Why and how to read this report

The report targets businesses, investors, and policy or framework developers concerned with the adequacy of corporate environmental disclosures. It explains how disclosure practices focused mainly on financially material impacts hinder the assessment of cumulative environmental pressure and nature-related risks. It introduces science-based principles and tools to improve the reliability and decision-usefulness of reported data.

Chapter 1: A planet under pressure

Using the planetary boundaries framework, the report shows that six of nine Earth system boundaries have been exceeded. Human activity has transformed over 70% of land and more than 66% of oceans, with humans and livestock accounting for more than 96% of mammal biomass. These changes undermine ecosystem services essential for economic stability, increasing systemic risks for businesses and investors.

Chapter 2: Every little bit (of impact) counts

This chapter demonstrates that small, financially immaterial environmental impacts accumulate across locations and time, creating large-scale risks. Current disclosure approaches, including double materiality, often exclude impacts that are material to the environment. This weakens risk assessment and comparability. The report stresses that environmental materiality must be treated with equal importance to financial materiality.

Chapter 3: Absolute data is actionable data

Relative metrics, such as emissions intensity, are insufficient in a world of absolute ecological limits. Absolute data on emissions, water use, and land use are required to assess cumulative pressure, set credible targets, and reduce greenwashing risks. Absolute measures allow aggregation across firms and sectors, enabling system-level assessment aligned with planetary boundaries.

Chapter 4: Location-specific information is essential

Most environmental impacts are context dependent. Identical levels of water extraction or land use can have vastly different consequences depending on local ecological conditions. The report emphasises asset-level, location-specific disclosures as essential for understanding biodiversity loss, water stress, and land degradation risks, and for developing effective mitigation strategies.

Chapter 5: Where, what, and how much – environmental disclosures that enable radically improved assessment of impacts and risks

Effective impact assessment requires data on where impacts occur, what environmental pressures are involved, and how much pressure is exerted in absolute terms. This structure enables the use of robust analytical tools, including geospatial and footprinting methods. The report highlights the need for asset-level reporting, particularly in primary and extractive sectors.

Chapter 6: Letting environmental science inform prioritisation of disclosures

The report introduces Essential Environmental Impact Variables (EEIVs), a set of 15 science-based disclosures grounded in planetary boundaries. EEIVs focus on what is materially relevant for the environment rather than firm-defined priorities. They largely align with ESRS, GRI, and TNFD requirements, improving transparency and comparability without materially increasing reporting burden.

Chapter 7: Earth system impact analysis – Estimating global effects from local impacts

The Earth System Impact (ESI) score integrates asset location with carbon emissions, water use, and land use to estimate global Earth system impacts. It captures interactions between climate, land, and water boundaries and shows that assets with low carbon intensity may still have high overall environmental impact. ESI supports corporate strategy, investor engagement, portfolio assessment, and lending decisions.

Chapter 8: From follower To forerunner – Business as changemakers

The report argues that businesses and investors are central to the transition towards operating within planetary boundaries. Improved disclosures can fill information gaps where regulation is weak. However, improved data alone is insufficient; organisations must act on better assessments by adjusting operations, investments, and engagement practices to reduce cumulative environmental harm.

Key takeaways by stakeholder type

For businesses, disclosing only financially material impacts risks omitting cumulative pressures that drive systemic risks. Absolute and location-specific disclosures improve target-setting, risk assessment, and alignment with planetary boundaries. EEIVs and ESI provide practical tools to guide data collection and strategic decision-making. For investors, reliance on company-defined materiality can lead to underestimation of nature-related risks. Encouraging absolute, asset-level disclosures and science-based prioritisation improves comparability, transparency, and portfolio risk assessment. Tools such as ESI support more informed engagement and capital allocation. For policymakers and framework developers, the report highlights the need to promote disclosures based on environmental materiality rather than self-determined priorities. Encouraging absolute, location-specific data aligned with planetary boundaries enables credible assessment of cumulative impacts and supports more effective climate and nature-related policy design.