CSRD-compliant towards NetZero
A viable climate strategy and its concrete implementation is an indispensable prerequisite for companies to survive in the market in the medium and long term. However, measurable targets and specific measures to achieve climate targets will also become a legal obligation when the Corporate Sustainability Reporting Directive (CSRD) comes into force. The reporting requirements are described in the associated European Standards for Sustainability Reporting (ESRS – European Sustainability Reporting Standards). If the double materiality analysis shows that climate protection is material for the company in question – and this will be the case for the vast majority of companies required to report under CSRD – the company must report in accordance with the requirements described in ESRS E1 (Climate Protection). The core element of the disclosure requirements is the transition plan for climate protection, the so-called Climate Transition Plan.
The Climate Transition Plan requires the corporate carbon footprint (CCF) of the respective company as a basis, the requirements of which are described in detail in the ESRS. This CCF must first be examined for fields of action and possible decarbonization levers (decarbonization analysis) in order to develop a solid action plan (Climate Action Plan). The Climate Transition Plan, as required by CSRD ESRS E1-1, goes well beyond the scope of a simple action plan. The Climate Transition Plan should provide a comprehensive understanding of the company’s efforts to mitigate and adapt to climate change. It must also demonstrate that the reporting organisation’s business model contributes to a sustainable economy and to limiting global warming to 1.5°C in line with the Paris Agreement. A well-designed Climate Transition Plan serves not only as an internal guideline, but also as an information tool for investors, lenders and policy makers. The Climate Transition Plan must be embedded in the company’s overall strategy and describe the other impacts of the measures, as well as the physical and financial opportunities and risks. The reductions in greenhouse gas (GHG) emissions required to achieve the climate targets must be defined in measurable and comparable targets, known as science-based targets (SBTs).
DFGE Support
At DFGE, we are happy to assist you in developing a comprehensive Climate Transition Plan that is compliant with the ESRS E1 climate standard, ensuring alignment with the latest regulatory requirements. However, we also help you with the steps along the journey – whether it is by a Decarbonization Analysis of your corporate carbon footprint (CCF) or an action plan based on it, the Climate Action Plan. We are also there to assist you with general CO2 reporting (CSR reporting) and CO2 offsetting measures. If you have any further questions, please contact us at or by phone at +49 8192-99733-20.
