Disclosure focus
This disclosure asks an organisation to explain where its activities, products or services have significant effects on biodiversity, and to describe those effects in a way that is meaningful to readers. The focus is not just on whether impacts exist, but on identifying the parts of the business where they are most material and what kinds of biodiversity-related effects they create.
In practice, the emphasis is on coverage across the organisation’s relevant operations, not only on a few well-known or flagship sites. The report should help users understand the main locations, activities or value-chain touchpoints where biodiversity impacts are significant, so they can see the breadth and concentration of the issue rather than a selective picture.
This LRA educational guidance supports disclosure preparation. For the exact requirements, always refer to the official GRI 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 GRI 304-2 sub-elements (LRA working checklist)
Check whether the business’s direct and indirect effects on biodiversity involve shifts in ecological processes beyond the normal range of variation.
Check whether the business’s direct and indirect effects on biodiversity arise from building or operating factories, mines, or transport links.
Check whether the business’s direct and indirect effects on biodiversity come from changing natural habitat into another use.
Check whether the business’s direct and indirect effects on biodiversity involve bringing in invasive species, pests, or disease-causing organisms.
Check whether the business’s direct and indirect effects on biodiversity involve contamination or other forms of pollution.
Check whether the business’s direct and indirect effects on biodiversity lead to fewer species.
For each material direct or indirect effect, note how long it lasts, whether it is beneficial or harmful, and whether it can be reversed.
For each material direct or indirect effect, note how much area is affected, whether it is beneficial or harmful, and whether it can be reversed.
For each material direct or indirect effect, note which species are affected, whether it is beneficial or harmful, and whether it can be reversed.
For each material direct or indirect effect, note whether it can be reversed or is permanent, and whether it is beneficial or harmful.
How to prepare it
1Set the reporting boundary first. Decide which sites, projects and activities are in scope, then separate impacts linked to your own operations from those arising through other parts of the value chain where they are still material.
2Define what you will treat as a significant biodiversity impact. Use a consistent internal test so you can identify whether the issue comes from land take or infrastructure, emissions or discharges, introduced species or disease, species decline, habitat change, or wider shifts in ecological functioning.
3Gather support for each impact type. Pull together site records, incident logs, environmental studies, monitoring results, project files and any other source that shows the species involved, the area affected, how long the effect lasted, and whether it can be undone.
4Write the disclosure in a way that covers both harmful and beneficial effects. For each material impact, state the nature of the effect and include the relevant facts on species affected, the size of the area, the time period, and reversibility or permanence.
5Explain any exclusions, estimates or changes in method. If you leave out an impact, narrow the scope, or change how you assess significance from one period to the next, record the reason and the effect on comparability.
6Check the final wording against the source material and your evidence pack. Make sure every required impact theme is addressed, the narrative matches the underlying records, and nothing important has been omitted or overstated.
Request the data
Request the biodiversity impact evidence from site and project owners
Translate the disclosure into an internal business question — then adapt it to your organisation's own language.
Which of our sites, projects, products or transport activities have had material effects on biodiversity, and what is the nature, scale, timing and reversibility of those effects?
Use your organisation’s own site, project and incident language first, then map it to the biodiversity impact categories in the reporting pack. Ask for the evidence in the terms teams already use internally, and only translate into the reporting labels at the end. This is a training template; adapt it to your organisation and check the source material before sign-off.
Weak request
Please provide the biodiversity disclosure data for the year, including all significant direct and indirect impacts and the related categories.
Why it fails: This uses reporting language that many operational teams will not track day to day, so it is hard to answer quickly and consistently. It also does not say which sites, systems, records or internal terms to use, so the response may be incomplete or hard to verify.
Better request
Please send the biodiversity impact evidence for [site/project/asset] during [reporting period]. Use your normal site or project terms first, and include any habitat, species, pollution, invasive species, land take or transport-related issues, plus the area affected, duration, reversibility and supporting records.
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 the basis used to decide what counts as a significant biodiversity effect, including how direct and indirect effects were identified and how each impact was grouped for reporting.
Context note
Set out what the figures mean in practice by linking the reported effects to the relevant activities, affected species, land area, time period, and whether the outcome is beneficial, harmful, temporary, or lasting.
Fluctuation statement
If the pattern changed from the prior period, note whether this was driven by new sites, altered operations, remediation, better data, or a change in how impacts were assessed and classified.
Content index entry
GRI 304-2 Significant impacts of activities, products and services on biodiversity — [location / page] / [notes]
Download Centre
Preparation tools & forms
Professional preparation tools for GRI 304-2 — free with an LRA Community membership. Register once (it's free) and every download unlocks, together with the Disclosure Library, templates and the LRA AI-assistant.
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Assurance readiness
For each claim, check the evidence
Evidence pack to prepare
Common reporting gaps
The information is presented without a date or as-at point.The scope or boundary of the statement is left undefined.Key terms are used inconsistently across the report.Material changes since the previous period are not disclosed.Assertions are made without supporting detail or a source record.Boilerplate is used that does not actually answer what is asked.
Common gaps
Mistakes to avoid when collecting the data
Wrong owner
Teams often ask the wrong site, project, or function to describe the biodiversity effect, so the evidence comes from people who do not hold the operational records.
Framework words first
People send requests using framework labels instead of the organisation’s own activity names, which leaves local teams unsure which plant, mine, route, or product line they should review.
No clear boundary
The data pull starts before anyone has fixed which sites, projects, products, or transport assets are in scope, so the same impact is counted in one place and missed in another.
Wrong time basis
Records are gathered for the wrong reporting period or at a different cut-off date from the rest of the pack, which makes the biodiversity evidence inconsistent with the rest of the dataset.
Mixed counting basis
One team reports by site, another by incident, and another by species or area, so the figures cannot be compared or rolled up cleanly.
Source labels lost
Original file names, register codes, map references, or log IDs are stripped out during collection, making it hard to trace each claim back to the first record.
Separate groups merged
Impacts that should stay split by species, location, or impact type are combined into one bucket, which hides the detail needed to explain what was affected.
Evidence trail missing
The pack is assembled without dates, authors, version history, or sign-off notes, so no one can show who checked the source or when it was approved.
Where judgement is often needed
Set the reporting perimeter after a buy-in or sale
If a site, plant, mine or transport asset changed hands during the period, explain whether you include impacts only while it was under your control or for the full year, and state the cut-off you used.
Use local impact labels where country terms differ
Where national rules or local ecology practice use different names for the same kind of effect, map them to one internal description and disclose the mapping so readers can see how like-for-like cases were grouped.
Decide how to treat borderline locations and shared influence
For species, habitats or areas that sit partly inside and partly outside your operational footprint, explain whether you counted them in full, in part, or not at all, and why that approach best matches your site records.
Choose one timing basis for the period under review
If impacts were observed, estimated or modelled at different points in the year, state whether you used the date of occurrence, the date of detection, or a year-end view, and keep that basis consistent across sites.
Explain when you relied on estimates rather than field counts
Where direct measurement was not available, disclose the method used to estimate the effect, the main assumptions behind it, and any material uncertainty that could change the result.
State how you handled small numbers and rounding
If rounding or suppression changes the apparent size of an impact, say what rounding rule you applied and confirm that the rounded figures still reflect the underlying totals without overstating or understating the effect.
Aggregate sensitive location detail where needed
If naming a site, species or area would create a privacy, security or conservation risk, group the information at a higher level and explain the level of aggregation so the nature of the impact is still understandable.
Separate direct effects from knock-on effects consistently
When the same activity can affect biodiversity both at the point of operation and through wider supply or use patterns, explain the rule you used to classify and avoid double counting the same impact.
Examples
Illustrative examples
Synthetic, written by LRA — not from a company report, not text from any standard.
Illustrative (synthetic) example — Food processing
This is a synthetic example of how we might describe our biodiversity impacts for a food-processing group with a factory, a quarry-linked logistics route, and nearby waterways. - Our main negative effects come from land take for the plant and access roads, discharge to water, and the spread of a plant pest through freight movements; we also note a smaller positive effect from restoring a riparian strip, which supports two bird species and one amphibian species. - In total, 18 hectares were affected: 12 hectares were converted to built or hard-surfaced use, 4 hectares were influenced by pollution, and 2 hectares were improved through habitat recovery; the main effects lasted 3 years, 5 years, and 2 years respectively, and the land-take and pollution effects are only partly reversible, while the restoration work is reversible if maintained. - We also saw a temporary drop in one pollinator species and one wetland plant species, plus a short-term shift in local nutrient cycling beyond normal seasonal variation, with the latter expected to settle back once controls remain in place.
Synthetic illustration only. It shows how a reporter could summarise the main pressures, the species and area affected, how long the effects lasted, and whether each effect can be undone.
Illustrative (synthetic) example — Mineral extraction
This is a synthetic example of how we might describe biodiversity impacts for a mining group with an open pit, haul roads, and a processing site. - Our negative impacts include habitat conversion for the pit and roads, dust and runoff affecting nearby habitats, and the introduction of an invasive grass on disturbed ground; we also recorded reduced numbers of one reptile species and two grassland plant species, plus changes in water flow and soil movement beyond the normal local pattern. - Across the reporting area, 26 hectares were affected: 20 hectares through land conversion, 5 hectares through pollution, and 1 hectare through invasive spread; the main effects lasted 8 years, 4 years, and 6 years, and the land conversion is not realistically reversible, while the pollution and invasive-species effects can be reduced over time. - We also identified one positive outcome from rehabilitation works, which improved habitat for three bird species on 3 hectares, although that benefit is still temporary and depends on ongoing management.
Synthetic illustration only. It shows how a reporter could cover direct and indirect effects, including species, area, duration, and whether the impacts can be reversed.
Company reports
How companies report GRI 304-2
Real reports where this topic is disclosed. These are report practice, not exact disclosure templates to copy.
Cogna Educação S.A.
Education Services · Brazil · 2024
Cogna Educação S.A.’s 2024 Relato Integrado report covers recognition of the importance of understanding and mitigating both direct and indirect biodiversity impacts, as noted on page 58. The report also discusses efforts to improve the efficiency of natural resource management practices on the same page. However, several narrative items related to specific disclosures, such as those under sections (a-ii), (a-iv), (a-v), and all items under (b), are not found or clearly addressed in the report.
Zydus Wellness Limited
Food Production — Agricultural · India · 2025
Zydus Wellness Limited’s Integrated Annual Report 2024-25 provides reported values related to indirect economic impacts and infrastructure investments on page 51, highlighting social and relationship capital (p.51). The report also addresses significant impacts on biodiversity outside protected areas and waste-related impacts, with references to natural capital management on the same page (p.51, 75). However, several narrative items concerning other aspects of indirect economic impacts and community effects are not found or unclear in the report.
Firstsource Solutions Limited
Professional Services · India · 2025
Firstsource Solutions Limited’s ESG Report FY 2024-25 addresses the impact of its activities on biodiversity, stating on page 212 that significant impacts are not applicable as it is a service company. The report also discusses the significant impact on business operations and financial performance on page 193, and outlines reduction initiatives supporting SBTi and Net Zero goals, including energy management efforts, on page 238. However, the report lacks information on several narrative items such as specific biodiversity impact details beyond the service classification, and other environmental impact disclosures indicated as not found.
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Check your understanding
Scenarios to work through
A manufacturer is reviewing a new plant built beside a wetland, and the environmental team has also logged higher runoff from the site during heavy rain. The draft note currently mentions the plant location but not the runoff.
QShould the write-up cover both the site’s physical footprint and the pollution pathway when describing the main biodiversity effects?
Reveal model answer →Hide answer ↑Yes. The description should bring together the main ways the activity affects nature, including the land take or disturbance from the facility itself and any pollution-related effect that could harm nearby habitats or species. If both matter, both should be explained in plain language.
Why this matters · Cover each material pathway to nature, not just the most obvious one.
A logistics business has expanded a road depot and added a new access route through an area where a protected bird species nests. The team is unsure whether to focus only on the depot land or also on the transport link.
QWhen summarising the impact, should the preparer include the transport route as part of the biodiversity story if it is a meaningful source of harm?
Reveal model answer →Hide answer ↑Yes. If the transport link is part of the significant effect on biodiversity, it belongs in the explanation alongside the depot itself. The account should describe the direct and indirect effects in a way that shows how the business activity, not just the main site, contributes to the impact.
Why this matters · Include connected infrastructure where it is part of the significant effect.
A food producer has identified a likely spread of a non-native pest through its supply chain, and the issue could affect local plant life over several seasons. The draft disclosure only says there is a biodiversity concern, without naming the mechanism or how long it may last.
QShould the preparer spell out the type of biological pressure and the expected duration rather than leaving it as a general concern?
Reveal model answer →Hide answer ↑Yes. The narrative should identify the nature of the impact, such as the spread of non-native organisms, and explain whether the effect is short-lived or likely to persist. That helps readers understand what is happening and how serious the issue may be.
Why this matters · Name the mechanism and the likely time profile of the impact.
A quarry operator has restored part of a worked area, but another section remains altered and the habitat change is not expected to return to its former state. The team is deciding whether to describe the effect as fully reversible because some restoration work has started.
QHow should the preparer treat reversibility when the impact is only partly recoverable?
Reveal model answer →Hide answer ↑The write-up should distinguish between the part that can recover and the part that is likely to remain changed. If the effect is not fully recoverable, it should not be presented as wholly reversible; the explanation should reflect the actual degree of recovery expected.
Why this matters · Be precise about whether the impact can be undone, partly undone, or not undone at all.
Framework references
Related framework references
How this disclosure maps across the major reporting frameworks.
Primary
Related & explore
Operational sites owned, leased, managed in, or adjacent to, protected areas and areas of high biodiversity value outside protected areas → Guide ✓Habitats protected or restored → Guide ✓IUCN Red List species and national conservation list species with habitats in areas affected by operations → Guide ✓Show all 3 related disclosures →
FAQ
Questions this page answers
For GRI 304-2, what data points should I gather before I start drafting the disclosure?+−
The page says to prepare data on infrastructure biodiversity impacts, pollution-related impacts, invasive species impacts, species decline impacts, habitat conversion impacts, ecological process changes, affected species, impact area size, impact duration and impact reversibility. Use that list as your starting checklist before you draft anything.
How do I use the step-by-step 'how to prepare' section for GRI 304-2 in practice?+−
Use it as a working sequence for scoping the disclosure, collecting the relevant data, and turning that into a draft. The page is designed as a practitioner guide, so it helps you move from raw information to a report-ready narrative.
What should I include in the evidence pack for GRI 304-2 if I want to be assurance-ready?+−
The page includes an evidence pack with five items to support assurance readiness. Use it alongside the five assurance claims so you can show what was checked, what evidence was used, and where the underlying data came from.
What are the five assurance claims on the GRI 304-2 page, and how do I use them?+−
The page says there are five assurance claims to verify, each linked to a claim, risk and evidence view. Use them to test whether your disclosure is supported, complete and traceable before it goes to review.
What are the common reporting gaps or mistakes for GRI 304-2 that I should avoid?+−
The page lists common reporting gaps and mistakes to help you spot weak points before submission. It is useful for checking whether your draft is missing key datapoints, unclear on scope, or not backed by enough evidence.
How can I use the synthetic example disclosures on the GRI 304-2 page without copying them into my report?+−
The examples are there to show how a finished disclosure can look, including a quantitative table where relevant. Treat them as a formatting and drafting aid only, and replace the synthetic content with your own internally consistent data.
What should the draft output for GRI 304-2 look like on this page?+−
The page gives draft-output ideas including visualisation options, narrative starters and a GRI content-index line. Use those to turn your prepared data into a clear first draft rather than starting from a blank page.
How do I use the Prep & Assurance workbook for GRI 304-2?+−
The Download Centre includes a Prep & Assurance workbook in .xlsx format. Use it to organise the disclosure inputs, track what is still missing, and assemble the evidence needed for review.
What is the printable Library Card for GRI 304-2 for?+−
The Download Centre also includes a printable Library Card in .pdf format. It is a quick-reference aid you can use while preparing the disclosure or checking the page content during review.
Who should own the data for GRI 304-2 if I am coordinating the disclosure across teams?+−
The page is written for sustainability and ESG managers, HR or data owners, and assurance reviewers, so ownership should sit with the people who can source and explain the underlying biodiversity-impact data. Use the page’s step-by-step preparation and evidence pack to assign who collects, checks and signs off each input.
Can I reuse data from GRI 304-2 for ESRS E4 (Biodiversity and Ecosystems)?+−
The page notes ESRS E4 as the closest correspondence, so the same underlying data may be reusable across both. Do not assume the reporting asks are identical; use the page to identify what you already have and then check the other framework separately.
More questions this page can help with
GRI 304-2 biodiversity disclosure checklist for infrastructure, pollution, invasive species and habitat conversion dataHow to scope impact area size, duration and reversibility for GRI 304-2GRI 304-2 evidence pack items for assurance reviewGRI 304-2 common mistakes and reporting gapsHow to use the GRI 304-2 workbook downloadGRI 304-2 draft narrative starters and content index lineGRI 304-2 affected species list data collectionGRI 304-2 ecological process changes disclosure preparationGRI 304-2 assurance claims claim risk evidenceGRI 304-2 printable library card PDF downloadGRI 304-2 from company reports examplesESRS E4 reusable data from GRI 304-2 biodiversity disclosure
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