Our team of experts will provide regular insights into the various sector-specific sustainability reporting standards of the ESRS. This series aims to shed light on the complex topic of sustainability reporting and provide you with practical guidance and insights on each standard. Stay tuned for in-depth, understandable and applicable information directly from our experts.

What ESRS E1 includes and why it is important

The introduction of the European Sustainability Reporting Standards (ESRS) E1 marks a significant step forward in the way companies disclose their climate-related activities. It is dedicated to improving the clarity and comprehensiveness of climate reporting. It takes an in-depth look at the impact of climate change on a company's resilience and overall performance, describing both the positive and negative impacts. From the intricacies of greenhouse gas emissions to strategic transition plans to mitigate climate impacts, the standard aligns closely with the ambitious goals of the Paris Agreement to limit global warming to 1.5°C.

The various disclosure requirements of ESRS E1 are shown in the table below.

Synergies with other ESRS topics

ESRS E1 is closely linked to other areas of sustainability reporting, which illustrates the complexity and importance of an integrated approach:

• Environmental Pollution (ESRS E2): Addresses air emissions directly linked to climate change issues such as ozone depletion and greenhouse gases.
• Social standards (ESRS S1 to S4): Addresses the social impacts of transitions to a carbon-neutral economy on employees, suppliers, communities and consumers.

Synergies with global standards for maximum impact

The role of ESRS E1 goes beyond mere reporting. It acts as a nexus that integrates deep insights from various global bodies and frameworks that are critical to climate policy. Here is how these frameworks complement the efforts of ESRS E1:

1. Intergovernmental Panel on Climate Change (IPCC): As the leading international body for assessing climate science, the IPCC provides the foundational knowledge that informs ESRS E1. Its research and reports provide a scientific basis for understanding climate projections, impacts and necessary adaptations.
2. Task Force on Climate-related Financial Disclosures (TCFD): This framework improves how companies communicate climate-related financial risks and opportunities. By adopting the TCFD recommendations, companies can disclose their vulnerability to physical and transition risks, which strengthens transparency and resilience.
3. Science Based Targets Initiative (SBTi): SBTi enables companies to set science-based emissions reduction targets that are aligned with the goals of the Paris Agreement. This rigorous approach ensures that corporate strategies are scientifically validated to significantly limit global warming.
4. The GHG Protocol: This internationally recognized standard provides detailed guidelines for measuring and managing greenhouse gas emissions. It enables organizations to calculate emissions from various sources and develop effective reduction strategies.

Outlook: Using ESRS E1 for sustainable growth

As we continue to explore ESRS E1 and its synergies with other influential frameworks, it becomes clear that this standard is a cornerstone for future-proofing organizations against climate risks. By adopting ESRS E1, companies are positioning themselves not only in line with global climate goals, but also as leaders in the transition to a sustainable economy.

In upcoming articles, we will look at other sector-specific standards under the ESRS umbrella that provide companies with a roadmap to navigate and excel in the sustainability reporting landscape. Stay tuned as we decode these standards and uncover how they can transform the sustainability narrative for companies worldwide.