Ed Esrs E2

[Draft] ESRS E2 Pollution
DISCLAIMER
This Exposure Draft has to be read in conjunction with the cover note for ESRS public consultation.
It has been prepared under the sole responsibility of the EFRAG PTF-ESRS and is submitted to
public consultation by EFRAG SRB to inform the upcoming standard-setting steps. It therefore does
not reflect the EFRAG SRB’s position at this stage, nor the position of the European Union or
European Commission DG Financial Stability, Financial Services and Capital Markets Union (DG
FISMA), nor the position of organisations with which the EFRAG PTF-ESRS has cooperated. The
final version of the [draft] Standard will be produced by the EFRAG SRB starting from this Exposure
Draft, taking into consideration the outcome of the public consultation and the requirements of the
final CSRD.
[Draft] ESRS E2 Pollution is set out in paragraphs 1–52 and Appendices A: Defined terms and B:
Application Guidance. All the paragraphs, including those in Appendices A and B, have equal
authority. Each Disclosure Requirement objective is stated in a bold paragraph, followed by a
paragraph that illustrates the principle to be followed in the preparation of the respective disclosures.
The [draft] Standard also uses also terms defined in other [draft] ESRS and should be read in the
context of its objective.
[Draft] ESRS E2 Pollution Page 2 of 24

Exposure Draft, April 2022
Table of content
Objective 4
Interactions with other ESRS 5
Disclosure Requirements 6
General, Strategy, Governance and Materiality assessment 6
Policies, targets, action plans and resources 6
Disclosure Requirement E2-1 – Policies implemented to prevent and control pollution
6
Disclosure Requirement E2-2 – Measurable targets for pollution 7
Disclosure Requirement E2-3 – Pollution action plans and resources 8
Performance measurement 9
Disclosure Requirement E2-4 – Pollution of air, water and soil 9
Disclosure Requirement E2-5 – Substances of concern and most harmful substances 10
Taxonomy Regulation for pollution prevention and control including enabling activities 11
Disclosure Requirement E2-6 – Pollution-related incidents and deposit impacts and
risks, and financial exposure to the undertaking 11
Disclosure Requirement E2-7 – Financial effects from pollution-related impacts, risks
and opportunities 12
Appendix A: Defined terms 13
Appendix B: Application Guidance 17
General, Strategy, Governance and Materiality assessment 17
Pollution-related specific application guidance on ESRS 2 Disclosure Requirement SBM
4 Business model and strategy, paragraph 47 (d) on the resilience of the strategy and
business model 17
Pollution-related specific application guidance on ESRS 2 Disclosure Requirements IRO
1 and IRO 2 on materiality assessment 17
Policies, targets, action plans and resources 18
Disclosure Requirement E2-2 – Measurable targets for pollution 18
Disclosure Requirement E2-3 – Pollution action plans and resources 19
Performance measurement 19
Disclosure Requirement E2-4 – Pollution of air, water and soil 19
Disclosure Requirement E2-5 – Substances of concern and most harmful substances 22
Disclosure Requirement E2-6 – Pollution-related incidents and deposits impacts and
risks, and financial exposure to the undertaking 22

Objective
1. The objective of this [draft] Standard is to specify disclosure requirements which will
enable users of the sustainability statements to understand:
(a) how the undertaking affects pollution of air (both indoor and outdoor), water
(including groundwater) and soil, living organisms and food resources (referred to
in this [draft] Standard as “pollution”), in terms of positive and negative material
actual or potential impacts;
(b) any actions taken, and the result of such actions, to prevent, mitigate or remediate
actual or potential impacts;
(c) the plans and capacity of the undertaking to adapt its strategy, business model(s)
and operations in line with the transition to a sustainable economy concurring with
the needs for prevention, control and elimination of pollution, thereby creating a
toxic-free environment with zero pollution also in support of the EU Action Plan
“Towards a Zero Pollution for Air, Water and Soil”;
(d) the nature, type and extent of the undertaking’s material risks and opportunities
related to the undertaking’s pollution-related impacts and dependencies, as well
as from the prevention, control, elimination or reduction of pollution (including from
regulations) and how the undertaking manages them; and
(e) the effects of risks and opportunities, related to the undertaking’s pollution-related
impacts and dependencies, on the undertaking’s development, performance and
position over the short, medium and long term and therefore on its ability to create
enterprise value.
2. This Standard derives from the [draft] CSRD stating that the sustainability reporting
Standards shall specify the information that undertakings are to disclose about
environmental factors, including information about “pollution”.
3. This Standard sets out disclosure requirements related to pollution of air (both indoor
and outdoor), water (including groundwater), soil, substances of concerns, most
harmful substances and enabling activities in support of prevention, control and
elimination of pollution.
4. Pollution of air covers disclosure requirements related to the undertaking’s emissions

into air (both indoor and outdoor), and prevention, control and reduction of such
emissions and thus pollution.
5. Pollution of water covers disclosure requirements related to the undertaking’s

emissions into water (including groundwater), and prevention, control and reduction of
such emissions and thus pollution.
6. Pollution of soil covers disclosure requirements related to the undertaking’s emissions

into soil - independent on whether that introduction occurs at the production site of an
undertaking or outside or through the use of the undertaking’s products and/or
services, and prevention, control and reduction of such emissions and thus pollution.
7. “Substance of concern“ covers disclosure requirements related to the undertaking’s

production, use and/or distribution and commercialisation of both substances of
concern and most harmful substances. Such Disclosure Requirements aim at
providing to the users an understanding of the potential or actual impact from their use
and/or distribution and commercialisation in a context of possible restrictions towards
their use and/or distribution and commercialisation. In particular, “substances of
concern” are intended to include substances having a chronic effect for human health
or the environment or substances which hamper recycling for safe and high quality
secondary raw materials; “most harmful substances” are intended to cover substances

as listed in the EU Chemicals Strategy for Sustainability1 (see Appendix A: Defined

terms).
8. “Enabling activities“ cover disclosure requirements related to the undertaking’s

products and services that enable undertakings or individuals along the value chain,
to prevent, control and eliminate pollution. Such Disclosure Requirements refer to the
Platform on Sustainable Finance’s report with recommendations on technical
screening criteria for the four remaining environmental objectives of the EU Taxonomy
Regulation including the environmental objective of pollution prevention and control2
(see Appendix A: Defined terms).
Interactions with other ESRS

9. The seven following greenhouse gases are connected to pollution but are covered
under the Disclosure Requirements of ESRS E1 Climate change: carbon dioxide
(CO2), methane (CH4), nitrous oxide (N2O), hydrofluorocarbons (HFCs),
perfluorocarbons (PCFs), sulphur hexafluoride (SF6) and nitrogen trifluoride (NF3).
10. Specific implications from pollution on water related aspects, including water
consumption, water use, water discharge, etc. are addressed in ESRS E3 Water and
marine resources, while the measurement of pollution to water, caused by discharges
of pollutants from undertakings, is addressed through this [draft] Standard. The
possible impact from pollution on Biodiversity is addressed in ESRS E4 Biodiversity
and ecosystems. Aspects of waste, its reduction and avoidance are addressed in
ESRS E5 Resource use and circular economy.
11. Elements regarding pollution in a context that refers to, but is not limited to human
rights, the workforce, “just transition”, etc. are covered under the respective social
Standards from ESRS S1 Own workforce, ESRS S2 Workers in the value chain, ESRS
3 Affected communities and ESRS S4 Consumers and end-users.
12. The content of this [draft] Standard on Strategy and business model, Governance and
organisation and Impacts, risks and opportunities, as well as Policies, targets, action
plans and resources shall be read in conjunction respectively with ESRS 1 General
Principles and ESRS 2 General, strategy, governance, and materiality assessment.
13. This [draft] Standard covers sector-agnostic disclosure requirements. Sector-specific

disclosure requirements are developed separately and in accordance with the
classification following ESRS SEC 13 Sector classification.
1 The EU’s chemicals strategy for sustainability towards a toxic-free environment:

https://ec.europa.eu/environment/strategy/chemicals-strategy_fr
2 Platform on Sustainable Finance: Technical Working Group, report with recommendations on technical
screening criteria for the four remaining environmental objectives of the EU Taxonomy, March 30, 2022 and
its Annex
3 To be issued at a later stage

Disclosure Requirements
General, Strategy, Governance and Materiality assessment
14. The provisions of this [draft] Standard shall be read in conjunction with and reported
alongside the Disclosure Requirements of ESRS 2.
15. This [draft] Standard provides specific pollution-related application guidance in

Appendix B to describe and illustrate what are the pollution-related specificities that
should be considered by the undertaking when disclosing information under ESRS 2
with regards to:
(a) the resilience of the strategy and business model to pollution-related risks,
including transition and physical risks, referring to ESRS 2 Disclosure
Requirement SBM 4; and
(b) the process to identify material pollution-related impacts, risks and opportunities
and the outcome of this process, referring to ESRS 2 Disclosure Requirements
IRO 1 and IRO 2.
16. This topical Standard does not include additional pollution-specific disclosure
requirements.
Policies, targets, action plans and resources
Disclosure Requirement E2-1 – Policies implemented to prevent and control

pollution
17. The undertaking shall disclose its policies related to pollution prevention and
control.
18. The principle to be followed under this Disclosure Requirement is to provide an

understanding of the extent to which the undertaking has policies that address the
identification, assessment, management and/or remediation of material pollution-
related impacts, risks and opportunities.
19. The description of the pollution prevention and control policies shall follow the
principles defined in ESRS 1 Disclosure Principle 1 On policies adopted to manage
material sustainability matters. If the undertaking does not disclose the information
required by paragraph 17, because it does not believe it has material impacts, risks or
opportunities in relation to pollution or it has not adopted a policy and/or objectives as
outlined in ESRS 1 General Principles, it shall disclose this to be the case, shall provide
reasons for not having adopted a policy or objectives, and may report a timeframe in
which it aims to have such policy or objectives in place.
20. The undertaking shall in particular provide a description of the policies implemented in
order to:
(a) mitigate its negative impacts and maximise its positive impacts related to pollution
prevention and control in its own operations and throughout the upstream and
downstream value chain;
(b) avoid incidents and emergency situations, and if and when occurred to control and
limit their impact on the environment and/or society, in line with the Directive
2012/18/EU of the European Parliament and of the Council of 4 July 2012 on the
control of major-accident hazards involving dangerous substances;
(c) take account of actual and possible upcoming regulations; and

(d) where relevant, expand its enabling activities, and/or enhance their effectiveness,
to enable other undertakings to prevent, control and eliminate pollution.
21. For each policy, the undertaking shall disclose:
(a) which sub-subtopic(s) it covers:
i. pollution of air;
ii. pollution of water;
iii. pollution of soil;
iv. substances of concern;
v. enabling activities; or
vi. other;
(b) which objective it pursues among the following:
i. prevention of pollution at the source;
ii. minimisation and control of pollution;
iii. avoidance, and if occurred, control of the impact of incidents;
iv. remediation of pollution of both from regular activities and from incidents;
or
v. other.
Disclosure Requirement E2-2 – Measurable targets for pollution
22. The undertaking shall describe the pollution-related targets it has adopted.

understanding of the targets the undertaking has adopted to support its pollution-
related policies and address its material related impacts, risks and opportunities.
24. The description of the pollution prevention and control targets shall follow the principles
defined in ESRS 1 Disclosure Principle 2 On targets, progress and tracking
effectiveness.
25. The undertaking shall provide information on how the targets support the strategy of
the undertaking in support of the EU Action Plan “Towards a Zero Pollution for Air,
Water and Soil” on the reduction and substitution of production and use of substances
of concern and most harmful substances.
26. For its material pollution-related impacts, risks and opportunities, the undertaking shall
disclose its targets set related to:
(a) pollution to air in terms of total volume of emitted pollutants as per the classes
defined in paragraph AG15 and respective specific loads in a defined time period;
(b) pollution to water in terms of total volume of emitted pollutants as per the classes
and

(c) pollution to soil in terms of total volume of emitted pollutants as per the classes
(d) substances of concern in terms of:
i. total amounts generated and/or used by the undertaking split into main
classes of substances as per Appendix A: Defined terms;
ii. absolute turnover and share of total turnover of the undertaking realised
with products and services that are or that contain substances of concern;
and
iii. absolute raw material cost and share of total raw material cost of the
undertaking when substances of concern are procured to produce other
products and services.
(e) most harmful substances in terms of:
i. total amounts generated and/or used by the undertaking split into main
classes of substances per Appendix A: Defined terms;
ii. absolute turnover and share of total turnover of the undertaking realised
with products and services that are or that contain most harmful
substances; and
iii. absolute raw material cost and share of total raw material cost of the
undertaking when most harmful substances are procured to produce other
products and services.
27. The disclosure required in paragraph 22 shall also include:
(a) whether targets are mandatory (based on legislation, including future legislation)
or voluntary;
(b) a clarification on which emissions data and information the undertaking is required
to report under the Industrial Emissions Directive (IED) 4 and the BAT frameworks
(BREFs; BAT Conclusions)5;
(c) a presentation in 5-year periods including a set date in 2030, detailing the scope
covered in terms of total volume and/or specific loads. The undertaking shall
choose a representative baseline of the undertaking’s typical profile. The baseline
shall be chosen within the 3 years preceding the date of setting the first targets.
The baseline may also be an average of these three years if this allows a more
faithful representation and if this is specified; and
(d) where relevant, the geographical scope of the target: a description of the
geographies covered by the target and, where appropriate, an explanation of why
geographies identified as relevant were not included.
Disclosure Requirement E2-3 – Pollution action plans and resources
28. The undertaking shall disclose its pollution-related action plans and the
resources allocated to their implementation.
4 DIRECTIVE 2010/75/EU OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL of 24 November

2010 on industrial emissions (integrated pollution prevention and control)
5 COMMISSION IMPLEMENTING DECISION of 10 February 2012 laying down rules concerning guidance
on the collection of data and on the drawing up of BAT reference documents and on their quality-assurance
referred to in Directive 2010/75/EU of the European Parliament and of the Council on industrial emissions


understanding of the types of process, initiative or engagement through which the
undertaking works to prevent, mitigate and remedy material pollution-related impacts,
or seeks to achieve positive impacts, or to manage pollution-related risks and
opportunities, including transparency on the key actions taken and planned in order to
achieve its pollution-related policy objectives and targets.
30. The description of the pollution-related action plans and resources shall follow the
principles defined in ESRS 1 Disclosure Principle 3 On actions, action plans and
resources in relation to policies and targets. In particular, the undertaking shall include
the related allocation of resources established and communicated in financial terms.
31. The disclosure required by paragraph 28 shall include for each key action plan or
action:
(a) a description of whether the reported key actions are planned or implemented to
achieve compliance with environmental legislation, including:
i. addressing failures to comply with Do-No-Significant-Harm criteria for

pollution prevention and control according to the EU Taxonomy
Regulation and its Delegated Acts;
ii. meeting BAT requirements in the future; and
iii. any phase out of materials/compounds that have a material negative

impact.
(b) a list of the stakeholders involved in the actions or action plan and how they are
involved, and/or a list of stakeholders impacted negatively or positively by the
actions or action plan and how they are impacted. An explanation whether the
action is intended to be a one-time initiative or a systematic practice;
(c) the outcome of its assessment whether key actions may induce significant
sustainability impacts, related to other environmental topics beyond pollution
and/or related to social topics;
(d) a description of whether the action is individual or collective: for a collective action,
the undertaking shall explain its role and contribution; and
(e) a description of whether the success of the action depends on similar or supporting
actions by other undertakings, and to what degree.
Performance measurement
Disclosure Requirement E2-4 – Pollution of air, water and soil
32. The undertaking shall disclose the list of pollutants that are generated or used
during production processes or that are procured, and that leave its facilities as
emissions, as products, or as part of products or services.

understanding of the emissions that the undertaking generates in the air, water and
soil.
34. The pollutants to be disclosed by the undertaking shall comprise those listed in Annex
II of the E-PRTR Regulation6, to be grouped in accordance with paragraph AG 15 if
the undertaking meets or exceeds the threshold for releases stipulated in Annex II of
6
REGULATION (EC) No 166/2006 OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL of 18
January 2006 concerning the establishment of a European Pollutant Release and Transfer Register

the E-PRTR Regulation within the reporting period. This threshold shall be assessed
at the level of the undertaking, and not individually for each facility.
35. The disclosure required by paragraph 32 shall include emissions to air, emissions as
effluents or other entries to water and pollutants to soil resulting from its operations,
products and services all along the value chain and product life-cycle.
36. For the pollutants to air, water or soil, the undertaking shall disclose:
(a) the total amount of emissions in a defined period, using standard measures such
as tons, kilograms, cubic meters,;
(b) the specific loads of emissions put in relation to production outputs (e.g. activity
level, production volumes);
(c) where defined, the targets as described under ESRS E2 Disclosure
Requirement 2 above; and
(d) where relevant, the land or water affected (in km 2).
37. The undertaking shall put its disclosure into context with:
(a) the local air quality indices (AQI) for the area where the undertaking’s pollution to
air occurs;
(b) the degree of urbanisation (DEGURBA)7 for the area where pollution to air occurs;
and
(c) the undertaking’s percentage of the total emissions of pollutants to water and soil
occurring in areas of high-water stress [as defined in the ESRS E3, Appendix A].
38. Where the undertaking’s activities are subject to the Industrial Emission Directive (IED)
and relevant Best Available Techniques Reference Documents (BREFs), irrespective
on whether the activity takes place within the European Union or not, the undertaking
shall disclose:
(a) a list of installations operated by the undertaking that fall under the IED and EU
BAT Conclusions;
(b) a list of any non-compliance incidents or enforcement actions;
(c) the actual performance, as specified in the BAT BREF/BAT conclusions for
installations, of the undertaking against the BAT-AEL conclusions.;
(d) the actual performance of the undertaking against BAT-AEPLs as applicable to
the sector and installation; and
(e) a list of any compliance schedules or derogations associated with the
implementation of BAT-AEL.
Disclosure Requirement E2-5 – Substances of concern and most harmful

substances
39. The undertaking shall disclose specific information on the substances of

concern and most harmful substances that are generated or used during
production processes or that are procured, and that leave its facilities as
emissions, as products, or as part of products or services.
7 https://ec.europa.eu/eurostat/web/degree-of-
urbanisation/background#:~:text=The%20Degree%20of%20urbanisation%20(DEGURBA,based%20on%20
2020%20Census%20results


understanding of the impact of the undertaking on health and the environment related
to the undertaking’s production, use, distribution and commercialisation of substances
of concern and most harmful substances, as well as an understanding of the
undertaking’s risks and opportunities, including exposure towards those substances of
concern and risks arising from changes in regulations.
41. The disclosure required by paragraph 39 shall present separately the information
related to (i) substances of concern and (ii) most harmful substances:
(a) total amounts generated and/or used by the undertaking split into main classes of
substances as per the definitions of “substance of concern” and “most harmful
substances” in Appendix A: Defined terms;
(b) net turnover and share of total net turnover of the undertaking made with products
and services that are or that contain the above-mentioned substances; and
(c) absolute raw material cost and share of total raw material cost of the undertaking
that relate to the procurement of the above-mentioned substances to produce
other products and services.
Taxonomy Regulation for pollution prevention and control including enabling

activities
42. The undertaking shall disclose information required by Article 8 of Regulation (EU)
2020/852 (Taxonomy Regulation) in conjunction with the Commission Delegated
Regulation (EU) 2021/2178 and in conjunction with upcoming technical screening
criteria for determining the conditions under which an economic activity qualifies as
contributing substantially to pollution prevention and control.
43. Article 8(2) of Regulation (EU) 2020/852 requires undertakings subject to the
[Corporate Sustainability Reporting Directive] to disclose information on the proportion
of the net turnover, capital expenditure (‘CapEx’) and operating expenditure (‘OpEx’)
or on their green asset ratio associated with economic activities that qualify as
environmentally sustainable.
44. The information to be disclosed under the upcoming pollution-related provisions of

Regulation (EU) 2020/852 shall be complementary to the information provided under
the provisions of this [draft] Standard.
Disclosure Requirement E2-6 – Pollution-related incidents and deposit impacts and

risks, and financial exposure to the undertaking
45. The undertaking shall disclose the impact of and its financial exposure to
pollution-related incidents and deposits.

understanding of how principal pollution-related incidents and deposits may affect the
environment and society and/or the undertaking’s development, performance and
position over the short-, medium- and long-term. This includes the consideration that
those potential future financial effects may not meet the recognition criteria set for
financial statements at the reporting date.
47. The disclosure required by paragraph 45 shall include a description of major incidents
and deposits, based on double-materiality assessments, whereby pollution had
negative effects on the environment and/or on the undertaking’s financial performance
in the past reporting year, e.g. through interruptions of production and/or in supply
chain as a result of pollution, or through pollution prevention and control measures.

48. The undertaking shall disclose its operational and capital expenditures occurred in the
reporting period in conjunction with these major incidents and deposits.
49. If not already disclosed as part of the undertaking’s financial statements, the
undertaking shall disclose its provisions for environmental protection and remediation
costs, e.g. for rehabilitating contaminated sites, recultivating landfills, removal of
environmental contamination at existing production or storage sites and similar
measures. When the information is provided in the undertaking’s financial statements,
a clear reference shall be included in the sustainability statements.
Disclosure Requirement E2-7 – Potential financial effects from pollution-related

impacts, risks and opportunities
50. The undertaking shall disclose the potential financial effects of the risks and
opportunities arising from pollution-related impacts and dependencies.
51. The principle to be followed under this Disclosure Requirement is to an understanding

of the potential effects of risks and opportunities, arising from the undertaking’s
pollution-related impacts and dependencies, on the undertaking’s development,
performance and position over the short, medium and long term and therefore on its
ability to create enterprise value. This includes those related to pollution prevention
and control, considering that those potential future financial effects may not meet at
the reporting date the recognition criteria set for financial statements. Such information
is complementary to the information requested under the Taxonomy Regulation,
particularly related to enabling activities that enable other undertakings to prevent,
control and eliminate pollution.
52. The undertaking may include an assessment of the market size of related products
and services at risk over the short-, medium-, and long-term, explaining how these are
defined, how financial amounts are estimated and which critical assumptions are
made.

Appendix A: Defined terms

This appendix is an integral part of the [draft] ESRS E2 Pollution.
Best Available According to Article 3 point 10 of Directive 2010/75/EU “Best Available

Techniques (BAT) Techniques (BAT)” means the most effective and advanced stage in the
development of activities and their methods of operation which indicates
the practical suitability of particular techniques for providing the basis for
emission limit values and other permit conditions designed to prevent
and, where that is not practicable, to reduce emissions and the impact on
the environment as a whole:
i. “techniques” includes both the technology used and the way in
which the installation is designed, built, maintained, operated and
decommissioned;
ii. “available techniques” means those developed on a scale which
allows implementation in the relevant industrial sector, under
economically and technically viable conditions, taking into
consideration the costs and advantages, whether or not the
techniques are used or produced inside the Member State in
question, as long as they are reasonably accessible to the
operator; and
iii. “best” means most effective in achieving a high general level of
protection of the environment as a whole.
BAT Conclusions A document containing the parts of a BAT reference document laying
down the conclusions on best available techniques, their description,
information to assess their applicability, the emission levels associated
with the best available techniques, associated monitoring, associated
consumption levels and, where appropriate, relevant site remediation
measures.8
BAT-AEL ‘Best Available Technique-Associated Emission Level and means the
range of emission levels obtained under normal operating conditions
using a best available technique or a combination of best available
techniques, as described in BAT conclusions, expressed as an average
over a given period of time, under specified reference conditions., i.e. the
emission level that is associated with a BAT. 9
BAT-AEPL Best Available Technique-Associated Environmental Performance Level.
For each individual BAT, a BAT-AEPL can be indicated. Such
environmental performance levels can be expressed as an emission level
(BAT-AEL), a consumption level, or a different kind of performance
level.10
BREF or EU Best A document, drawn up for defined activities and describing, in particular,
available applied techniques, present emissions and consumption levels,
techniques techniques considered for the determination of best available techniques
reference
as well as BAT conclusions and any emerging techniques. 11
documents
Deposit An amount of a substance that has accumulated in the environment,
either in water or in soil, and either as a consequence of regular activities
8 Source: Industrial Emissions Directive (IED), Article 3

9 Source: https://www.elni.org/fileadmin/elni/dokumente/elni_forum/2010/van_den_abeele_-_Polders_IED-
BAT-AEL.pdf
10 Source: https://emis.vito.be/en/publications/bat-
conclusions#:~:text=For%20each%20individual%20BAT%2C%20an,different%20kind%20of%20performanc
e%20level
11 Source: Industrial Emissions Directive (IED), Article 3

or from incidents or from disposals of undertakings, independent on

whether that accumulation occurs at the production site of an undertaking
or outside.
Emission The direct or indirect release of substances, vibrations, heat or noise from
individual or diffuse sources […] into air, water or soil. 12
Enabling activities An economic activity is “Enabling” if it directly enables other activities to
make a substantial contribution to one or more of the EU Taxonomy’s
environmental objectives, provided that it:
i. does not lead to a lock-in of assets that undermine long-term
environmental goals, considering the economic lifetime of those
assets; and
ii. has a substantial positive environmental impact, on the basis of
life-cycle considerations. An enabling activity qualifies as
“contributing substantially” to one or more of the environmental
objectives set out in Article 9 of the EU Taxonomy Regulation.13
Indirect impact See the definition of “impact”. “Indirect” (also referred to as secondary or
induced impact) means happening in addition to an intended result or not
being connected in a simple and/or direct way.
Inorganic Emissions within or lower than the emission levels associated with the
pollutants best available techniques (BAT-AEL) as defined in Article 3, point (13) of
Directive 2010/75/EU of the European Parliament and of the Council14,
for the Large Volume Inorganic Chemicals- Solids and Others industry.
Most harmful As listed in the Chemicals Strategy for Sustainability 14 are:
substances i. carcinogenic, mutagenic or reprotoxic substances (CMRs);
ii. persistent, bioaccumulative and toxic substances (PBTs);
iii. very persistent and very bioaccumulative substances (vPvBs);
iv. endocrine disrupting substances (EDs);
v. immunotoxicants;
vi. neurotoxicants, respiratory sensitisers;
vii. substances having specific organ toxicity (STOT) with chronic
effects;
viii. persistent, mobile and toxic substances (PMTs); and
ix. very persistent and very mobile substances (vPvMs).
Ozone-depleting Substances listed in the Montreal Protocol on Substances that Deplete
substances the Ozone Layer15.
Pollutant A substance, vibration, heat, noise, light or other contaminant present in
air, water or soil which may be harmful to human health and/or the
environment, which may result in damage to material property, or which
may impair or interfere with amenities and other legitimate uses of the
environment.16 For a definition of “pollution” and “pollutants”, see Article
2 points (10) and (12) of the Taxonomy Regulation (EU) 2020/852.
12 Directive 2010/75/EU of the European Parliament and of the Council of 24 November 2010 on Industrial
Emissions (integrated pollution prevention and control), at Article 3(4)
13 REGULATION (EU) 2020/852 OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL of 18 June
2020 on the establishment of a framework to facilitate sustainable investment, and amending Regulation
(EU) 2019/2088), at Article 16
14 Source: Platform on Sustainable Finance: Technical Working Group, report with recommendations on
technical screening criteria for the four remaining environmental objectives of the EU Taxonomy, March 30,
2022
15 https://ozone.unep.org/treaties/montreal-protocol/montreal-protocol-substances-deplete-ozone-layer
16 REGULATION (EU) 2020/852 OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL of 18 June
2020 on the establishment of a framework to facilitate sustainable investment, and amending Regulation
(EU) 2019/2088), at Article 2(10)

Pollution The direct or indirect introduction, as a result of human activity, of

pollutants into air, water or soil which may be harmful to human health
and/or the environment, which may result in damage to material property,
or which may impair or interfere with amenities and other legitimate uses
of the environment. For a definition of “pollution” and “pollutants”, see
Article 2 points (10) and (12) of the Taxonomy Regulation (EU) 2020/852.
Pollution of air The introduction into air - both indoor and outdoor -, as a result of human
activity, of substances, vibrations, heat or noise which may be harmful to
human health or the environment, result in damage to material property,
or impair or interfere with amenities and other legitimate uses of the
environment.17 Air pollutants include nitrogen oxides (NOx), sulphur
oxides (SOx), particulate matter (PM), volatile organic compounds
(VOCs), heavy metals, etc. as listed in paragraph AG15.
Pollution of soil The introduction into soil - independent of whether that introduction
occurs at the production site of an undertaking or outside or through the
use of the undertaking’s products and/or services - as a result of human
activity, of substances, vibrations, heat or noise which may be harmful to
human health or the environment, result in damage to material property,
or impair or interfere with amenities and other legitimate uses of the
environment.18 Soil pollutants include inorganic pollutants, persistent
organic pollutants (POPs), pesticides, nitrogen and phosphorus
compounds, etc. as listed in paragraph AG15.
Pollution of water The introduction into water - including groundwater and including leachate
-, as a result of human activity, of substances, vibrations, heat or noise
which may be harmful to human health or the environment, which result
in damage to material property, or impair or interfere with amenities and
other legitimate uses of the environment. 19 Water pollutants include
synthetic organic and inorganic compounds, pathogens, heavy metals,
micro plastics, etc. as listed in paragraph AG15.
Soil The top layer of the Earth’s crust situated between the bedrock and the
surface. The soil is composed of mineral particles, organic matter, water,
air and living organisms.20
Specific loads Mass of pollutant released per mass of product manufactured. Specific
loads allow for the comparison of the environmental performance of
installations irrespective of their different production volumes and are not
influenced by mixing or dilution.21
Substances of Covers:
concern i. substances having a chronic effect for human health or the
environment (Candidate list in REACH and Annex VI to the CLP
Regulation); and



21 COMMISSION IMPLEMENTING DECISION of 10 February 2012 laying down rules concerning guidance
on the collection of data and on the drawing up of BAT reference documents and on their quality, assurance
referred to in Directive 2010/75/EU of the European Parliament and of the Council on industrial emissions,
page 36

ii. those which hamper recycling for safe and high quality secondary
raw materials; and the most harmful substances as listed in the
Chemicals Strategy for Sustainability.

Appendix B: Application Guidance

The provisions of this appendix shall be applied in conjunction with the [draft] disclosure
requirements defined in paragraphs 1 to 52.
This appendix describes how to apply the disclosure requirements, has the same authority as the
disclosure requirements and is an integral part of the proposed [draft] ESRS E2 Pollution.
General, Strategy, Governance and Materiality assessment
Pollution-related specific application guidance on ESRS 2 Disclosure Requirement

SBM 4, paragraph 47 (d) on the resilience of the strategy and business model
AG 1. The description of the resilience of the undertaking’s strategy and business model(s)
shall cover all material impacts, risks and opportunities identified and shall include:
(a) the resilience of the strategy and business model(s) to risks related to pollution
and to pollution prevention and control measures and regulations; and
(b) a description of opportunities arising from pollution prevention and control
measures and regulations, and/or from enabling activities.
AG 2. When assessing its strategy to mitigate negative impacts arising from, and risks to, its
business model(s), the undertaking shall include the value chain and identify:
(a) both actual and future impacts, risks and opportunities; and
(b) where in the value chain pollution-related impacts, risks and opportunities are
concentrated.
AG 3. When disclosing information required by paragraph AG1, the undertaking shall provide
an understanding of its strategy for and contribution to the EU Action Plan “Towards a
Zero Pollution for Air, Water and Soil” and in particular:
(a) the extent to which it is or may be affected by the targets and measures of the EU
Action Plan “Towards a Zero Pollution for Air, Water and Soil”, including the
revision of existing directives (e.g., the Industrial Emissions Directive);
(b) how it intends to reduce its pollution footprint to contribute to the targets of the EU
Action Plan “Towards a Zero Pollution for Air, Water and Soil”; and
(c) thus, how the EU Action Plan does or might impact the undertaking’s strategy and
business model.
AG 4. When disclosing information under paragraph AG1, the undertaking shall provide an
understanding, where relevant, of how it might be impacted by, and contribute to, the
intention of the EU that “substances of concern are minimised and substituted as far
as possible and phasing out the most harmful ones for non-essential societal use, in
particular in consumer products”22.
Pollution-related specific application guidance on ESRS 2 Disclosure

Requirements IRO 1 and IRO 2 on materiality assessment
AG 5. The description of the processes to identify and assess material sustainability impacts,
risks and opportunities shall include:
22
Source: COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, THE EUROPEAN
ECONOMIC AND SOCIAL COMMITTEE AND THE COMMITTEE OF THE REGIONS, Chemicals Strategy for Sustainability, Towards a
Toxic-Free Environment, Brussels, 14.10.2020

(a) all sub-subtopics covered in this [draft] Standard: pollution to air, pollution to water,
pollution to soil and the production, distribution, commercialisation and use of
substances of concern including most harmful substances and enabling activities
in support of prevention, control and elimination of pollution;
(b) environmental and human health impacts related to pollution and pollution
prevention and control measures and regulations, including accidental impacts;
and
(c) risks and opportunities related to pollution and to pollution prevention and control
measures and regulations.
AG 6. When disclosing the information required under paragraph AG5(a), the undertaking
shall explain how it conducts its due diligence process including how it:
(a) screens its activities and plans in order to identify actual and potential future
impacts in own operations and along the value chain;
(b) assesses the materiality of the actual and potential impacts based on severity
(scale, scope, remediability), likelihood or other criteria;
(c) covers all sub-subtopics: pollution to air, pollution to water, pollution to soil and the
production, distribution, commercialisation and use of substances of concern
including most harmful substances;
(d) assesses the resilience of the strategy and business model(s) to risks related to
pollution and to pollution prevention and control measures and regulations; and
(e) assesses opportunities arising from pollution prevention and control measures and
regulations, and/or enabling activities.
AG 7. The undertaking shall also describe, how it has applied the Commission
Recommendation (EU) 2021/2279 of 15th December 2021 on the use of the
Environmental Footprint methods to measure and communicate the life cycle
environmental performance of products and organisations.
AG 8. The undertaking shall disclose the outcome of its processes to identify and assess
pollution-related impacts, risks and opportunities, i.e. disclose separately:
(a) pollution impacts, risks and opportunities related to regular activities (e.g.
emissions to air and water that regularly originate from a production process and
need to be controlled); and
(b) incidents or emergency situations that are likely to lead to pollution and the issue
of domino effects, or that have led to pollution with subsequent effects on the
environment and society.
Policies, targets, action plans and resources
Disclosure Requirement E2-2 – Measurable targets for pollution
AG 9. When disclosing targets under Disclosure Requirement E2-2, the undertaking shall
clarify when a target addresses shortcomings related to the Do No Significant Harm
(DNSH) criteria for Pollution Prevention and Control while assessing the Substantial
Contribution to one of the other environmental objectives of Regulation (EU) 2020/852.
AG 10. Where those targets are subject to EU BREFs or other voluntary benchmarks (incl.
EMAS), the disclosure shall be provided in a format that enables:
(a) benchmark and progress measures against the relevant pollution prevention
regulation or standard; and

(b) assessment of the level of compliance with the strict performance benchmarks or
the less strict performance benchmarks of the relevant pollution prevention
regulation or standard.
Disclosure Requirement E2-3 – Pollution action plans and resources
AG 11. The undertaking shall specify when an action meets enforcement requirements or
future compliance needs, such as meeting BAT requirements in the future, or any
phase out of materials/compounds that could have a material impact.
AG 12. Where an action plan extends to upstream or downstream value chain engagements,
the undertaking shall provide information on the typology of actions reflecting these
engagements, including:
(a) onboarding and compliance;

(b) incentivising for improved pollution prevention and control, including stewardship;
(c) innovation;
(d) assessment of supplier performance against the undertaking’s own pollution
prevention and control commitments;
(e) selection processes against the undertaking’s own pollution prevention and control
commitments; and
(f) training and collaboration.
Performance measurement
Disclosure Requirement E2-4 – Pollution of air, water and soil
AG 13. The information provided under this Disclosure Requirement shall refer, if relevant, to
information the undertaking may already be required to report under existing legislation
(i.e. IED, E-PRTR…).
AG 14. The undertaking shall describe its measurement processes for collecting data for
pollution related accounting and reporting, the type of data needed, the information
sources typically connected to desired objectives, outcomes or outputs.
AG 15. The pollutants shall be grouped as follows:
(a) the air pollutants to be disclosed according to ESRS E2 Disclosure Requirement

4 according to the indicators used to establish priority activities from the Platform
on Sustainable Finance’s report on the four remaining environmental objectives
from March 2022, page 102:
i. SOx (sulphur oxides);
ii. NOx (nitrogen oxides);
iii. CO (carbon monoxide);
iv. PM (particulate matter);
v. Heavy metals;
vi. POPs (persistent organic pollutants);
vii. VOCs (volatile organic compounds);

viii. ODS (ozone depleting substances);
ix. NH3 (ammonia);
x. other (hazardous) chemicals regulated by REACH and CLP and their

compounds (e.g. SVHC, chlorine, fluorine, bromine, iodine, asbestos,
cyanides, other CMRs, PBTs, EDCs); and
xi. other physical pollutants (heat, noise, light, radiation, odour).
(b) the water pollutants to be disclosed according to ESRS E2 Disclosure

Requirement 4 according to the indicators used to establish priority activities from
the Platform on Sustainable Finance’s report on the four remaining environmental
objectives from March 2022, page 102:
i. oxygen demanding pollutants and nutrients (bio-degradable organic

compounds in suspended, colloidal, or dissolved form);
ii. synthetic organic compounds (pesticides, detergents, food additives,

pharmaceuticals, insecticides, paints, fibres, PCBs, solvents, PAHs, and
VOCs,);
iii. oil;
iv. pathogens (viruses, bacteria);
v. inorganic pollutants (heavy metals, mineral acids, inorganic salts, other

metals, complexes of metals with organic compounds, cyanides,
sulphates, etc.);
vi. microplastics and plastic particles; and
vii. other physical pollutants (heat, radiation, light, noise/vibration, suspended

solids and sediments).
(c) The soil pollutants to be disclosed according to ESRS E2 Disclosure Requirement

4 according to the indicators used to establish priority activities from the Platform
on Sustainable Finance’s report on the four remaining environmental objectives
from March 2022, page 102:
i. inorganic pollutants;
ii. organic compounds, including POPs, pesticides, pharmaceuticals and

antibiotics;
iii. nitrogen and phosphorous compounds; and
iv. other (physical) pollutants (vibrations, micro plastics and plastic particles).
AG 16. In order to meet financial market participants needs, the undertaking shall ensure that
it discloses separately, if not already addressed through the disclosure according to
paragraph AG15:
(a) the total amount of inorganic emissions in tons23;
23This information supports the information needs of financial market participants subject to Regulation (EU)
2019/2088 as reflecting an additional principal adverse impact as set out by indicator #1 in Table 2 of Annex
1 of the related Delegated Regulation with regards to disclosure rules on sustainable investments.

(b) the total volume of air pollutants in tons24 according to the following definition:
i. direct emissions of sulphur dioxides (SO2), nitrogen oxides (NOx), non-

methane volatile organic compounds (NMVOC), and fine particulate
matter (PM2,5) as defined in Article 3, points (5) to (8), of Directive (EU)
2016/2284 of the European Parliament and of the Council 25;
ii. ammonia (NH3) as referred to in that Directive; and
iii. heavy metals (HM) as referred to in Annex I to that Directive.
(c) the total volume of ozone-depleting substances in tons26.
AG 17. For each one of the group of pollutants, the undertaking shall disclose the source of
pollution factors used, as well as standards, methodologies, assumptions, and/or
calculation tools used.
AG 18. When preparing the information on pollutant performance measures, the undertaking
shall apply the following approaches for quantification of its pollution-related
performance measures, in the following order of priority:
(a) direct measurement of emissions, effluents or other pollution through the use of
recognised continuous monitoring systems (e.g. AMS Automated Measuring
Systems);
(b) periodic measurements;
(c) calculation based on site-specific data;
(d) calculation based on published pollution factors; and
(e) estimation.
AG 19. The undertaking shall specify:
(a) whether its monitoring is carried out in accordance with EU BREF Standards or
another relevant reference benchmark; and
(b) whether and how the calibration tests of the AMS were undertaken and the
verification of periodic measurement by independent labs were ensured.
AG 20. Where an inferior methodology compared to direct measurement of emissions is

chosen to quantify emissions, the reasons for choosing this inferior methodology shall
be outlined by the undertaking. If estimations are used, the undertaking shall indicate
the standard, sectoral study or sources, which are the basis used in estimating its
emissions, as well as the possible degree of uncertainty and the range of estimates
reflecting the measurement uncertainty.
AG 21. The undertaking may provide a breakdown of its emissions by type of source, by
economic activity and/or by geographic areas. Where an undertaking reports segment
data in its financial statements, the use of the same segments for pollution disclosures
is encouraged.
24 This information supports the information needs of financial market participants subject to Regulation (EU)
25 Available here: https://eur-lex.europa.eu/legal-
content/EN/TXT/?uri=uriserv%3AOJ.L_.2016.344.01.0001.01.ENG
26 This information supports the information needs of financial market participants subject to Regulation (EU)

AG 22. For each group of pollutants, for which disclosures are required, total amounts and
specific load disclosures may be presented in a tabular format. Each row may include
current and (where applicable) comparative values, alongside associated base line
values, targets and target dates where set, and the respective calculation methodology
of the pollutants as proposed in the example below:
Pollutant Pollution Measure type Actual Unit Reporting Reporting Base Base Target Target Calculation
to air, reported Year N Comparative line line Date methodology
water or value year
soil
SOx Air Emissions tons,

(sulphur loads or kg,
oxides) concentration mg,
mg/m3
Disclosure Requirement E2-5 – Substances of concern and most harmful

substances
AG 23. For substances of concern and most harmful substances, the undertaking shall
disclose the substances as grouped in the lists defined in Appendix A: Defined terms
in the following tabular format:
KPIs Reporting Absolute Comparative Share in % Reporting Base line Base Target Target
Comparative net of Comparative line net Share in %
turnover total net year turnover of total
202x of turnover 202x of Turnover
products 202x of the products 202x of the
and reporting and reporting
services, undertaking, services undertaking
Reporting Reporting
Year N Year N
Group of Monetary % Monetar %

substances amount y amount
of concern
Group of Monetary % Monetar %

most harmful amount y amount
substances
Disclosure Requirement E2-6 – Pollution-related incidents and deposits impacts

and risks, and financial exposure to the undertaking
AG 24. When disclosing information related to incidents and deposits under ESRS E2
Disclosure Requirement 6, the undertaking shall include:
(a) a description of all the cases of occurred incidents, clarifying the material
environmental and societal impacts, based on a materiality assessment;
(b) monetary costs incurred as a consequence of these incidents, for example but not
limited to:
iv. cost for eliminating and remediating the respective pollution of air, water
and soil;
v. damage compensation costs; and

vi. payment of fines and penalties imposed by regulators or government

authorities.
AG 25. When disclosing its provisions for environmental protection and remediation costs, the
undertaking shall disclose, preferably in tabular format:
(a) the provisions at the end of the reporting year;

(b) the provisions at the end of the year preceding the reporting year;
(c) the additions to provisions;
(d) the utilisation of provisions;
(e) the releases of provisions; and
(f) other changes to provisions.



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[Draft] ESRS E2 Pollution

[Draft] ESRS E2 Pollution Page 2 of 24

Interactions with other ESRS 5

[Draft] ESRS E2 Pollution Page 3 of 24

4. Pollution of air covers disclosure requirements related to the undertaking’s emissions

5. Pollution of water covers disclosure requirements related to the undertaking’s

6. Pollution of soil covers disclosure requirements related to the undertaking’s emissions

7. “Substance of concern“ covers disclosure requirements related to the undertaking’s

[Draft] ESRS E2 Pollution Page 4 of 24

as listed in the EU Chemicals Strategy for Sustainability1 (see Appendix A: Defined

8. “Enabling activities“ cover disclosure requirements related to the undertaking’s

Interactions with other ESRS

13. This [draft] Standard covers sector-agnostic disclosure requirements. Sector-specific

1 The EU’s chemicals strategy for sustainability towards a toxic-free environment:

[Draft] ESRS E2 Pollution Page 5 of 24

General, Strategy, Governance and Materiality assessment

15. This [draft] Standard provides specific pollution-related application guidance in

Policies, targets, action plans and resources

Disclosure Requirement E2-1 – Policies implemented to prevent and control

18. The principle to be followed under this Disclosure Requirement is to provide an

[Draft] ESRS E2 Pollution Page 6 of 24

21. For each policy, the undertaking shall disclose:

(a) which sub-subtopic(s) it covers:

ii. pollution of water;

iii. pollution of soil;

iv. substances of concern;

(b) which objective it pursues among the following:

i. prevention of pollution at the source;

ii. minimisation and control of pollution;

iii. avoidance, and if occurred, control of the impact of incidents;

Disclosure Requirement E2-2 – Measurable targets for pollution

23. The principle to be followed under this Disclosure Requirement is to provide an

[Draft] ESRS E2 Pollution Page 7 of 24

(e) most harmful substances in terms of:

27. The disclosure required in paragraph 22 shall also include:

Disclosure Requirement E2-3 – Pollution action plans and resources

4 DIRECTIVE 2010/75/EU OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL of 24 November

[Draft] ESRS E2 Pollution Page 8 of 24

29. The principle to be followed under this Disclosure Requirement is to provide an

i. addressing failures to comply with Do-No-Significant-Harm criteria for

ii. meeting BAT requirements in the future; and

iii. any phase out of materials/compounds that have a material negative

Disclosure Requirement E2-4 – Pollution of air, water and soil

33. The principle to be followed under this Disclosure Requirement is to provide an

[Draft] ESRS E2 Pollution Page 9 of 24

Disclosure Requirement E2-5 – Substances of concern and most harmful

39. The undertaking shall disclose specific information on the substances of

[Draft] ESRS E2 Pollution Page 10 of 24

40. The principle to be followed under this Disclosure Requirement is to provide an

Taxonomy Regulation for pollution prevention and control including enabling

44. The information to be disclosed under the upcoming pollution-related provisions of

Disclosure Requirement E2-6 – Pollution-related incidents and deposit impacts and

46. The principle to be followed under this Disclosure Requirement is to provide an

[Draft] ESRS E2 Pollution Page 11 of 24

Disclosure Requirement E2-7 – Potential financial effects from pollution-related

51. The principle to be followed under this Disclosure Requirement is to an understanding

[Draft] ESRS E2 Pollution Page 12 of 24

Appendix A: Defined terms