European regulators should encourage firms disclosing under the Corporate Sustainability Reporting Directive (CSRD) to adopt targets validated by the Science-Based Targets for Nature (SBTN), according to the World Wide Fund for Nature (WWF). Alignment between the two means that use of SBTN guidance will ensure firms comply with CSRD’s disclosure requirements on nature targets, said the WWF in a new report. It would also improve the credibility and comparability of firms’ targets, contributing to the EU 2030 nature objectives and the European Green Deal, as well as to organisations’ long-term nature resilience and financial stability. CSRD requires firms to set and disclose targets related to pollution, water and marine resources, biodiversity and ecosystems, and resource use and circular economy. Large firms must report under CSRD from January 2025, with smaller firms following in three subsequent waves. SBTN published updated guidance earlier this year based on feedback from the 250 organisations in its Corporate Engagement Programme. The WWF said EU regulators should not only recommend the setting of SBTN-validated targets, but also establish a regulatory methodological framework to ensure credible and comparable nature targets, aligned with international commitments, such as the Kunming-Montreal Global Biodiversity Framework and the Paris Agreement. They should also harmonise EU directives and standards by defining a shared vision for environmental data, metrics and targets. “Future resilience and competitiveness rely on credible and comprehensive nature targets, and delaying this process increases environmental damage and financial stability risks,” said Sebastien Godinot, Senior Economist at WWF EU.
