AR1. When conducting a materiality assessment on environmental subtopics, the undertaking shall assess the materiality of resource use and circular economy in its own operations and its upstream and downstream value chain, and may consider the four phases below, also known as the LEAP approach:
(a) Phase 1: locate where in the undertaking's own operations and along its upstream and downstream value chain the interface with nature takes place;
(b) Phase 2: evaluate the dependencies and impacts;
(c) Phase 3: assess the material risks and opportunities;
(d) Phase 4: prepare and report the results of the materiality assessment.
AR2. With regard to ESRS E5, phases 1 and 2 rely mainly on the materiality assessments conducted under ESRS E1 (including energy consumption), ESRS E2 (pollution), ESRS E3 (marine resources, water consumption) and ESRS E4 (biodiversity, ecosystems, raw materials). Indeed, circular economy eventually aims at reducing the environmental impact of the use of products, m
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