Annual Report 2025

Annual Report 2025

ESRS E4 – Biodiversity and Ecosystems

  • Biodiversity and Ecosystems

Material Impacts, Risks, and Opportunities

In our double materiality assessment, we identified the following negative impact on biodiversity arising from our business activities in the upstream value chain.

 

IRO

Description

Value chain

Time horizon

Direct impact drivers of biodiversity loss (land-use change)

Beiersdorf sources palm oil and natural rubber from Southeast Asia. The associated destruction of habitats through deforestation of large areas of tropical rain forest for the purpose of expanding plantations and monocultures results in a loss of biodiversity.

Upstream

Positive impactNegative impactRiskOpportunityShort termMedium termLong term

Beiersdorf understands the impact that palm oil and natural rubber have on biodiversity and ecosystems. Both of these raw materials are key commodities for our business; palm (kernel) oil derivatives, e.g., for skin care products, and natural rubber, e.g., for general-purpose tapes, and their continued availability is crucial for the success of our company. Yet the expansion of oil palm and natural rubber plantations frequently entails the clearing of extensive areas of (tropical) rainforest and other valuable ecosystems. This is why we identified land-use change in the upstream value chain as a material topic for Beiersdorf.

In our double materiality assessment, we did not identify negative impacts with regard to soil sealing and desertification. We have also determined that our own sites do not have a material negative impact on biodiversity-sensitive areas. We furthermore did not identify any operations to have negative impacts on threatened species.

Consumer

Consumer

Assessment of Impacts, Risks, and Opportunities Related to Biodiversity and Ecosystems

We applied a two-step process to assess actual and potential impacts on biodiversity and ecosystems, both from our own operations and along the upstream and downstream value chain. First, we performed a traceability study on our palm oil supply chain. We then assessed biodiversity risks in the specific regions of our own sites and the oil mills in the upstream supply chain using such tools as the WWF’s “Biodiversity Risk Filter” (BRF) and “Water Risk Filter” (WRF). Moreover, as a founding member of the “Action for Sustainable Derivatives” (ASD), we have been conducting an annual transparency analysis of our palm oil supply chain since 2019 to identify hotspots, disclose upstream supply chains, and support targeted local projects.

The WWF’s BRF covers both the regions in which our sites are located and the sector in which we operate. Together, these factors determine the overall biodiversity risk of a site, using 33 indicators that cover different aspects of biodiversity risk. A risk score is calculated for every indicator based on an assessment of the state of the biodiversity-related issue at a specific site and the dependency/impact of the sector on this indicator. Dependency in this context means that the selected sector relies on ecosystems, for instance to provide water and wood, or to regulate and mitigate environmental impacts. On the other hand, sectors have an impact on biodiversity at their sites, for example through direct or indirect exploitation, pollution and land-use changes (including conversion, degradation, and changes to ecosystems).

Physical risks were assessed based on our dependency on intact ecosystems and our exposure to ecosystem degradation and natural hazards. Sites located in regions with high water scarcity or poor soil conditions may be exposed to greater physical risks. The BRF assesses these risks by taking into account the local environmental conditions and the dependency of the industry on ecosystem services. The tool also assesses transition risks by considering how political changes, consumer trends, and technological developments could affect the business activities of a sector.

Beiersdorf has currently not incorporated systemic risks into its assessment and has not directly consulted affected communities on the materiality assessment of shared biological resources and ecosystems.

None of our production sites coincide with biodiversity-sensitive areas as defined in the WWF’s BRF. Therefore, the activities at these sites neither negatively affect these areas, nor lead to deterioration of natural habitats or the habitats of species. We have not so far assessed whether we need to implement actions to mitigate the impact on biodiversity associated with our business activities, as set out in Directive 2009/147/EC of the European Parliament and of the Council.

Policies Related to Biodiversity and Ecosystems

We aim to limit our negative impact on ecosystems and biodiversity to meet our legal, environmental, and social responsibilities in this regard. Therefore, Beiersdorf sets binding biodiversity standards in its corporate policies.

Consumer

Sustainable Palm Policy (Consumer)

Key content

 

Our “Sustainable Palm Policy” gives guidance on mitigating the adverse effects of palm oil cultivation on ecosystems, and on promoting agriculture practices that are less harmful to the environment than conventional ones. It addresses our material impacts on biodiversity and affected communities, resulting in particular from the procurement and use of palm (kernel) oil derivatives. The policy promotes working with supply chain partners to trace palm-based raw materials back to the refinery, mill, and plantation level.

Topic-related content

 

The policy addresses impact drivers of biodiversity loss, such as climate change, land-use change, direct exploitation, and impacts on ecosystems, the status of species and ecosystem services, by including the following key aspects:

  • We intend to source palm oil that does not lead to deforestation or the conversion of natural habitats, with the aim of helping to protect biodiversity-rich areas.
  • We aim to avoid palm oil plantation development and fires on peatlands, as well as in “High Carbon Stock” (HCS) and “High Conservation Value Areas” (HCVA)1, to preserve carbon sinks and habitats of endangered species.
  • We intend to promote landscape management practices that preserve ecological balance and foster biodiversity, e.g., through buffer zones or protected areas that serve as transitional habitat and wildlife corridors.
  • We aim to encourage agricultural methods that reduce habitat destruction, limit land expansion, and protect wildlife.
Our policy does not explicitly tackle biodiversity and ecosystem protection at sites within our own operations. This is because we have not identified material impacts, risks, and opportunities related to biodiversity and ecosystems for these sites. It also does not cover aspects related to practices in oceans and/or seas, as these are not material to Beiersdorf.

Scope

 

The policy includes all palm-based raw materials purchased by Beiersdorf’s Consumer Business Segment, products manufactured in our own global operations and third-party manufacturer operations, as well as suppliers and their entire upstream value chains.

Responsibility

 

The Sustainability Council oversees implementation of the policy, and the Vice President Sustainability approves it.

Third-party standards/initiatives

 

The policy is based on initiatives like the “Roundtable on Sustainable Palm Oil” (RSPO) and the “Forum for Sustainable Palm Oil” (FONAP), as well as standards like the above-mentioned HCSA, the “UN Guiding Principles on Business and Human Rights” and the “International Labour Organization’s” (ILO) conventions.

Consideration of stakeholder interests

 

The policy considers the interests of key stakeholders such as smallholder farmers and local communities, including indigenous peoples, as well as supply chain partners and multi-stakeholder initiatives.

Availability

 

We make the policy accessible by publishing it on our website and informing our relevant suppliers.

1

HCS and HCVA as defined under the “High Carbon Stock Approach” (HCSA).

tesa

tesa Environmental & Energy Policy

Topic-related content

 

In 2025, we incorporated biodiversity as a core principle in our “tesa Environmental & Energy Policy,” guiding our actions across sourcing, land use, and stakeholder engagement. With this inclusion, we firmly acknowledge the essential role of biodiversity in maintaining resilient ecosystems, stabilizing the climate, and securing natural resources for future generations.

Reference

 

For a detailed description of the “tesa Environmental & Energy Policy,” please refer to chapter “ESRS E1 – Climate Change.”

Actions Related to Biodiversity and Ecosystems

Palm (kernel) oil and natural rubber supply chains are complex and involve multiple stakeholders, including smallholder farmers, brokers, and large estates. This complexity makes it difficult to trace the origin of these raw materials accurately. Using a multi-lever approach, we have developed and are implementing a range of actions to respond to this challenge and address our material impact on biodiversity. The actions are intended to make a positive contribution to achieving the environmental goals outlined in the policies mentioned above.

Our current actions related to biodiversity and ecosystems do not involve the use of biodiversity offsets. Therefore, there are no aims, key performance indicators, or financing effects related to biodiversity offsets to report. Additionally, we have not presently incorporated local or indigenous knowledge or nature-based solutions into our biodiversity and ecosystem-related actions.

Consumer

RSPO Certification

Action

 

Our goal is to only use palm-based raw materials from 100% sustainable sources in accordance with the RSPO’s “Mass Balance” model.

Scope

 

Upstream value chain, Consumer Business Segment

Time horizon

 

Ongoing

Expected outcome

 

According to the “Mass Balance” model, products can be certified that contain both RSPO-certified and non-certified palm oil. In this context, companies must ensure that the processed quantity of RSPO-certified palm oil corresponds to the purchased quantity of RSPO-certified palm oil. This is particularly relevant for palm (kernel) oil derivatives, as their supply chains are even more complex than the palm oil supply chains. Therefore, there is no infrastructure for a supply chain in which RSPO-certified and non-certified derivatives are traded separately.

Progress

 

Has been achieved and maintained since 2020.
Sourcing and Monitoring of Deforestation-Free Sources

Action

 

We continue to work toward our goal of purchasing our palm (kernel) oil derivatives from deforestation-free sources. As part of this process, the “Action for Sustainable Derivatives” (ASD) initiative gathers comprehensive information about the upstream supply chain by contacting our direct suppliers to create transparency along the entire palm oil supply chain (further details can be found in chapter “ESRS S3 – Affected Communities”). This information serves as the basis for use of the satellite monitoring program “Nusantara Atlas,” which allows us to measure our progress toward deforestation-free supply chains.

Scope

 

Upstream value chain, Consumer Business Segment

Time horizon

 

Ongoing

Expected outcome

 

In the summer of 2025, the “Nusantara Atlas” program published its results for 2024. On this basis, we were able to prove that approximately 69% of the palm-based raw material volume from palm (kernel) oil mills in the two main countries of origin, Indonesia and Malaysia, was of deforestation- and conversion-free origin. This progress aligns with the goals set by the EUDR, with the cut-off date of December 31, 2020.

Progress

 

Has been achieved and maintained since 2023.
WWF Collaboration Projects

Action

 

In collaboration with the WWF and one of our suppliers, the chemicals company Evonik, the Consumer Business Segment has been involved in two biodiversity projects in Indonesia and Malaysia. Both initiatives aimed to contribute to biodiversity conservation by preventing human-animal conflicts and protecting natural resources.

Reference

 

The projects are described in detail in chapter “ESRS S3 – Affected Communities.”
Analysis of Nature-Related Risks

Action

 

Along with an external consultancy, we conducted a multi-phase assessment to build a science-based understanding of our relationship with nature and to guide future targets. Key topics, such as water, land use, biodiversity, and resource consumption, were aligned, and material nature impacts and dependencies across raw materials, manufacturing sites, and sourcing regions prioritized. Based on these hotspots, we identified physical and transition risks and opportunities, aligning with global frameworks, e.g., the “Science-Based Targets for Nature” (SBTN) network and the “Taskforce on Nature-related Financial Disclosures” (TNFD).

Scope

 

Direct operations and upstream value chain, Consumer Business Segment

Time horizon

 

2024 to 2025

Expected outcome

 

This action provided us with the robust evidence base we need to strengthen our risk management, support strategic decision‑making, and define clear nature‑related targets.

Progress

 

The analysis was completed in 2025.

tesa

Hot-Spot Analysis on Nature

Action

 

We commissioned an external partner to conduct a hotspot analysis to determine where tesa has the greatest negative impact on nature and which commodities and own operations are the main drivers of this. To this end, production site and raw materials data was evaluated.

Scope

 

Direct operations and upstream purchased goods, tesa Business Segment

Time horizon

 

January 2025 to July 2025

Expected outcome

 

We will use the analysis results to conduct a thorough review of existing interventions such as FSC® certifications to determine the extent to which they have positive or negative impacts on nature. In addition, the results will be incorporated into our sustainability strategy, the development of procurement guidelines, and supplier engagement.

Progress

 

Completed in July 2025.

Targets Related to Biodiversity and Ecosystems

Beiersdorf is currently developing a comprehensive biodiversity strategy and targets related to biodiversity and ecosystems for both the Consumer and tesa Business Segments. We aim to publish these targets in the next three years. Therefore, no strategic targets are reported for 2025.

Consumer

To date, we have however set the following ambitions in the Consumer Business Segment and use both qualitative and quantitative indicators to evaluate our progress:

  • We aim to achieve a deforestation-free palm supply chain by the end of 2030.1 This amplifies our commitment to zero deforestation of primary and secondary forests and natural ecosystems from 2020 as per the EUDR.

  • We aim to source 100% of our palm oil-based raw materials from sources certified as sustainable according to the RSPO’s “Mass Balance” model. We reached this ambition at the end of 2020 and have maintained it ever since.

  • In addition, we track the number of smallholder farmers involved in our biodiversity and ecosystem conservation projects and the area of land farmed under environmentally progressive practices.

1 We expect deforestation data for 2025 to be available by mid-2026, at which point we will evaluate our progress toward achieving the target.

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