Defining climate targets: Transparency of future sustainability reporting

 

For a company to make a credible and meaningful contribution to the Paris Agreement and the climate targets of the EU and Germany, it needs targets. Thus, the future reporting according to the European Sustainability Reporting Standards (ESRS) E1 provides for transparent reporting on climate targets, policies, action plans and resources. But what goals should a company set regarding the climate? As a starting point, the goals presented below can be a good orientation for your own definition of climate goals. They help to evaluate how companies can contribute to the overall goals with their own climate goals.  

In future, companies affected by the CSRD will have to report on climate targets and their achievement. ESRS E1 addresses this in Disclosure Requirement E1.4. First of all, it must be disclosed whether the company has a climate target. If there is one, it must be described how the targets were set (e.g., based on the SBTi). Subsequently, the base year and the value of the base year as well as the target for 2030 (and if possible, also for 2050) must be stated.

Successful reduction of global warming also depends on the contribution of individual companies. This is both a challenge and a catalyst for new perspectives and economic success. In this context, an overview of company-wide greenhouse gas emissions is an important step towards change. A transparent view of the largest sources of emissions in the company provides information on where the appropriate levers for reduction lie. With the new ESRS sustainability standards, the EU has provided a decisive incentive in the direction of greenhouse gas reduction by obligating the companies concerned to report transparently.