👉 What companies should do and report on the topic of climate - an overview:
The climate crisis is the mother of all crises. The future of human civilization and ecosystems depends on limiting planetary warming to 1.5° Celsius. Therefore, climate plays a key role in CSRD and ESRS reporting requirements for companies and in other standards such as the EU TaxonomyFSB Task Force on Climate-related Financial Disclosures (TCFD) or the Science Based Targets initiative.(SBTi)
1️⃣ carbon footprints: CCF, PCF and Scope 1/2/3
The basis for climate protection is a carbon footprint of the company (CCF) or specific products (PCF). Both measure greenhouse gas emissions expressed in CO2 equivalents (CO2e) emitted within the company (Scope 1), for purchased energy (Scope 2) or in the upstream or downstream value chain (Scope 3), using the Greenhouse Gas Protocol or other calculation methods. Standards.
2️⃣ 𝟭.𝟱° Celsius science-based targets
If you have your company's carbon footprint, the EU expects you to set reduction targets and emissions pathways in line with the 1.5° Paris Agreement. The Science Based Targets initiative can verify and certify that your reduction plans are consistent with the science-based pathways.
3️⃣ Climate change mitigation and emissions reduction measures
Next, you need to take action to reduce your greenhouse gas emissions, whether through energy efficiency, renewable energy, zero-emission production processes, or zero-emission transportation and mobility. Your company needs a costed plan with short-, medium- and long-term measures to demonstrate that your actions are sufficient to meet reduction targets.
4️⃣ CO2 compensation and removal
CO2 compensation and removal measures should be reported, but always separately from carbon accounting and reduction measures. Companies should report if they purchase CO2 offset credits from certified projects, whether they have solutions that help reduce emissions at customers, or if they use CO2 removal technologies such as CO2 capture and storage/utilization.
5️⃣ Climate Risk Analysis and Adaptation Measures
Climate risks are of particular interest to investors who want to prevent damage to invested assets. Companies need to quantify climate-related risks, such as climate damage risk, stranded asset risk, and asset transition risk. Companies must also take adaptation measures and report on how climate risks can be mitigated to be more resilient to climate change.
👉 Medium-sized companies should start with footprinting and goal setting. They are an important part of the solution, contributing green technologies to reduce emissions and helping large companies decarbonize their operations and supply chain. However, they must prepare to make green investments to modernize and decarbonize their own operations.
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