ESRS E3 - Management of Water and Marine Resources in Corporate Sustainability

What is ESRS E3, Water and Marine Resources?

ESRS E3 (European Sustainability Reporting Standards, topical standard E3) is one of the standards that underpin sustainability reporting under the EU Corporate Sustainability Reporting Directive (CSRD). It focuses specifically on a company's impacts, risks and opportunities related to water and marine resources, requiring organisations to explain how they manage water and how they affect oceans and other marine ecosystems. ESRS E3 connects naturally with international frameworks such as the United Nations Sustainable Development Goals, in particular SDG 6 (Clean Water and Sanitation) and SDG 14 (Life Below Water).

ESRS E3 is one of the ten topical standards adopted as part of the first set of European Sustainability Reporting Standards (ESRS), alongside cross-cutting standards and the other environmental, social and governance topics. Like all topical standards, its disclosures only apply where the topic is found to be material in the company's double materiality analysis.

Why ESRS E3 matters in corporate sustainability

Water and marine ecosystems are essential for life and for the economy, yet over-extraction, pollution and climate change are putting their availability and quality under pressure. According to UN Water, a large share of the world's wastewater is released into the environment without adequate treatment, harming aquatic ecosystems and the communities that depend on them. Many industrial sectors, from food and beverages to textiles, energy and mining, are highly exposed to water-related risks.

In this context, ESRS E3 aims to make companies account for how they use and affect water and marine resources. Beyond environmental protection, transparent reporting helps organisations identify and manage the financial and reputational risks that come with water scarcity, pollution incidents and tighter regulation.

Relationship with the carbon footprint

Water impacts and a company's carbon footprint are closely linked. Extracting, moving, heating and treating water are energy-intensive activities that generate greenhouse gas emissions. At the same time, the degradation of marine ecosystems such as mangroves, seagrass meadows and salt marshes reduces their capacity to act as carbon sinks. Measuring and managing water impacts is therefore part of a credible decarbonization strategy, not separate from it.

Key aspects of ESRS E3

Where water and marine resources are material, ESRS E3 asks companies to disclose information across several areas:

1. Policies, actions and targets: how the company manages water and marine resources, including any policies, action plans and measurable targets for reducing water use or improving water quality.
2. Water consumption and withdrawals: the volume of water withdrawn and consumed, broken down by source where relevant, with particular attention to operations located in areas of high water stress.
3. Water discharges and pollution: how the company manages and treats its discharges, including the substances released into water, linking to the pollution standard ESRS E2.
4. Impacts on marine resources: the effects of activities such as maritime transport, offshore operations or the extraction and use of marine resources.

How to comply with ESRS E3

Reporting under ESRS E3 calls for an integrated approach that combines reliable data, risk analysis and concrete action. The main steps are:

1. Materiality assessment: determine, through the double materiality process, whether water and marine resources are a material topic for the business. If they are not, the company explains this rather than reporting the full set of datapoints.
2. Data collection and risk analysis: gather data on water withdrawals, consumption and discharges, and assess exposure to water stress using recognised tools such as the WRI Aqueduct Water Risk Atlas.
3. Action and targets: implement measures such as water-efficiency technologies, improved wastewater treatment or ecosystem restoration, and set targets to track progress.
4. Monitoring and reporting: define key performance indicators, monitor them over time and report progress in the sustainability statement.

The Omnibus simplification and ESRS E3

The EU is simplifying sustainability reporting through its Omnibus package. The substantive Omnibus I directive, Directive (EU) 2026/470, raised the CSRD thresholds so that fewer companies fall in scope, while EFRAG is preparing a revised, lighter set of ESRS (often called ESRS 2.0) that cuts the number of mandatory datapoints by more than 60% and is expected to apply from financial year 2027, with voluntary early adoption. Until the revised standards are formally adopted, the 2023 ESRS, including ESRS E3, remain the legal reference for companies that report under the CSRD.

Benefits of complying with ESRS E3

• Stronger reputation: credible water management is increasingly valued by customers, investors and other stakeholders.
• Cost savings: more efficient water use and reduced losses can translate into meaningful savings.
• Better access to finance: many investors and lenders favour companies that demonstrate solid environmental management.

How Manglai can help your company with ESRS E3

ESRS E3 is a key part of CSRD reporting on water and marine resources, and complying with it is easier with the right data foundation. At Manglai we help companies measure and manage their environmental data, calculate their carbon footprint and prepare their sustainability reporting in line with the ESRS. Discover how Manglai can help you.