DNSH or "do no significant harm" analysis

The purpose of the ‘do no significant harm’ approach is to avoid significant harm to the environment as a whole. If a project contributes to one of the six environmental goals, it is important to make sure that it will not cause significant harm to the other goals.

In the DNSH analysis, we assess the contribution of the project throughout its life cycle to ensure that it has a positive impact and to avoid negative consequences in subsequent phases of its operation:

• climate change mitigation;
• climate change adaptation;
• sustainable use and protection of water and marine resources;
• transition to the circular economy;
• pollution prevention and control;
• protection and restoration of biodiversity and ecosystems.

For the purposes of the company’s green transition, investments that contribute to the environmental objectives of the European Union and have a significant positive impact on the environment, as defined by EU regulations, are supported. A DNSH analysis is required to assess the impact. It should also be taken into account that the impact of the investment is not only assessed on the basis of the activity of the investment itself, but also on the basis of the absolute impact of the whole activity of the company.

Activities may have insignificant harmful effects, but these need to be mitigated by additional investments that provide a better environmental outcome and thus comply with the “do no significant harm” principle. If the introduction of mitigation measures still does not rule out significant harm, the proposed activity cannot be funded.

A certified environmental management system standard (ISO 14001) facilitates the assessment of the company’s impact, but does not guarantee that the subsidized investment will comply with the “do no significant harm” principle, as an investment that changes the production process will introduce new additional impacts and will have to be assessed separately.

The preparation of a DNSH impact assessment is not a complex task for us. We have carried out more than 50 DNSH analyses in various manufacturing industries, including metals, wood, textiles, food and mining. As a result, we have a broad range of knowledge and experience.