ESRS E1 Climate Change is a European Sustainability Reporting Standard prepared for reporting under the CSRD directive. ESRS E1 Climate Change is the first of the environmental standards and is material for many companies according to the double materiality analysis. The standard includes reporting requirements related to climate change mitigation and transition, as well as emission accounting requirements covering the company’s entire value chain, including scope 1, scope 2, and scope 3 emissions.
Greenhouse gas emission accounting according to the standard is based on the GHG Protocol standards but it also introduces some clarifications and additional requirements. Scope 2 emissions must be calculated using both market- and location-based approaches. Additionally, the calculation of scope 3 emissions will become mandatory for all companies subject to the CSRD. Total emissions must be reported using both market-based and location-based approaches, and the company must also report its emissions intensity, meaning the total emissions in relation to its revenue.