ESRS E1 Climate Change

Definition

ESRS E1 Climate Change is a Topical ESRS Standard that aims to specify Disclosure Requirements which will enable users of sustainability statements to understand:

• how the undertaking affects climate change, in terms of material positive and negative actual and potential impacts
• the undertaking’s past, current, and future mitigation efforts in line with the Paris Agreement (or an updated international agreement on climate change) and limiting global warming to 1.5°C;
• the plans and capacity of the undertaking to adapt its strategy business model(s) and in line with the transition to a sustainable economy and to contribute to limiting global warming to 1.5°C;
• any other actions taken by the undertaking, and the result of such actions to prevent, mitigate or remediate actual or potential negative impacts
• the nature, type and extent of the undertaking’s material risks and opportunities arising from the undertaking’s impacts and dependencies on climate change, and how the undertaking manages them
• the financial effects on the undertaking over the short-, medium- and long-term time horizons of risks and opportunities arising from the undertaking’s impacts and dependencies on climate change.

Disclosure Requirements

ESRS E1 formulates 9 distinct disclosure requirements.

See Also

Other ESRS components in the Environment cluster:

• ESRS E2 Pollution
• ESRS E3 Water and Marine Resources
• ESRS E4 Biodiversity and Ecosystems
• ESRS E5 Resources and Circular Economy

References

• EFRAG, Draft ESRS E1 Climate change, Nov 2022