Guidance to 304-2-e-ii

585
586
587
588
589
590
591
592
593

The organization is only required to report the type and quantity of pollutants that lead to the mostsignificant impacts on biodiversity. The organization should use information from Disclosure 305-7
Nitrogen oxides (NOx), sulfur oxides (SOx), and other significant air emissions in GRI 305: Emissions
2016 to report its non-GHG air emissions. The organization should use information from Disclosure303-4 Water discharge in GRI 303: Water and Effluents 2018, Disclosure 306-3 Significant spills in
GRI 306: Effluents and Waste 2016, and Disclosure 306-5 Waste directed to disposal in GRI 306:
Waste 2020 to report on its soil and water pollution3. For noise pollution, the organization shouldreport the decibels above the normal level and the duration of noise produced. For light pollution, theorganization should report the lumens and duration of light produced.

594
595
596

The organization can use additional authoritative sources of information, for example, the TNFD
Framework, to report on its pollution levels in cases where other GRI Topic Standards do not cover
this.

597

See reference [28] in the Bibliography.

598

Guidance to 304-2-g

599
600

The organization is required to explain which methodologies it has used to measure the impacts of its
activities and its suppliers. Examples of methodologies include field surveys, supplier surveys, and life

2 The disclosures from other Topic Standards do not require information to be reported by operational site; theyrequire aggregate information. The organization can refer to the original data sources used to compile theinformation for these disclosures to obtain the data by operational site. The disclosures from other Topic
Standards do not require information to be reported for suppliers. However, the organization can use these
disclosures to report this information for suppliers' operational sites.
3 The disclosures from other Topic Standards do not require information to be reported by operational site; theyrequire aggregate information. The organization can refer to the original data sources used to compile theinformation for these disclosures to obtain the data by operational site. The disclosures from other Topic
Standards do not require information to be reported for suppliers. However, the organization can use these
disclosures to report this information for suppliers' operational sites.

Page 16 of 37

601
602
603
604
605

cycle assessments. Methodologies to collect data on the direct drivers of biodiversity loss rely on
primary, secondary, or modeled data. Primary data is collected on-site through direct approaches
such as field surveys. Secondary data has already been collected and can be used by theorganization. The organization can use modeled data to estimate the direct drivers of biodiversity loss
in the absence of primary or secondary data.

Page 17 of 37

606

Disclosure 304-3 State of biodiversity

607

REQUIREMENTS

608

The organization shall:

609
610

a. for each site reported under 304-1-b, report the following information on affected or
potentially affected ecosystems for the baseline and the current reporting period:

611

i.

612

ii. the ecosystem size in hectares;613

iii. the ecosystem condition;

614
615

the ecosystem types;

b. for each site reported under 304-1-b, report the following information on affected or
potentially affected species for the baseline and the current reporting period:

616

i.

the species name;

617

ii. the species extinction risk;

618
619

c. for each site reported under 304-1-c, report the condition of ecosystems that are or could
be affected by its suppliers’ activities;

620
621

d. report contextual information necessary to understand how the data has been compiled,such as any standards, methodologies, and assumptions used.

622

GUIDANCE

623
624
625
626

This disclosure provides information about the changes in the state of biodiversity resulting from theorganization’s activities and the activities of its suppliers. The state of biodiversity is the holistic quality
and condition of the components of biodiversity (genes, species, and ecosystems). Reporting onchanges in genetic diversity is not included in the scope of this disclosure.

627
628
629
630
631

The organization can organize the information on the state of biodiversity into structured biodiversity
accounts by providing statements of position and performance according to the Biological Diversity
Protocol, if the information is available. Biodiversity accounts enable more accurate monitoring ofgains and losses of biodiversity over time. They are also useful in tracking progress against targets tohalt and reverse the loss of biodiversity.

632

For an example of how to present information on requirements in Disclosure 304-3, see Table 3.

633

See reference [13] in the Bibliography.

634

Guidance to 304-3-a

635
636
637

This requirement provides information on the type, size, and condition of ecosystems affected andpotentially affected by all direct drivers of biodiversity loss reported under 304-2. Information on thetype and size of ecosystems affected by land and sea use change is reported under 304-2-c.

638
639
640
641
642
643
644

When reporting information on the ecosystem affected and potentially affected, the organizationneeds to consider the area affected by its activities within the sites reported under 304-1-b andbeyond, if relevant. Ecosystems affected or potentially affected include natural ecosystems andecosystems modified by human activities. The state of the overall ecosystem within which the sites
are located is not required for reporting. For example, an organization owns a soy plantation in the
Amazon. The organization is required to report information on the type, size, and condition of theecosystems in the area affected by the organization, not the entire Amazon.

645
646
647
648

By providing baseline information and information for the current reporting period, the organization
reports on the changes in the state of biodiversity to provide insights into the overall health of theecosystem it affects or potentially affects over time. This information can help inform theorganization’s strategy to manage its impacts on biodiversity.

649

Guidance to 304-3-a-i

650
651

The organization should report which ecosystem classification it uses to identify the types of
ecosystems. The organization can report ecosystem types using the biomes or ecosystem functional

Page 18 of 37

652
653

groups in the IUCN Global Ecosystem Typology. Alternatively, the organization can report according
to a national classification or register.

654

See reference [23] in the Bibliography.

655

Guidance to 304-3-a-ii

656
657
658

Ecosystem size, also referred to as ecosystem extent, refers to the spatial area of the ecosystemaffected or potentially affected by the organization’s activities through its contribution to the directdrivers of biodiversity loss reported under 304-2.

659

Guidance to 304-3-a-iii

660
661
662
663

Ecosystem condition can provide information on the ecological integrity and intactness of theecosystem and its capacity to supply ecosystem services now and in the future. It is measured by thefollowing characteristics: ecosystem composition, function, type of landscape or seascape, physicalcondition, and structure.

664
665
666
667
668

The organization should identify the most relevant ecosystem characteristics. It should use indicatorsthat reflect the direct drivers of biodiversity loss. For example, if an organization affects the conditionof a forest by harvesting timber, it can report the number of trees per hectare, the age of trees, andthe percentage of trees with diseases as key indicators to determine the overall condition of theforest.

669
670
671

Examples of indicators to measure ecosystem condition are the Biodiversity Intactness Index,
Ecosystem Integrity Index, Mean Species Abundance, and Potentially Disappeared Fraction. The
organization should explain how it has measured the ecosystem condition under 304-3-d.

672
673
674
675
676

The organization can also report by using quality-adjusted hectares, a standard measurement of
ecosystem condition. Quality-adjusted hectares measurement combines the ecosystem size with ameasure of the ecosystem condition compared to a reference state. It can be used to develop
biodiversity accounts. The organization can use the Biological Diversity Protocol and UNSEEA’s
Ecosystem Accounting when using quality-adjusted hectares.

677
678
679
680
681
682

The baseline is used to measure the changes in the state of biodiversity over time. The organization
should report how it has determined the baseline under 304-3-d. For instance, the baseline may be apristine or intact ecosystem, the use of sectorial or location cut-off dates, the start of an organization’s
activities, or the organization’s commitments, including no net loss or net gain of biodiversity. The
organization can refer to the cut-off dates for land and sea use change reported under 304-2-c. The
organization should report the year corresponding to the baseline.

683

See references [4], [28], and [32] in the Bibliography.

684

Guidance to 304-3-b

685
686

In addition to ecosystem size and condition, information on species affected or that could be affectedby the organization provides a better understanding of its impacts on biodiversity.

687
688
689

The organization is not required to report information for all species. The organization is only required
to report information on species identified as affected or potentially affected that meet any of thefollowing criteria:690•

are sensitive to the organization’s activities and the drivers of biodiversity loss;

691•

are legally protected by local, national, or international laws and conventions;

692
693

•

are a priority species at the local, national, or international level (e.g., a species listed as
threatened on the international IUCN Red List);

694•

have a critical role in the ecosystem;

695
696

•

have a significant cultural or economic role for stakeholders (e.g., hunting, harvesting,pollination).

697
698
699

The organization can report additional information on species, such as population size. Population
size can be measured by the number of mature individuals or the number of breeding pairs. When the
population size is unavailable, the organization can report the habitat size or population trends.

Page 19 of 37

700

Guidance to 304-3-b-ii

701
702
703
704
705
706

The international, regional, and national IUCN Red Lists are key tools in determining the species
extinction risk. The IUCN Red Lists classify species extinction risk as critically endangered,endangered, vulnerable, near threatened, and least concerned. The extinction risk of a species may
differ at the global, regional, and national levels. For example, a species is listed as threatened on anational level while being listed as least concerned at the global level. The organization must report all
extinction risks if a species is on the global, regional, or national IUCN Red Lists.

707

See reference [21] in the Bibliography.

708

Guidance to 304-3-c

709
710
711
712
713

For each location reported under 304-1-c, the organization should report the information on
ecosystem condition specified under requirement 304-3-a-iii. If the location reported under 304-1-c isa country, jurisdiction, or location within the country or jurisdiction, the organization can use
secondary or modeled data to report information on ecosystem condition and explain this under 3043-d.

714
715
716
717

If the precise location of its suppliers’ operational sites is known (i.e., coordinates, maps, or polygon
outlines), the organization should report the information on ecosystem type, size, and condition
specified under requirement 304-3-a. The organization should also report information on speciesname and extinction risk as specified under requirement 304-3-b.

718

Guidance to 304-3-d

719
720
721
722
723
724
725

The organization is required to explain which methodologies it has used to measure the impacts of its
activities and its suppliers. Examples of methodologies include field surveys, supplier surveys, and life
cycle assessments. Methodologies to collect data on the state of biodiversity rely on primary,secondary, or modeled data. Primary data is collected on-site through direct approaches such as fieldsurveys. Secondary data has already been collected and can be used by the organization. The
organization can use modeled data to estimate the state of biodiversity in the absence of primary or
secondary data.

726
727
728
729
730
731

Modeled data are issued from models that quantify how the magnitude of different direct drivers of
biodiversity loss affects the state of biodiversity. These models use globally collected data, and theresults are applied locally to estimate how the organization’s activities can cause or contribute tochanges in ecosystem condition. They include geospatial data layers that can be used to identify
changes in the size and condition of ecosystems, such as the level of habitat fragmentation andconnectivity, or identify species that may be present at specific sites.

Page 20 of 37

732

Disclosure 304-4 Ecosystem services

733

REQUIREMENTS734

The organization shall:

735
736

a. for each site reported under 304-1-b, list the significant ecosystem services andbeneficiaries that are or could be affected by the organization’s activities;

737
738

b. for each site reported under 304-1-c, list the significant ecosystem services andbeneficiaries that are or could be affected by the suppliers’ activities;739

c. explain how the ecosystem services and beneficiaries are or could be affected.

740

GUIDANCE

741
742
743
744
745
746
747
748
749
750

Ecosystem services are commonly divided into the following categories: provisioning services,
regulating and maintenance services, and cultural services. Provisioning services contribute tobenefits extracted or harvested from ecosystems (e.g., timber in a forest, freshwater from a river, or
food from agroecosystems). Regulating and maintenance services result from the ability of
ecosystems to regulate biological processes and influence climate, hydrological, and biochemical
cycles, thereby maintaining environmental conditions beneficial to people (e.g., forests preventing soil
erosion). Cultural services are the non-material benefits people (beneficiaries) obtain fromecosystems through spiritual enrichment, cognitive development, reflection, recreation, and aesthetic
experiences (e.g., the recreational value of a forest or a cultural heritage landscape that is ofimportance for a local community).

751
752
753
754
755
756
757
758

Biodiversity plays an important role in maintaining the quality, quantity, and resilience of ecosystems
and it provides ecosystem services that beneficiaries rely upon now and in the future. The diversity ofgenes, species, and ecosystems provides a greater range of ecosystem service options. In addition,
the presence of a diversity of organisms (e.g., multiple species or the genetic diversity within them)
performing a given function within an ecosystem boosts the ability of that ecosystem to maintainfunctionality and supply ecosystem services. A change in the state of biodiversity can lead to changes
in ecosystem services. This, in turn, can have an impact on the beneficiaries of these ecosystemservices.

759
760
761
762
763

This disclosure gives insight into the ecosystem services and beneficiaries that are or could be
affected by the organization and its suppliers, resulting from the impacts on biodiversity reported
under Disclosure 304-3. It does not cover ecosystem services that the organization or its suppliers
depend on that are or could be affected by others, such as governments, local communities, or otherorganizations.

764
765

The organization can use the Natural Capital Finance Alliance’s ENCORE and TNFD guidance, whichdraws on the United Nations’ SEEA Ecosystem Accounting, to identify ecosystem services.

766
767
768
769

ENCORE lists the ecosystem services by sector and indicates their importance to the sector. SEEA
Ecosystem Accounting lists ecosystem services in Table 6.3: Reference list of selected ecosystemservices. It also lists ecosystem services in Annex 6.1: Initial logic chains for selected ecosystemservices and links them to common ecosystem types and main beneficiaries.

770

See references [4], [24], [25], and [28] in the Bibliography.

771

Guidance to 304-4-a and 304-4-b

772
773
774
775
776
777

An organization’s activities and the activities of its suppliers can have negative or positive impacts on
the provision of ecosystem services resulting from their impacts on biodiversity. A negative impact
can lead to a decrease in the quantity, quality, and resilience of the services provided by theseecosystems. Conversely, a positive impact on ecosystems can lead to an increase in the quantity,
quality, and resilience of the services they provide. This can have an impact on the beneficiaries ofthese ecosystem services.

778
779
780
781

Requirements 304-4-a and 304-4-b entail listing the ecosystem services affected or that could be
affected by the organization and its suppliers, respectively, and the beneficiaries of these ecosystemservices. Beneficiaries can include indigenous peoples, local communities, and other organizations. It
can also include the organization and its suppliers.

Page 21 of 37

782
783

If the information is available, the organization should also list the ecosystem services and theirbeneficiaries, which are affected or could be affected by the activities of its downstream entities.

784
785
786
787
788
789

The organization is not required to list all ecosystem services that are affected or could be affected by
its activities and its suppliers’ activities, only those that are significant. It is up to the organization todetermine which ecosystem services it considers significant to report under 304-4-a and 304-4-b. The
organization should explain how it has determined which ecosystem services are significant. See
Table 13 in the TNFD framework beta v0.2 for more information on identifying significant ecosystemservices.

790
791
792
793

For example, a community of indigenous peoples depends on pollination services to fertilize theircrops. A decline in the number of bees caused by the organization’s activities can lead to a decreasein pollination services. If the crops are not properly pollinated, they may not bear fruit. This ecosystemservice is significant for the community of indigenous peoples as it sustains their livelihoods.

794

See reference [28] in the Bibliography.

795

Guidance to 304-4-c

796
797

Requirement 304-4-c entails explaining how the ecosystem services reported under 304-4-a and 3044-b are affected or could be affected by the organization and its suppliers.

798
799
800
801
802
803
804
805

The organization can explain whether the ecosystem services have decreased or increased. The
organization can also explain how its activities, or the activities of its suppliers, lead to a change inecosystem services and what is the impact of that change on the beneficiaries. For example, theorganization can explain that cutting trees in the forest has resulted in a decrease in food provisioning
services, which has a negative impact on the local community that needs to find an alternate foodsource. In another example, the organization can explain that switching to agroforestry has resulted in
an increase in soil erosion control services, which has a positive impact on the local community thatwill face fewer risks from flooding.

Page 22 of 37

807

Disclosure 304-5 Management of biodiversity-related
impacts

808

REQUIREMENTS

809

The organization shall:

810
811

a. describe actions taken to manage the direct drivers of biodiversity loss reported under
Disclosure 304-2 using the mitigation hierarchy, including:

806

812

i.

actions to avoid negative impacts;

813

ii. actions to minimize negative impacts;814

iii. actions to restore ecosystems;

815

iv. actions to offset residual negative impacts;

816

v. transformative actions, including additional conservation actions;

817
818

b. report the percentage of sites reported under 304-1-b with management plans that
describe how the actions taken are implemented;

819
820

c. report whether and how it enhances synergies and reduces trade-offs between actions
taken to manage its biodiversity impacts and its climate change impacts;

821
822

d. report contextual information necessary to understand how the data has been compiled,such as any standards, methodologies, and assumptions used.

823

GUIDANCE

824
825
826

This disclosure provides information on the actions taken to manage the organization’s direct driversof biodiversity loss and its impacts on the state of biodiversity and ecosystem services reported under
Disclosures 304-3 and 304-4.

827
828
829
830
831
832
833
834
835

The mitigation hierarchy is a tool for managing an organization’s impacts related to biodiversity. It
consists of a hierarchy of steps, including avoidance, minimization, restoration, and offset. An
organization should prioritize actions to avoid negative impacts and minimize those impacts when
avoidance is not possible. Restoration measures should be implemented when negative impacts
cannot be avoided or minimized. Offsetting measures may also be applied to residual negative
impacts only after all other measures have been applied. Building on the mitigation hierarchy, the
SBTN’s Action Framework covers actions to avoid potential negative impacts, reduce actual negative
impacts, regenerate and restore ecosystems, and transform the socio-economic systems in whichorganizations are embedded.

836

See references [8], [18], and [26] in the Bibliography.

837

Guidance to 304-5-a

838
839
840
841

This requirement covers actions to manage impacts from the organization’s own activities and its
suppliers. It also covers actions taken to manage impacts at an operational site, other specificgeographic locations, and at the organizational level (e.g., a ban on sourcing a certain product acrossthe entire organization).

842
843
844
845
846
847
848

The organization should describe the traceability mechanisms it uses to source products fromecosystems managed to maintain or enhance biodiversity and avoid natural ecosystem conversion
and overexploitation of resources. The organization should describe actions taken to improve
traceability and explain whether it sources products certified by a third party. Third-party certification
can provide assurance that the products sourced adhere to sustainable management practices. The
organization should explain how these certification schemes help manage impacts on biodiversity, as
they use different criteria related to biodiversity conservation.

849
850
851

The organization should also describe how it works with its suppliers to manage their negative
impacts on biodiversity. Where applicable, the organization should also describe actions taken to
ensure marine resources' conservation and sustainable use in areas beyond national jurisdictions.

Page 23 of 37

852
853
854
855
856
857
858
859

The organization should also describe how it works with other organizations and stakeholders tomanage their impacts, including their cumulative impacts and impacts caused by third parties that
result from the presence of an organization’s activities or its suppliers’ activities. For example, people
moving to the area where a new project site will open (e.g., migrants cut down a forest to make space
for their houses and crops) or people using new transport routes associated with the development of
a new project site (e.g., people hunt for bushmeat in areas that were not accessible before). In suchcases, an organization can describe, for example, how it works with the government to limit the use oftransport routes by third parties.

860

Guidance to 304-5-a-i

861
862
863
864
865
866

Avoidance measures are taken to anticipate and prevent negative impacts on biodiversity before
actions or decisions are taken that could lead to such impacts. This includes canceling activities thatgenerate irremediable biodiversity losses where there is no viable lower-impact alternative, such asalternative geographic locations, technologies, or time periods. For example, an organization may
decide against expanding its operational site to avoid negative impacts on the breeding grounds ofthreatened species adjacent to the site.

867
868

Avoidance is often the easiest, most effective way of preventing potential negative impacts andshould therefore be prioritized ahead of other steps of the mitigation hierarchy.

869
870
871

The organization can explain if it avoids activities in or near no-go areas, which include protectedareas, Key Biodiversity Areas, or Indigenous Peoples' and Community Conserved Territories andAreas.

872

See reference [12] in the Bibliography.

873

Guidance to 304-5-a-ii

874
875

Actions taken to minimize negative impacts on biodiversity aim to reduce the duration, intensity, andextent of impacts that cannot be completely avoided to the extent possible.

876
877
878
879
880

If the organization's or its suppliers' activities lead to ecosystem fragmentation, the organization
should report actions taken to minimize fragmentation, such as designing biological corridors or
implementing other measures to improve connectivity between ecosystems or species. Other
examples of actions taken to minimize biodiversity-related impacts are the adoption of biodiversityfriendly land management practices and actions to eradicate invasive alien species.

881

See references [9] and [18] in the Bibliography.

882

Guidance to 304-5-a-iii

883
884
885
886

Restoration actions occur within the area affected by the organization’s activities or the activities of its
suppliers to rehabilitate degraded ecosystems and restore converted ecosystems when negative
impacts cannot be avoided or minimized. The UN Decade on Ecosystem Restoration has identified
principles that detail best practices for restoring degraded land, freshwater, and marine ecosystems.

887
888
889
890
891

The organization should specify whether the restoration actions are implemented while the activitiesof the organization or its suppliers are ongoing or after the activities have ended (e.g., restoration
actions taken after the closure of an operational site). The organization should specify if therestoration actions are planned or already being implemented. It should also provide information on
the species and ecosystems targeted through these actions.

892
893
894
895

For each operational site reported under 304-1-b, the organization should report the size of the area
restored and the ratio of the area restored to the area affected by its activities. An area is considered
restored when restoration actions have either returned the environment to its original state, or to astate where it has a healthy and functioning ecosystem.

896

See references [9] and [14] in the Bibliography.

897

Guidance to 304-5-a-iv

898
899
900
901

Offsets are management interventions outside of the areas affected by the organization’s activities orthe activities of its suppliers. These can include the restoration of degraded ecosystems or actions
taken to reduce or stop biodiversity loss in areas where this is predicted. The organization should
explain whether it identifies, designs, and manages offsets according to applicable national legislation

Page 24 of 37

902
903

or international best practice, such as the business and biodiversity offsets program (BBOP) Standard
on Biodiversity Offsets.

904
905
906

The organization should specify if the actions to offset negative impacts are planned or are alreadybeing implemented. It should also provide information on the species and ecosystems targetedthrough these actions.

907
908

For each operational site reported under 304-1-b, the organization should report the area size used tooffset its residual negative impacts.

909

See references [9] and [29] in the Bibliography.

910

Guidance to 304-5-a-v

911
912
913
914
915
916
917
918

Transformative actions are actions taken to contribute to systemic change inside and outside theorganization’s value chain to generate positive impacts on biodiversity. They aim to alter the drivers of
biodiversity loss through technological, economic, institutional, and social factors with changes inunderlying values and behaviors. Transformative actions can happen before, during, and after otheravoidance, minimization, restoration, and offset actions. The organization can describe how it ensuresthat its business model is compatible with the transition to halt and reverse the loss of biodiversity, or
what are the steps taken to transition to a circular economy. It can also report the proportion by valueof its products that enable the transition to halt and reverse the loss of biodiversity.

919
920
921
922

Additional conservation actions include actions taken in collaboration with partners to conserve or
restore biodiversity. These actions are not implemented to compensate for the organization’s negative
impacts and take place outside of the area affected by the organization’s activities or the activities of
its suppliers.

923

Guidance to 304-5-c

924
925
926

Synergies include actions taken to protect biodiversity that contribute to climate change mitigation.
Actions can also improve the capacity of species or ecosystems to adapt to unavoidable climatechange impacts.

927
928
929
930
931
932

In contrast, negative trade-offs include climate change mitigation actions that result in biodiversity
loss. For example, forestation of an area with non-native species may mitigate climate change
through the absorption of greenhouse gases but it may also result in the loss of biodiversity or
ecosystem services that flow from the affected ecosystems. The organization is only required toreport how it enhances synergies and reduces trade-offs between actions taken to manage its
biodiversity and climate change impacts when this is the case.

Page 25 of 37

934

Disclosure 304-6 Halting and reversing the loss of
biodiversity

935

REQUIREMENTS

936

The organization shall:

937
938
939

a. describe its policies on and commitments to halt and reverse the loss of biodiversity inline with the 2050 Goals and 2030 Targets in the Convention on Biological Diversity’s post2020 Global Biodiversity Framework;

940
941

b. describe the extent to which these policies and commitments apply to the organization’s
activities, its suppliers, and its downstream entities;

942
943

c. report the goals, targets, base year, and indicators used to evaluate progress, including
whether and how the targets have been defined using a science-based approach;

944
945

d. describe how it addresses the negative impacts of the transition to halt and reverse theloss of biodiversity on workers and local communities.

946

GUIDANCE

947
948
949
950
951
952
953
954
955

The 2050 vision for biodiversity of the Conference on Biological Diversity is ‘a world of living inharmony with nature’ where ‘by 2050, biodiversity is valued, conserved, restored and wisely used,maintaining ecosystem services, sustaining a healthy planet and delivering benefits essential for all
people’. The first draft of the Convention on Biological Diversity’s post-2020 Global Biodiversity
Framework recognizes the need to stabilize biodiversity loss by 2030 and to fully recover natural
ecosystems by 2050 to achieve its vision. It proposes four goals for 2050 (2050 Goals) with related
targets (2030 Targets) to incentivize action in three areas: reducing threats to biodiversity, meetingpeople’s needs through sustainable use and benefit-sharing, and tools and solutions for
implementation and mainstreaming.

956
957
958
959

To contribute to this vision, which seeks to balance and outweigh the negative impacts on
biodiversity, the organization needs to apply the mitigation hierarchy to inform its actions to manage
its impacts on biodiversity. The organization reports how it applies the mitigation hierarchy under
Disclosure 304-5.

960
961
962
963
964
965

If the organization has described its policies or commitments to halt and reverse the loss of
biodiversity under Disclosure 2-23 in GRI 2: General Disclosures 2021 or under 3-3-c in GRI 3:
Material Topics 2021, it can provide a reference to this information under 304-6-a and does not needto repeat the information. In this Standard, policies on and commitments to halt and reverse the lossof biodiversity also cover policies on and commitments to nature positive, net positive impact, and nonet loss and net gain of biodiversity.

966

See reference [2] in the Bibliography.

967

Guidance to 304-6-b

968
969

If the policies and commitments apply to all of the organization’s activities, suppliers, and downstream
entities equally, a brief statement of this fact is sufficient to comply with the requirement.

970
971
972
973
974

If the policies and commitments apply to only some of the organization’s activities, suppliers, or
downstream entities (e.g., they apply only to entities located in certain countries or to certain
subsidiaries), the organization should report which activities, suppliers, or downstream entities thepolicies and commitments apply to. It can also explain why the policies and commitments are limited
to these activities, suppliers, or downstream entities.

975
976
977

The organization should also explain whether the suppliers and downstream entities are obligated toabide by the policies and commitments or are encouraged (but not obligated) to do so. It can also
explain if the policies and commitments apply to other business relationships.

933

Page 26 of 37

978

Guidance to 304-6-c

979
980

The organization is required to explain how it has used best available science to set targets, including
information related to appropriate local sustainability contexts.

Page 27 of 37

981

Disclosure 304-7 Access and benefit-sharing

982

REQUIREMENTS

983

The organization shall:

984
985

a. report the number of access and benefit-sharing permits obtained and the country where
they have been obtained;

986
987

b. report the number of access and benefit-sharing agreements established and the country
where they have been established;

988
989

c. describe the type and amounts of monetary and non-monetary benefits shared and how
they are distributed and monitored;

990
991

d. describe how the monetary and non-monetary benefits shared support indigenous
peoples, local communities, and the conservation and sustainable use of biodiversity;

992
993
994

e. describe how patents for inventions based on or derived from the utilization of genetic
resources or associated traditional knowledge align with access and benefit-sharing
principles.

995

GUIDANCE

996
997
998

This disclosure provides information on how the organization respects national legal requirements toachieve the fair and equitable sharing of benefits arising from utilizing genetic resources and theassociated traditional knowledge.

999
1000

This disclosure is relevant to an organization conducting research and development on the genetic orbiochemical composition of genetic resources.

1001
1002
1003
1004
1005
1006
1007
1008

The fair and equitable sharing of benefits arising from the utilization of genetic resources is one of thethree objectives of the Convention on Biological Diversity. The Nagoya Protocol further builds on theprovisions of the Convention on Biological Diversity to set out the obligations of governments inrelation to access and benefit-sharing. In order to meet their obligations under the Nagoya Protocol,
governments must adopt legislative, administrative, or policy measures which set out national accessand benefit-sharing requirements and procedures. Organizations interested in accessing or using
genetic resources and associated traditional knowledge must follow the relevant national
requirements and procedures.

1009

See references [1] and [3] in the Bibliography.

1010

Guidance to 304-7-a

1011
1012

The organization is required to report the number of permits obtained from the competent national
authority in the country where the genetic resources were accessed.

1013
1014
1015
1016

If there is a change of intent in utilizing genetic resources and associated traditional knowledge, a new
permit is needed to ensure prior informed consent and the negotiation of new mutually agreed terms.
For example, when genetic resources used in academic research lead to a commercial application. In
this case, an organization reports two permits.

1017

Guidance to 304-7-b

1018
1019

The organization is required to report the number of agreements established in cases when countries
have not yet recognized legal access and benefit-sharing measures.

1020
1021
1022
1023
1024

The organization should also describe how mutually agreed terms were achieved, prior informed
consent obtained, and if they align with internationally recognized principles of ensuring dialogue,
participation, complete and accessible information, and respect for customary laws and practices. The
organization should describe how prior informed consent was obtained from indigenous peoples andlocal communities to access traditional knowledge.

1025
1026
1027
1028

If there is a change of intent in utilizing genetic resources and associated traditional knowledge, a new
agreement is needed to ensure prior informed consent and the negotiation of new mutually agreed
terms. For example, when genetic resources used in academic research lead to a commercial
application. In this case, an organization reports two agreements.

Page 28 of 37

1029
1030
1031

The organization should report if it has established a new agreement with the providers to ensure
prior informed consent and the negotiation of new mutually agreed terms if there is a change of intent
in utilizing genetic resources and associated traditional knowledge.

1032
1033

Where applicable, the organization can report if it has established access and benefit-sharing
agreements in areas beyond national jurisdictions and describe the mutually agreed terms.

1034

Guidance to 304-7-c

1035
1036
1037
1038
1039
1040

The organization is required to describe the types and amounts of benefits shared between providers
and users. Examples of monetary benefits are joint ownership of intellectual property rights, andsales-based royalties in licenses. Examples of non-monetary benefits are technology transfer, training
and capacity-building for local researchers, joint authorship of publications, and community projects.
In addition, the organization should report if the genetic resource is used for commercial or noncommercial purposes.

1041
1042

The organization is required to describe how the benefits of utilizing genetic resources are sharedwith the providers. Providers can be the government, indigenous peoples, and local communities.

1043
1044
1045

In cases where the utilization of the genetic resources is transferred to a third party, the organization
should report whether the mutually agreed terms include provisions to ensure the benefits continue tobe shared with the providers.

1046

Guidance to 304-7-e

1047

Requirement 304-7-e covers publicly available patents, including pending applications.

1048
1049
1050
1051

The organization should report the geographical location or source of genetic materials andassociated traditional knowledge. If the organization has access and benefit-sharing permits oragreements, it should report whether its patents align with access and benefit-sharing principles laidout in those permits or agreements.

1052

See reference [33] in the Bibliography.

Page 29 of 37

1053

Table 1. Example of template for presenting information for Disclosure 304-1

1054
1055

Table 1 offers an example of how to present information for Disclosure 304-1. The organization canamend the table according to its practices, for example by reporting additional information.

Location of the organization’s operational sites with the most significant impacts on
biodiversity and areas of high biodiversity value (requirements 304-1-b and 304-1-d)Site name[name oridentifier]Location ofoperational site

Size ofoperational site

Area of highbiodiversity value

Distance to area of highbiodiversity value[coordinates][hectares][name and type4][distance5]

Location of suppliers’ operational sites with the most significant impacts on biodiversity(requirement 304-1-c)Site nameLocation of operational site[name oridentifier][country or jurisdiction]

4 The type can be reported as follows: legally protected area, internationally recognized area, other area of highbiodiversity value that is important to indigenous peoples and local communities, or other area of importance forbiodiversity.
5 The organization is required to report the distance only in cases where the sites are near an area of highbiodiversity value.

Page 30 of 37

1056

Table 2. Example of template for presenting information for Disclosure 304-2

1057
1058

Table 2 offers an example of how to present information for Disclosure 304-2. The organization canamend the table according to its practices, for example by reporting additional information.

Climate change (requirement 304-2-a)Scope 1 GHG emissions

Scope 2 GHG emissions

Scope 3 GHG emissions(see Disclosure 305-1 in GRI 305:
Emissions 2016)(see Disclosure 305-2 in GRI 305:
Emissions 2016)(see Disclosure 305-3 in GRI 305:
Emissions 2016)[metric tons of CO2 equivalent][gross location-based in metric tons of
CO2 equivalent][metric tons of CO2 equivalent][if applicable, gross market-based inmetric tons of CO2 equivalent]Invasive alien species (requirement 304-2-b)Site name

Activities[name oridentifier][description]

Land and sea use change (requirement 304-2-c)Site name

Activities

Ecosystem type

Ecosystem size

[name oridentifier][description][type][hectares]

Overexploitation of resources (requirement 304-2-d)Site name

Activities

Type of resource

Quantity ofresource

Species extinction
risk6[name oridentifier][description][type][quantity][exctinction risk status]

Pollution (requirement 304-2-e)Site name

Activities

Type of pollutant

Quantity of pollutant[name oridentifier][description][type][quantity]

6 The organization is required to report the species extinction risk only in cases where it overexploits wild animaland plant species.

Page 31 of 37

1059

Table 3. Example of template for presenting information for Disclosure 304-3

1060
1061

Table 3 offers an example of how to present information for Disclosure 304-3. The organization canamend the table according to its practices, for example by reporting additional information.

Ecosystems affected or potentially affected by the organization’s activities (requirement304-3-a)Site
name[name oridentifier][Baseline year][Current reporting period]

Ecosystem
type

Ecosystem
size

Ecosystem
condition

Ecosystem
type

Ecosystem
size

Ecosystem
condition[type][hectares][condition][type][hectares][condition]

Species affected or potentially affected by the organization’s activities (requirement 304-3-b)
Site
name

[name oridentifier][Baseline year][Current reporting period]

Species nameSpecies
extinction risk

Species nameSpecies
extinction risk

[name][extinction risk
status][name][extinction risk
status]Ecosystems affected or potentially affected by the suppliers’ activities (requirement 304-3-c)
Site
name

Ecosystem condition[name oridentifier][condition]

Page 32 of 37

1062

Glossary

1063
1064

This glossary provides definitions for terms used in this Standard. The organization is required toapply these definitions when using the GRI Standards.

1065
1066
1067

The definitions included in this glossary may contain terms that are further defined in the complete
GRI Standards Glossary. All defined terms are underlined. If a term is not defined in this glossary or in
the complete GRI Standards Glossary, definitions that are commonly used and understood apply.

1068

baseline

1069

starting point used for comparisons

1070
1071

Note: In the context of energy and emissions reporting, the baseline is the projected energy
consumption or emissions in the absence of any reduction activity.

1072

direct (Scope 1) GHG emissions

1073

greenhouse gas (GHG) emissions from sources that are owned or controlled by the organization

1074

Examples: CO2 emissions from fuel consumption

1075

Note: A GHG source is any physical unit or process that releases GHG into the atmosphere.

1076

energy indirect (Scope 2) GHG emissions

1077
1078

greenhouse gas (GHG) emissions that result from the generation of purchased or acquired electricity,
heating, cooling, and steam consumed by the organization

1079

greenhouse gas (GHG)1080

gas that contributes to the greenhouse effect by absorbing infrared radiation

1081

human rights

1082
1083
1084
1085

rights inherent to all human beings, which include, at a minimum, the rights set out in the United
Nations (UN) International Bill of Human Rights and the principles concerning fundamental rights set
out in the International Labour Organization (ILO) Declaration on Fundamental Principles and Rights
at Work

1086
1087

Source: United Nations (UN), Guiding Principles on Business and Human Rights: Implementing theUnited Nations “Protect, Respect and Remedy” Framework, 2011; modified

1088
1089

Note: See Guidance to 2-23-b-i in GRI 2: General Disclosures 2021 for more information on ‘humanrights’.

1090

impact

1091
1092
1093

effect the organization has or could have on the economy, environment, and people, including on their
human rights, which in turn can indicate its contribution (negative or positive) to sustainable
development

1094
1095

Note 1: Impacts can be actual or potential, negative or positive, short-term or long-term, intended orunintended, and reversible or irreversible.

1096

Note 2: See section 2.1 in GRI 1: Foundation 2021 for more information on ‘impact’.

1097

indigenous peoples

1098

indigenous peoples are generally identified as:

1099
1100
1101

•

tribal peoples in independent countries whose social, cultural and economic conditions
distinguish them from other sections of the national community, and whose status is regulated
wholly or partially by their own customs or traditions or by special laws or regulations;

1102
1103
1104

•

peoples in independent countries who are regarded as indigenous on account of their descentfrom the populations which inhabited the country, or a geographical region to which thecountry belongs, at the time of conquest or colonization or the establishment of present state

Page 33 of 37

1105
1106

boundaries and who, irrespective of their legal status, retain some or all of their own social,economic, cultural and political institutions.

1107
1108

Source: International Labour Organization (ILO), Indigenous and Tribal Peoples Convention,1989(No. 169)1109

local community

1110
1111

individuals or groups of individuals living or working in areas that are affected or that could be affectedby the organization’s activities

1112
1113

Note: The local community can range from those living adjacent to the organization’s operations tothose living at a distance.

1114

material topics

1115
1116

topics that represent the organization’s most significant impacts on the economy, environment, andpeople, including impacts on their human rights

1117
1118

Note: See section 2.2 in GRI 1: Foundation 2021 and section 1 in GRI 3: Material Topics 2021 formore information on ‘material topics’.

1119

natural ecosystem conversion [new]

1120
1121

human-induced change of a natural ecosystem to another use, or profound change in an ecosystem's
species composition, structure, or function

1122

Source: Accountability Framework, Terms and Definitions, 2019; modified

1123
1124
1125

Note 1: Ecosystem conversion can include severe degradation or the introduction of management
practices that result in substantial and sustained change in the ecosystem's former species
composition, structure, or function.

1126
1127
1128
1129

Note 2: A natural ecosystem is an ecosystem that substantially resembles – in terms of species
composition, structure, and ecological function – one that is or would be found in a given area in theabsence of major human impacts. This includes human-managed ecosystems where much of thenatural species composition, structure, and ecological function are present.

1130

other indirect (Scope 3) GHG emissions

1131
1132

indirect greenhouse gas (GHG) emissions not included in energy indirect (Scope 2) GHG emissions
that occur outside of the organization, including both upstream and downstream emissions

1133

reporting period1134

specific time period covered by the reported information

1135

Examples: fiscal year, calendar year1136

supplier

1137
1138

entity upstream from the organization (i.e., in the organization’s supply chain), which provides a
product or service that is used in the development of the organization’s own products or services

1139
1140

Examples: brokers, consultants, contractors, distributors, franchisees, home workers, independent
contractors, licensees, manufacturers, primary producers, sub-contractors, wholesalers

1141
1142

Note: A supplier can have a direct business relationship with the organization (often referred to as afirst-tier supplier) or an indirect business relationship.

1143

supply chain

1144
1145

range of activities carried out by entities upstream from the organization, which provide products orservices that are used in the development of the organization’s own products or services

1146

sustainable development / sustainability

1147
1148

development that meets the needs of the present without compromising the ability of future
generations to meet their own needs

1149

Source: World Commission on Environment and Development, Our Common Future, 1987

Page 34 of 37

1150
1151

Note: The terms ‘sustainability’ and ‘sustainable development’ are used interchangeably in the GRI
Standards.

1152

value chain

1153
1154

range of activities carried out by the organization, and by entities upstream and downstream from theorganization, to bring the organization’s products or services from their conception to their end use

1155
1156
1157

Note 1: Entities upstream from the organization (e.g., suppliers) provide products or services that areused in the development of the organization’s own products or services. Entities downstream from theorganization (e.g., distributors, customers) receive products or services from the organization.

1158

Note 2: The value chain includes the supply chain.

1159

waste

1160

anything that the holder discards, intends to discard, or is required to discard

1161
1162

Source: United Nations Environment Programme (UNEP), Basel Convention on the Control ofTransboundary Movements of Hazardous Wastes and Their Disposal, 1989

1163

Note 1: Waste can be defined according to the national legislation at the point of generation.

1164
1165
1166

Note 2: A holder can be the reporting organization, an entity in the organization’s value chain
upstream or downstream (e.g., supplier or consumer), or a waste management organization, among
others.

1167

water consumption

1168
1169
1170
1171

sum of all water that has been withdrawn and incorporated into products, used in the production ofcrops or generated as waste, has evaporated, transpired, or been consumed by humans or livestock,or is polluted to the point of being unusable by other users, and is therefore not released back tosurface water, groundwater, seawater, or a third party over the course of the reporting period

1172

Source: CDP, CDP Water Security Reporting Guidance, 2018; modified

1173
1174

Note: Water consumption includes water that has been stored during the reporting period for use ordischarge in a subsequent reporting period.

1175

water stress

1176

ability, or lack thereof, to meet the human and ecological demand for water

1177

Source: CEO Water Mandate, Corporate Water Disclosure Guidelines, 2014

1178

Note 1: Water stress can refer to the availability, quality, or accessibility of water.

1179
1180
1181

Note 2: Water stress is based on subjective elements and is assessed differently depending onsocietal values, such as the suitability of water for drinking or the requirements to be afforded toecosystems.

1182

Note 3: Water stress in an area may be measured at catchment level at a minimum.

1183

water withdrawal

1184
1185

sum of all water drawn from surface water, groundwater, seawater, or a third party for any use overthe course of the reporting period

1186

worker1187

person that performs work for the organization

1188
1189
1190

Examples: employees, agency workers, apprentices, contractors, home workers, interns, selfemployed persons, sub-contractors, volunteers, and persons working for organizations other than thereporting organization, such as for suppliers

1191
1192

Note: In the GRI Standards, in some cases, it is specified whether a particular subset of workers is
required to be used.

Page 35 of 37

1193

Bibliography

1194
1195

This section lists authoritative intergovernmental instruments and additional references used indeveloping this Standard.

1196

Authoritative instruments:1197

1. United Nations (UN), Convention on Biological Diversity, 1992.

1198
1199

2. United Nations Convention on Biological Diversity (CBD), First Draft of the Post-2020 Global
Biodiversity Framework, 2021.

1200
1201
1202

3. United Nations (UN), Nagoya Protocol on Access to Genetic Resources and the Fair andEquitable Sharing of Benefits Arising from their Utilization to the Convention on Biological
Diversity, 2011.

1203
1204

4. United Nations et al., System of Environmental-Economic Accounting—Ecosystem Accounting(SEEA EA), 2021.

1205
1206

5. United Nations General Assembly, Transforming our world: the 2030 Agenda for Sustainable
Development, 2015.

1207

Additional references:

1208
1209

6. A-Z Biodiversity, Areas of Biodiversity Importance, https://biodiversitya-z.org/content/indigenouspeoples-and-community-conserved-territories-and-areas-icca, accessed on 4 October 2022.

1210

7. Accountability Framework initiative, Operational Guidance, 2020.

1211

8. Business and Biodiversity Offsets Programme (BBOP), Glossary, 2018.

1212

9. Business and Biodiversity Offsets Programme (BBOP), Standard on Biodiversity Offsets, 2012.

1213

10. Capitals Coalition, Natural Capital Protocol, 2018.

1214
1215

11. Convention on international trade in endangered species of wild fauna and flora (CITES),
Appendices I, II and III, 2022.

1216
1217

12. Cross Sector Biodiversity Initiative (CSBI), A cross-sector guide for implementing the Mitigation
Hierarchy, 2015.

1218

13. Endangered Wildlife Trust, The Biological Diversity Protocol (BD Protocol), 2020.

1219
1220
1221

14. Food and Agriculture Organization of the United Nations (FAO), International Union forConservation of Nature (IUCN), and Society for Ecological Restoration (SER), Principles forecosystem restoration to guide the United Nations Decade 2021–2030, 2021.

1222
1223

15. Food and Agriculture Organization of the United Nations (FAO), FAO Major Fishing Areas,
https://www.fao.org/fishery/en/area/search, accessed on 4 October 2022.

1224
1225

16. Integrated Biodiversity Assessment Tool (IBAT), World Database of Key Biodiversity Areas,
https://www.keybiodiversityareas.org/, accessed on 4 October 2022.

1226
1227

17. Integrated Biodiversity Assessment Tool (IBAT), World Database on Protected Areas,
https://www.ibat-alliance.org/the-data?locale=en, accessed on 4 October 2022.

1228
1229

18. International Finance Corporation (IFC), Performance Standard 6: Biodiversity Conservation andSustainable Management of Living Natural Resources, 2012.

1230
1231

19. International Union for Conservation of Nature (IUCN), A Global Standard for the Identification of
Key Biodiversity Areas, 2016.

1232
1233

20. International Union for Conservation of Nature (IUCN), Issues brief: Invasive alien species andclimate change, 2021.

1234
1235
1236

21. International Union for Conservation of Nature (IUCN), The IUCN Red List of Threatened
Species, https://www.iucnredlist.org/resources/threat-classification-scheme, accessed on 4
October 2022.

Page 36 of 37

1237
1238

22. International Union for Conservation of Nature (IUCN), The Ramsar Convention on theConservation of Wetlands, 1989.

1239
1240

23. Keith, D.A., Ferrer-Paris, J.R., Nicholson, E. and Kingsford, R.T, The IUCN Global Ecosystem
Typology 2.0: Descriptive profiles for biomes and ecosystem functional groups, 2020.

1241
1242

24. Millennium Ecosystem Assessment, Ecosystems and Human Well-being: Biodiversity Synthesis,
2005.

1243
1244

25. Natural Capital Finance Alliance, Data Collection, https://encore.naturalcapital.finance/en/dataand-methodology/data, accessed 4 October 2022.

1245
1246

26. Science Based Targets Network (SBTN), Science-based targets for nature: initial guidance forbusiness, 2020.

1247
1248

27. Taskforce on Nature-related Financial Disclosures (TNFD), Additional Draft Guidance on the‘Locate’ phase of the TNFD LEAP Approach - Priority Location Identification (L3), 2022.

1249
1250

28. Taskforce on Nature-related Financial Disclosures (TNFD), The TNFD Nature-Related Risk andOpportunity Management and Disclosure Framework Beta v0.2, 2022.

1251
1252

29. The Biodiversity Consultancy, A cross-sector guide for implementing the Mitigation Hierarchy,
2015.

1253
1254
1255

30. The Intergovernmental Science-Policy Platform on Biodiversity and Ecosystem Services (IPBES),
The methodological assessment report on scenarios and models of biodiversity and ecosystemservices, 2016.

1256
1257

31. United Nations Environment Programme World Conservation Monitoring Centre (UNEP-WCMC),ICCA Registry, https://www.iccaregistry.org/en/about/icca-registry, accessed on 4 October 2022.

1258
1259
1260
1261

32. United Nations Environment Programme World Conservation Monitoring Centre (UNEP-WCMC),
Capitals Coalition, Arcadis and International Climate Finance (ICF), Recommendations for astandard on biodiversity measurement and valuation, Aligning Accounting Approaches for Nature(Align), Consultation Draft, 2022.

1262
1263

33. World Intellectual Property Organization (WIPO), A Guide to Intellectual Property Issues inAccess and Benefit-sharing Agreements, 2018.

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