Did you think that CSRD and the ESRS E1 “Climate Change” standard was mostly about reporting on your GHG emissions?
The answer is no. Less than 20% of the disclosure points in E1 are about reporting on emissions.
Strategy, governance, processes, climate change resilience, and climate-related impacts, risks & opportunities are very much in focus.
Here are some examples of disclosure points you will have to report on:
⭕ Integration of climate-related performance in remuneration
➡ Whether (yes or no) and how (describe) climate-related considerations are factored into the remuneration of top-management and supervisory bodies
➡ If their performance has been assessed against the GHG emission reduction targets reported under Disclosure Requirement E1-4 “Targets related to climate change mitigation and adaptation”
➡ An explanation of what the climate considerations factored into the remuneration are
➡ Percentage of the remuneration recognised in the current period that is linked to climate-related considerations
⭕ Description of your processes to identify and assess climate-related impacts, risks and opportunities, in relation to:
➡ Impacts on climate change, in particular, your GHG emissions
➡ Climate-related physical risks in your own operations and along the upstream and downstream value chain, in particular:
✔ identification of climate-related hazards, considering at least high emission climate scenarios
✔ assessment of how your assets and business activities may be exposed and are sensitive to these climate-related hazards
➡ Climate-related transition risks and opportunities, in particular:
✔ identification of climate-related transition events, considering at least a climate scenario in line with limiting global warming to 1.5°C with no or limited overshoot
✔ assessment of how your assets and business activities may be exposed to these climate-related transition events, creating gross transition risks or opportunities for your company
⭕ Material impacts, risks and opportunities and their interaction with your strategy and business model
➡ For each material climate-related risk you identify, whether you consider the risk to be a physical or transition risk
➡ Description of the resilience of your strategy and business model in relation to climate change, including a description of the scope of the resilience analysis
➡ How and when the resilience analysis has been conducted, including the use of climate scenario analysis, as well as the results of this analysis