Sustainability Reporting, ESRS E5 and By-product Management

Jens S?gaard Jacobsen mentioned the EU's Corporate Sustainability Reporting Directive (CSRD) in his recent post. It's great to see the engagement and questions that came from this. We wanted to provide our network more insight on the relationship of this directive with by-product management processes.

What is the EU CSRD Directive 2022/2464?

The EU Corporate Sustainability Reporting Directive (#CSRD) 2022/2464 expands sustainability reporting requirements for companies in the EU. It emphasizes the disclosure of non-financial and diversity information to enhance transparency and promote responsible business practices, particularly in the areas of environmental, social, and governance (#ESG). A transparent understanding of a company's impact on sustainability is a significant step forward in corporate performance reporting.

The CSRD mandates the use of European Sustainability Reporting Standards (#ESRS).

What is ESRS E5?

ESRS E5 is one of the sector-agnostic environmental standards focusing on resource use and circular economy. It requires companies to disclose information on their resource inflows and outflows, waste management and circular economy practices.

How can by-product management support compliance with these new EU rules?

Effective management of by-products demonstrates a company's commitment to resource optimisation and circularity. ESRS E5 requires companies report material inflows and outflows, including sourced and produced by-products. This transparency of policies and actions helps companies understand and communicate how they are supporting the transition away from linear models towards more sustainable, circular business models. In short, effective by-product processes support circular economy reporting in ESRS E5.

How can you optimise your by-product management?

As your by-product expert, MBP Solutions has more than two decades of experience in developing processes embracing the principles of sustainability and the circular economy. Some of our current best practices that align with ESRS E5 are:

• Sustainability Reporting: How are you reporting on your by-product circularity? What is the current efficacy of your streams? When managing partners' by-products, MBP Solutions supports with data needed for partner ESRS E5 reporting and offers expertise to reach their sustainability goals.
• Responsible Business Practices: Is the appropriate handing of by-products in place? What are the compliance regulations? Navigating the complexities of by-product management might hinder businesses from achieving optimal value from their by-products. With in-house global operations, application expertise and legal compliance, MBP Solutions ensures optimal applications and adherence to regulatory requirements. Our focus is to promote the responsible use of resources.
• Outsourced Management of By-product (OMBP) Service: This comprehensive service aligns with the objectives of ESRS E5 by supporting client ESG reporting. Applying our unique knowledge of product applications, sales, legal compliance and global supply chain management, this resource management service delivers confidence and reliability for a sustainable and transparent industry.

MBP Solutions is committed to collaborating with clients to achieve their sustainability goals, reduce waste and create new value from their by-products, ultimately enhancing the circular economy and promoting responsible business practices.

We stand ready to support in navigating the complexities of sustainability reporting as it relates to by-product management and foster a more sustainable and prosperous future.

How can outsourcing your by-product management add value to your operations?

Have questions about ESRS E5 in relation to your by-products? Get in touch to discuss.

Interested in reading the EU CSRD 2022/2464? https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A32022L2464

Interested in reading the EU ESRS E5? https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A32023R2772&qid=1721122787230

#ByProducts #ByProductManagement