A narrow forest trail winds through a dense, lush rainforest with towering trees and thick vegetation surrounding the path.

Rainforest conservation in ESG reporting 

Obligations and requirements in ESG reporting and the importance of nature conservation.

A guide to ESG reporting: What are the requirements for companies?

E stands for Environment, S for Social and G for Governance: this is what the acronym ESG stands for. ESG is a voluntary framework that enables companies to assess their sustainability performance through ESG reporting. 

Nature and rainforest conservation can be an important part of an ESG report and meet the necessary guidelines and criteria. However, the protection of our tropical forests and remaining wilderness is far more than a mere formality in ESG reporting or a CSR activity.

ESG reporting in figures: between expectations and significant opportunities

75 per cent

the investors

would invest more in companies that protect the climate

80 per cent

of people

Support companies that are genuinely committed to wilderness conservation

70 per cent

the customers

Question sustainability claims before making a purchase

The importance of ESG: What you need to know

Specific criteria apply to the three areas of environment, social issues and corporate governance, which you can use to measure your company’s sustainability performance:

  • E – Environment: climate action, emissions, resource use and biodiversity 
  • S – Social: working conditions, human rights and inclusion 
  • G – Governance: transparency, ethics and compliance

Is there an ESG obligation, and who is affected?

There is no such thing as an ‘ESG obligation’. Rather, there is a reporting obligation (EU Directive) under the CSRD (Corporate Sustainability Reporting Directive). The timetable for when different companies must comply with this obligation is set out in stages: 

  • From 2024 (report for 2025): For companies that were already covered by the Non-Financial Reporting Directive (NFRD).
  • From 2025 (report for 2026): For all large companies that meet the CSRD criteria (two out of three: more than 250 employees, €40 million in turnover, €20 million in total assets).
  • From 2026 (report for 2027): For capital market-oriented small and medium-sized enterprises (SMEs).


In addition to the general reporting obligation, there are guidelines and criteria according to which the sustainability assessment must be carried out: 

  • CSRD & ESRS: From 2024/25, large and capital market-oriented companies in the EU will be required to report in accordance with the European Sustainability Reporting Standards (ESRS). Of particular relevance: ESRS E4 Biodiversity and Ecosystems.
  • EU Taxonomy: classifies economic activities according to environmental sustainability.
  • EUDR (EU Deforestation Regulation): From 2025, products such as soya, beef, palm oil, cocoa, coffee and timber must be verifiably deforestation-free.

CSRD vs. ESG: What is the difference? 

Put simply: ESG describes the criteria, whilst the CSRD makes reporting on them mandatory. For the companies concerned, ESG reporting is therefore no longer voluntary.

ESG (Environmental, Social, Governance) is a voluntary framework for assessing a company’s sustainability performance. 

The CSRD is a binding EU directive that requires companies to report on their sustainability activities. It sets out how and on what a company must report, thereby establishing a uniform and legally prescribed standard.

Act responsibly.

Customers, staff and investors expect the companies whose services and products they buy, for whom they work or in which they invest to act responsibly and sustainably. By incorporating nature conservation into your business, you are not only protecting the last remaining wilderness areas on our planet; you are also taking responsibility.
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Why should companies protect rainforests?

Protecting existing tropical and temperate rainforests is one of the most effective ways of preserving biodiversity and stabilising the global climate. Companies that protect rainforests today are investing directly in the stability of ecosystems, which in turn keep our economy running.

Protecting the rainforest means protecting biodiversity

Rainforests are not only our most important allies in the fight for greater climate stability:

  • they generate rain,
  • purify the air and water, and
  • store CO2.

They are also the most species-rich ecosystems on our planet. As nature’s vast treasure troves, they are home to an unrivalled diversity of animals, plants and micro-organisms. If a rainforest area is destroyed, this biodiversity – which has developed over millennia – is irretrievably lost.

Biodiversity as an economic factor

For businesses, this loss of biodiversity is far more than just an environmental problem: it is a significant business risk throughout the entire value chain. Over 50 per cent of global gross domestic product (GDP) depends directly or indirectly on stable ecosystems. Functions such as plant pollination and natural pest control act as ‘dividends from nature’: they form the basis for raw materials, functioning supply chains and markets.

Insect decline in Germany alone causes losses of around 3 billion US dollars a year due to crop failures.

This example clearly shows that biodiversity is a key economic factor.

Protecting it is not at odds with economic activity, but is in fact a necessary prerequisite for it. Protecting the rainforests is therefore a direct investment in the economic stability of businesses and their entire value chain.

5 reasons why rainforest conservation should be part of the strategy


Rainbow stretches over forested mountains and lake shoreline with evergreen trees under overcast sky.
1. Protecting rainforests ensures climate stability: Rainforests store enormous quantities of CO2, thereby stabilising the global climate. This forms the basis for economic planning and, consequently, investment security, as well as a (sustainable) supply of raw materials. 
Young brown monkey with white facial markings perched among green foliage and branches in forest.
2. Lower risks thanks to old-growth forest protection: Protecting existing rainforests is more cost-effective and sensible than having to cover the follow-on costs – running into billions – of climate change, drought and species loss.
Aerial view of a dense forest canopy showing various shades of green tree and shrub tops.
3. Learning from nature: Many innovations, new technologies and products are inspired by nature and its biodiversity. Protecting rainforests ensures long-term access to this vital source of knowledge and inspiration. 
Small spider with grey-brown patterned body and blue eyes perched on a bright green leaf.
4. Genuine sustainability is a competitive advantage: more and more customers, investors and employees are favouring companies that operate responsibly. Protecting the rainforest therefore strengthens brands and market position.
Multiple people in colourful jackets place their hands together in a symbol of unity and teamwork.
5. Nature conservation as a bridge for partnership: Joint conservation projects and collaborative initiatives foster cooperation between states, organisations and civil society. This helps to stabilise the political landscape, economic relations and global supply chains.

€1

Donations

protects

1 m2

Rainforest

forever and binds

60 kg

CO2

permanently as forest biomass.

Those who protect the forest protect the economy

Rainforest conservation is not just a ‘nice-to-have’; it affects every sector – either directly or indirectly through the climate, markets and regulatory requirements.
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How companies can incorporate rainforest conservation into their ESG reporting

Protecting rainforests is not only environmentally beneficial, but can also be strategically integrated into your ESG reporting by meeting specific criteria in the environmental (E) and social (S) categories:

Forest conservation in the context of reporting: Specific examples and ESG criteria

  • CSRD / ESRS E4: Identify forest conservation as a specific measure for biodiversity and ecosystem services.
  • EU Taxonomy: Rainforest conservation counts towards Environmental Objective 6 (‘Biodiversity & Ecosystems’).
  • GRI 101: Transparently report on positive impacts outside the organisation’s own supply chain.
  • CDP & TNFD: Reporting on forest conservation as part of risk management and as a nature-based solution.
  • SDGs: A clear link to SDG 15 ‘Life on Land’, SDG 13 ‘Climate Action’ and SDG 6 ‘Clean Water’.
  • Contribution Claim: Companies can credibly communicate their contribution to biodiversity conservation – without getting drawn into debates about offsetting.
By protecting the rainforest, you can make a tangible difference whilst also ensuring your reporting is relevant – both for mandatory standards such as the CSRD and for voluntary frameworks.

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