Biodiversity Disclosures for Agricultural SMEs: CSRD Nature Reporting
Whether you’re a small farm, agricultural cooperative, or food producer working directly with land, biodiversity is becoming a visible part of sustainability reporting. Some organisations report under CSRD directly; others use VSME voluntarily to meet customer, processor, or certification requirements.
Either way, CSRD brings new attention to how agricultural activities affect nature—from land use and habitats to pesticide and fertiliser impacts. This guide focuses specifically on biodiversity reporting for agricultural SMEs, using practical examples rather than complex ecological models.
Why Biodiversity Matters Under CSRD
Under CSRD, biodiversity and ecosystems are addressed through ESRS E4. For agriculture, this is often a material topic because farming activities directly interact with land, soil, water, and species.
Biodiversity disclosures are used by:
- Food brands assessing suppliers
- Retailers responding to nature-related risks
- Certification schemes and sustainability labels
Many agricultural SMEs first encounter these expectations through supply-chain requests rather than formal CSRD reports. A broader overview of how these requirements filter down to smaller businesses is available in CSRD supplier requirements: what small businesses should expect in 2025.
Land Use and Land Management Impacts
Land use is the starting point for most biodiversity disclosures in agriculture.
Typical information includes:
- Total land area farmed
- Type of land use (arable, permanent crops, pasture)
- Any land conversion in recent years
You are not expected to conduct detailed biodiversity mapping. What matters is being able to explain:
- How land is managed
- Whether natural habitats are present or protected
- Whether practices have changed over time
This high-level land use context supports broader nature reporting and customer assurance.
Pesticide and Fertiliser Pollution Impacts
Pollution from agricultural inputs is closely linked to biodiversity loss, especially for soil organisms, insects, and water ecosystems.
Pesticides
Common disclosures include:
- Types or categories of pesticides used
- General approach to reducing use or switching products
- Compliance with regulatory standards
CSRD does not require publishing exact application rates for SMEs. Clear explanations of how risks are managed are usually sufficient.
Fertilisers and Nutrient Runoff
For fertilisers, biodiversity reporting often overlaps with pollution disclosures.
Typical information includes:
- Use of synthetic vs organic fertilisers
- Measures to reduce runoff or leaching
- Soil management practices
If you already track fertiliser use for emissions or nutrient management, this information can often be reused. Related pollution reporting principles are covered in the pollution topic hub.
Habitat Preservation and Enhancement Practices
CSRD encourages companies to report not only negative impacts, but also actions that support biodiversity.
For agricultural SMEs, this often includes:
- Hedgerows, field margins, or buffer strips
- Permanent grassland or natural areas
- Pollinator-friendly planting
You do not need to quantify species counts. Describing:
- What habitats exist
- How they are maintained
- Why they matter locally
is usually sufficient for early-stage reporting.
Documenting Positive Biodiversity Contributions
Many small farms already apply biodiversity-friendly practices, even if they have never labelled them as such.
Examples of positive contributions include:
- Reduced tillage or soil conservation
- Crop rotation and diversification
- Participation in agri-environment schemes
CSRD allows these actions to be reported narratively, supported by simple indicators (e.g. area under biodiversity-friendly management). This documentation is often valuable for both customers and certification schemes.
Using Existing Certifications and Schemes
Many agricultural SMEs already participate in:
- Organic certification
- Integrated pest management schemes
- National agri-environment programmes
Under CSRD, these schemes can be referenced as supporting evidence, but they do not replace disclosure. Good practice is to explain:
- What the scheme covers
- Which land or products are included
- Any limitations
This helps avoid over-claiming while still demonstrating credibility.
Collecting Biodiversity Data Without Complexity
Most biodiversity reporting for SMEs relies on:
- Farm records
- Land maps or field plans
- Simple annual summaries
CSRD does not require ecological surveys for small farms. Consistency and clarity are more important than scientific detail. This approach aligns with broader data collection & management guidance.
Frequently Asked Questions
Do small farms really need to report on biodiversity?
If biodiversity is material to your activities—and for most farms it is—then yes, at least at a basic level. Expectations are proportionate to size and risk.
Are pesticide-free or organic farms treated differently?
Organic or low-input practices can be highlighted as positive contributions, but they still need to be explained clearly. Labels alone are not sufficient.
Do we need biodiversity targets?
Not necessarily. Many SMEs start with qualitative commitments and describe existing practices before introducing measurable targets later.
Can biodiversity reporting help with customers and certifications?
Yes. Clear biodiversity documentation is increasingly valued by food brands, retailers, and certification bodies looking for credible nature claims.
Key Terms
- CSRD – Corporate Sustainability Reporting Directive
- ESRS E4 – Biodiversity and ecosystems standard
- Biodiversity – Variety of species, habitats, and ecosystems
- Land use – How land is managed and cultivated
- Pollution – Release of substances harmful to ecosystems
Next Steps for Agricultural SMEs
Start by mapping your land use and listing existing biodiversity-related practices. Document how pesticides and fertilisers are managed and identify any habitats or conservation measures already in place.
With a clear and proportionate approach, biodiversity disclosures become a way to demonstrate responsible land stewardship—supporting CSRD readiness, customer trust, and long-term farm resilience across Europe.