XN Water Risk · ESRS E3
ESRS E3: water, and the sites in areas with water stress
ESRS E3 asks which sites lie in areas with water stress and how much water the company withdraws, consumes and discharges. We check every site against the E3 thresholds with the value of its basin; withdrawals and consumption stay the company's data.
The rule
Four disclosure requirements, and the water stress thresholds
In the text revised by Delegated Regulation (EU) 2026/1563, from financial years 2027, ESRS E3 sets four disclosure requirements. Its AR 2 gives the global indicators and thresholds that say whether an area is with water stress, typically assessed at least at basin level.
- E3-1
Policies
The water policies, and whether there are sites in areas with water stress they do not cover.
- E3-2
Actions and resources
The main actions, including those for areas with water stress.
- E3-3
Targets
The water targets.
- E3-4
Metrics
Consumption, consumption in areas with water stress, withdrawal, discharge, recycling and storage.
Sources: Delegated Regulation (EU) 2026/1563, ESRS E3 · Kuzma et al. 2023, Aqueduct 4.0, WRI
The platform's data
Every site against the AR 2 threshold
For every site we read the baseline water stress of its basin from WRI Aqueduct: its categories are the ones AR 2 uses as a threshold, from High (40-80%) upwards.
What we give
- The baseline water stress of each site's basin, with its category and the AR 2 threshold
- The list of sites in areas with water stress, the one E3-1 and E3-4 rely on
- The physical water risks AR 1 sets beside water stress: floods and drought
With their limits
- One value per basin, not per site: nearby sites in the same basin share it
- A full assessment also covers water quality and accessibility, as AR 2 itself says
Stays with the company
- Withdrawals, consumption, discharges and storage (E3-4): they are the company's data
- Policies, actions and targets (E3-1 to E3-3)
- The materiality assessment and the reporting
FAQ
Questions on ESRS E3
Do you produce the E3-4 metrics?
No. Withdrawals, consumption and discharges are measured by the company. We say which sites lie in areas with water stress, which is what separates the consumption in those areas.
Why do different sites have the same value?
Because baseline water stress is computed per basin: sites in the same sub-basin share the value. It is also the minimum level AR 2 indicates for the assessment.
Where does the value come from?
From WRI Aqueduct: baseline water stress is the ratio between total withdrawals and the renewable water available in the basin.
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