Disclosure focus
This disclosure asks an organisation to explain the main resources it brings into its business and how those inflows relate to its use of materials and other inputs. In practice, the report should help a reader understand what is being sourced, where it comes from, and how significant those inflows are for the organisation’s activities and value chain.
The practical focus is usually on coverage across the organisation’s relevant operations, not just a few flagship sites. A useful report will distinguish between major inflows and minor ones, show whether the picture is complete or partial, and make clear any important differences by business area, geography, or type of input.
This LRA educational guidance supports disclosure preparation. For the exact requirements, always refer to the official EFRAG source.
Before you start
A quick mental checklist before you prepare this disclosure — tick each as you settle it.
Preparation
Key datapoints to prepare
＋ Show E5-4 sub-elements (LRA working checklist)
State whether the materials are classed as critical.
Give a plain description of the materials.
Set out the main materials in the group.
Explain how they support operations.
Show how they are treated strategically.
Name the material type, such as lithium.
Report the combined mass in tonnes.
Show each item as a share of the total.
Give the mass for each material.
Show secondary material as a share of total input.
Report secondary material mass in tonnes.
Separate technical materials from biological ones.
State the intended use case.
List the CRM items.
Map each item to its source.
Identify which materials are strategic.
How to prepare it
1Set the reporting boundary first. Decide which parts of the business, products, and supply chain are in scope for this disclosure, and keep that scope consistent across the list of materials, the weight figures, and any related notes.
2Define the material categories you will use. Separate the inputs into the relevant material groupings, identify which ones are critical or strategic where applicable, and record the business role each material plays so the classification is clear.
3Gather the source records behind each entry. Use procurement files, inventory records, bills of material, production data, or other internal evidence that supports the named materials, their descriptions, their weights, and any split between primary and secondary inputs.
4Build the disclosure table from the evidence. For each material, enter the name, description, operational role, any criticality flag, the material type, the strategic label, the total weight, the share of the total, and the amount and share of secondary input where relevant.
5Explain any exclusions, estimates, or changes in method. If a material, source, or calculation approach is left out or treated differently from prior periods, note why, what changed, and how that affects comparability.
6Check the final draft against the official source before sign-off. Confirm that every required field is covered, the figures add up logically, the wording matches the underlying evidence, and the completed disclosure still reflects the source requirements without drift.
Request the data
Request the materials inflow data from Procurement / Materials Management
Translate the disclosure into an internal business question — then adapt it to your organisation's own language.
What materials came into the business in the reporting period, how much of each was used, and which of them are classed as critical, strategic, or secondary inputs?
Use your organisation’s own names for material groups, stock codes, sourcing categories, and planning terms first; then map them to the reporting fields. Keep the ask in business language the owner already uses, and check the source guidance before sign-off.
Weak request
Please provide the ESRS E5:E5-4 resource inflows data, including all required datapoints and the relevant classifications.
Why it fails: It uses framework language instead of the owner’s day-to-day terms, so the recipient has to translate the ask before they can act. It also does not say which systems, sites, material groups, or conversion rules to use, so the output is likely to be incomplete or inconsistent.
Better request
Please send the materials intake extract for [period] for [sites/business units], using your normal material codes and planning categories. Include each material’s description, what it is used for in operations, whether it is flagged as critical or strategic, total quantity, any secondary or recovered quantity, and the source system plus any conversion notes.
Industry examples
Draft your disclosure
Notes that turn data into a disclosure
LRA training templates — adapt them to your organisation, and check the official source before sign-off.
Method note
Explain that the figures are based on the organisation’s identified material list, with each item described by its operational role, criticality flag, type and strategic status, and that totals and shares are calculated from the reported weights of all listed materials, including any secondary inputs where relevant.
Context note
State what the numbers show about the organisation’s material dependence: which inputs are most important to operations, how much of the total they represent, and whether the mix is dominated by primary materials or supported by secondary sources.
Fluctuation statement
If the mix changes from one period to the next, point to shifts in the weight of individual materials, changes in the balance between primary and secondary inputs, or reclassification of materials as critical or strategic, and explain the operational reason behind the movement.
Content index entry
E5-4 Resource Inflows — [location / page] / [notes]
Download Centre
Preparation tools & forms
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Assurance readiness
For each claim, check the evidence
Evidence pack to prepare
Common reporting gaps
Figures are stated without the supporting narrative, or narrative without figures.Scope is inconsistent between the text and the numbers.The reporting boundary is left undefined.Material changes since the previous period are not disclosed.Estimates and measured values are not distinguished.Source records for the figures are not identified.
Common gaps
Mistakes to avoid when collecting the data
Wrong owner
The request goes to a team that only sees purchases or stock records, so the person who can explain the material and its use in the business is never asked.
Framework language used too early
The collector asks for answers in reporting jargon instead of the organisation’s own names for materials, uses and classifications, which makes the source data hard to find.
Scope left vague
No one states which sites, entities or product lines are in scope, so different teams pull different sets of inflows and the final file cannot be reconciled.
Wrong period basis
One team uses invoice dates while another uses receipt dates, so the same material is counted in a different period from the one used elsewhere.
Mixed counting basis
Weights from bulk deliveries, unit counts and spend-based estimates are blended together without a common basis, which makes the totals unusable.
Source labels stripped out
The original names from the warehouse, procurement or lab records are replaced with generic labels, so the audit trail back to the first record is lost.
Separate populations merged
Primary inputs, secondary inputs and different material groups are rolled into one list before checking them separately, which hides the split needed for later reporting.
Evidence trail incomplete
The file is saved without the supporting record, date stamp and reviewer sign-off, so nobody can show where each figure came from or who checked it.
Where judgement is often needed
Acquisitions and disposals during the year
Set a clear cut-off for businesses bought or sold in the period, explain whether you include them from the transaction date or for the full year, and keep the same basis across the material list, tonnage totals and percentage splits.
Different country labels for the same input
Where local naming or customs differ, map each item to one internal material category, explain the mapping rule, and disclose any country-specific exceptions so readers can see how like-for-like totals were built.
Borderline items that sit near the reporting perimeter
Decide in advance whether shared services, outsourced processing, temporary sites or other near-scope activities are counted, describe the rule used, and note any exclusions that could change the totals materially.
Choosing the measurement basis for weights
If some inputs are weighed directly and others are estimated from invoices, conversion factors or supplier data, state the hierarchy you used, identify the main estimation methods, and flag where figures are less precise.
Primary versus recovered input classification
Apply one consistent rule for separating virgin material from reused, recycled or other recovered input, explain any mixed streams, and show how you avoided double counting across the total input figure.
Grouping materials for privacy or commercial sensitivity
If naming a material or source would reveal sensitive supplier or site information, aggregate it into a broader category, explain the level of grouping, and make sure the grouped figure still rolls into the overall total.
Rounding and percentage reconciliation
Choose one rounding approach for tonnes and shares, disclose it, and explain any small differences between line items and the grand total so users can reconcile the table.
Using a common internal taxonomy across the group
When subsidiaries track inputs differently, convert them to one group-wide classification, describe the translation rules, and disclose any areas where local records could not be fully aligned.
Materiality-based exclusions from the list
If you leave out low-volume items, state the threshold or practical rule used, explain why the omission does not distort the picture, and show that the remaining items still cover the main inflows.
Timing differences between purchase and use
Pick one timing point for recognising inputs, such as receipt, consumption or period-end stock movement, explain that choice, and apply it consistently to both the total weight and the share by material.
Examples
Illustrative examples
Synthetic, written by LRA — not from a company report, not text from any standard.
Illustrative (synthetic) example — industrial machinery
We set out the main materials we rely on, showing which ones are classed as critical, how they support our operations, and whether each is treated as strategic. We also split the quantities between primary and recovered inputs, and distinguish technical from biological material uses.
Synthetic example for training only; figures are internally consistent and illustrative.
Illustrative (synthetic) example — consumer electronics assembly
We list the key substances and feedstocks used in our products and operations, note their business role, and identify which ones we treat as critical or strategically important. We also show the split between new and secondary inputs, plus the share of technical and biological material use.
Synthetic example for training only; figures are internally consistent and illustrative.
How companies report E5-4 in practice
Real reports where this topic is disclosed. These are report practice, not exact disclosure templates to copy.
Bakkafrost P/F
Food Production — Animal Source · Faroe Islands · 2025
Bakkafrost P/F’s Integrated Annual Report 2025 provides a numeric value for the total weight of key materials sourced, specifying marine raw materials at 383,998 tonnes and agricultural materials at 327,068 tonnes on page 128. The report also mentions the total weight of packaging materials as 6,227 tonnes on the same page. However, there is no quotable narrative evidence found in the report regarding processes to identify and assess material climate-related or biodiversity impacts, risks, or opportunities, nor detailed descriptions of supplier engagement or sustainability policies beyond brief mentions on pages 73, 74, and 106.
Ferrovial SE
Construction and Engineering · Netherlands · 2024
Ferrovial SE's 2024 Integrated Annual Report provides a specific quantitative disclosure on materials purchased by weight or volume, reporting 77,909 tonnes of bitumen purchased by Ferrovial Construction, representing 100% of that segment's bitumen use (p.306). The report also mentions efforts to increase the use of secondary, sustainable, and renewable resources, though this is presented as related context rather than a clear disclosure (p.112). There is no clear information on the use or significance of biological materials, with only an unclear note that they are not significant in Ferrovial’s purchases (p.306), and no other quotable evidence was found in the report regarding this disclosure.
Italgas S.p.A.
Gas Utilities · Italy · 2025
Italgas S.p.A.'s 2025 Integrated Annual Report provides some related context on procured materials and their categorisation, noting total material inputs of 8,139 tonnes divided into metals, plastics, electronic materials, and others (p.93, p.144). However, the report does not clearly disclose specific data points related to this disclosure, with several narrative items not found or unclear. Overall, while there is some information on material procurement and value chain context, a clear and comprehensive disclosure on this topic is not evident in the report.
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Scenarios to work through
A manufacturer uses aluminium, copper and recycled plastic in its products. The reporting team has the purchase records, but the operations team has not yet explained how each input supports production or whether any of them should be treated as strategically important.
QHow should the team decide what to include for each input before the disclosure is signed off?
Reveal model answer →Hide answer ↑They should name the main inputs used, give a plain description of each one, and explain the part each plays in the business process. If any input is treated as strategically important, that status should be identified clearly and the material type should be stated in ordinary business terms, with the classification kept consistent with the organisation’s own assessment.
Why this matters · List the main inputs, describe them in business language, and explain why each one matters to operations.
A food producer has mixed plant-based ingredients with packaging materials in one procurement file. The sustainability team is unsure whether to present all of them together or separate the biological inputs from the non-biological ones.
QWhat judgement should be made about grouping the inputs for reporting?
Reveal model answer →Hide answer ↑The team should separate biological inputs from other kinds of materials where that distinction is relevant to the organisation’s resource profile. The presentation should make it clear which inputs fall into each group and should explain the use case for each group in a way that a reader can follow without specialist terminology.
Why this matters · Where the nature of the input differs in a meaningful way, split it into clear groups and explain the use of each group.
A company has calculated that it used 1,200 tonnes of materials in total during the year. Of that, 300 tonnes were recycled feedstock and 900 tonnes were newly extracted materials, but the draft note only shows the recycled figure and its percentage.
QWhat should the preparer check before finalising the note?
Reveal model answer →Hide answer ↑They should make sure the total input is shown, then set out the amount for each material or material group and the share each one represents of the total. In this case, the recycled feedstock would be 300 tonnes and 25% of total input, while the other materials would be 900 tonnes and 75%, so the figures must add up consistently.
Why this matters · Show the total and the split by material so the percentages and tonnes reconcile cleanly.
A business buys some components directly from suppliers and also uses recovered material from its own production scrap. The draft disclosure mentions the recovered material, but it does not say how much of the overall input it represents or how it fits into the wider material mix.
QWhat should the preparer do when deciding whether the secondary material information is complete enough?
Reveal model answer →Hide answer ↑They should state the amount of secondary material in tonnes and show what proportion of the total input it makes up. The disclosure should let a reader see how much of the organisation’s material intake comes from recovered sources, alongside the rest of the input mix, without leaving the figure isolated from the total.
Why this matters · If recovered material is used, show both its weight and its share of the full input picture.
Framework references
Related framework references
How this disclosure maps across the major reporting frameworks.
Primary
Related & explore
FAQ
Questions this page answers
How do I use the E5-4 page to prepare a draft disclosure on resource use and circular economy?+−
Start with the plain-language explainer, then work through the step-by-step preparation section and the datapoints list. The page is designed to help you turn source data into a draft, not to act as an official standard.
What data do I need to collect for E5-4 before I can draft the disclosure?+−
The page lists the datapoints to prepare, including the key input list, material overview, operational use, criticality flag, material type, strategic status, total material weight, weight by item, share of total, secondary input weight and share, material origin split, intended use, CRM register, strategic materials list, and source traceability.
How should I set the scope and methodology for the E5-4 disclosure using this page?+−
Use the step-by-step preparation section to decide what sits in scope and how each datapoint will be compiled. The page also points you to source traceability, which helps you show where the numbers and classifications came from.
Who should own the E5-4 data collection and sign-off process?+−
The page is useful for sustainability or ESG managers, HR or data owners, and assurance reviewers, so ownership should sit with the people who can source, check, and explain the underlying data. Use the workbook and evidence pack to make responsibilities clear and support sign-off.
What evidence pack do I need to make E5-4 assurance-ready?+−
The page includes an evidence pack with five items for assurance readiness. Use it alongside the six assurance claims to verify so you can link each claim to the relevant evidence.
What are the six assurance claims in the E5-4 page and how do I use them?+−
The page says there are six assurance claims to verify, each with a claim, risk, and evidence angle. Use them as a checklist to test whether your draft is supported and whether the evidence pack is complete.
What are the common reporting gaps or mistakes to avoid in E5-4?+−
The page lists common reporting gaps and mistakes so you can check for missing datapoints, weak traceability, or inconsistent treatment before drafting. It is meant to help you spot issues early rather than after review.
How do I use the Prep & Assurance workbook for E5-4?+−
The Download Centre includes a Prep & Assurance workbook in .xlsx format. Use it to organise the datapoints, track preparation, and support assurance readiness before you turn the data into a draft.
What is the printable Library Card PDF for E5-4 used for?+−
The Download Centre includes a printable Library Card in PDF format. It is a practical companion for working through the disclosure, especially if you want a quick reference while preparing the draft and evidence pack.
How do I turn the E5-4 data into a draft narrative and content index line?+−
The draft-output section gives visualisation ideas, narrative starters, and a content-index line. Use those prompts to convert the prepared datapoints into a readable draft without having to invent the structure yourself.
More questions this page can help with
E5-4 disclosure: what should I check before I start collecting the material weight and secondary input data?How do I use the E5-4 source traceability field to support assurance?What does the E5-4 material origin split help me show in the draft?How do I decide whether a material should be marked as critical or strategic in the E5-4 workbook?What should I include in the CRM register for the E5-4 disclosure?How do I build an evidence pack for E5-4 from the workbook and source documents?What are the best visualisation ideas for an E5-4 circular economy disclosure draft?How can I use the 'From company reports' table on the E5-4 page without treating it as a template?What is the difference between total material weight and weight by item in the E5-4 datapoints list?How do I use the synthetic illustrative example on the E5-4 page safely in my own draft?
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