Questions & Answers
Should ESRS E1 paragraph AR 48 including the table for disaggregating total emissions be interpreted as a mandate that all disclosers use the given table (as suggested using ‘shall’)? If so, could the meaning of the columns be more clearly specified?
- Total emissions
Background
ESRS E1 paragraph AR 48 states that the undertaking shall disclose its total GHG emissions disaggregated by Scopes 1 and 2 and significant Scope 3 in accordance with the table below.
The retrospective columns concern historical data. The base year is the historical reference date or period for which information is available and against which subsequent information can be compared over time, as stated in ESRS 1 Chapter 6.3 Reporting progress against the base year.
ESRS E1 paragraph AR 25 requires that when setting new targets the undertaking select a recent base year that does not precede the first reporting year of the new target period by more than three years. For example, for 2030 as the target year and a target period between 2025 and 2030, the base year shall be selected from the period between 2022 and 2025. For the following five-year period, the base year should be 2030. If early reductions have been achieved, these should be explained in another table or by adding new columns. Further explanations are available at ID 531 GHG emission reduction targets – base year.
ESRS 1 Chapter 7.1 Presenting comparative information states: ‘The undertaking shall disclose comparative information in respect of the previous period for all quantitative metrics and monetary amounts disclosed in the current period.’ That is, the undertaking shall present previous reporting year data for comparison purposes in the third ‘comparative’ column.
In column N (fourth column), the undertaking presents the current reporting year figures, and in the fifth column it shall present the percentage reduction / increase of the value in the current year over the previous year.
The milestones and target years columns are for reporting target information for the years 2025, 2030 and 2050 (if available). It is suggested to include all target values between 2035 and 2050 that the undertaking has set by using the column ‘2050’ as a placeholder for those targets or by adding more columns to the table as applicable – given the requirement in ESRS E1 paragraph 34 (d) to update the target year every five years from 2030 onwards. Finally, the ninth column is for reporting the average annual emission reduction figure by using the following formula:
Answer
Yes, the undertaking is required to disclose its total GHG emissions disaggregated by Scopes 1 and 2 and significant Scope 3 in accordance with the table provided in ESRS E1 paragraph AR 48. Note that the undertaking is only required to fill the cells of the table that are applicable to the undertaking, meaning that for Scope 3 only significant categories (see ESRS E1 paragraph AR 46) are to be disclosed and that the cells under ‘Milestones and target years’ are to be filled according to the targets set by the undertaking.
The columns of the table are the following:
The base year: for reporting the value of the metric in the base year against which progress towards the target is measured
Comparative year: for reporting the previous year’s (compared to the reporting year’s) value for the metric
N: the value for the metric in the current year
% N/N-1: percentage reduction / increase from previous year
2025: value of target for the metric in year 2025
2030: value of target for the metric in year 2030
(2050): value of interim targets set for the metric in the years between 2035 and 2050
Annual % target / base year: report on the average annual emission reduction figure achieved so far by using the following formula:
Relations
Paragraph | Content |
|---|---|
The undertaking shall disclose its total GHG emissions disaggregated by Scopes 1 and 2 and significant Scope 3 in accordance with the table below. | |
The undertaking shall disclose its total GHG emissions disaggregated by Scopes 1 and 2 and significant Scope 3 in accordance with the table below. | |
The undertaking shall disclose its total GHG emissions disaggregated by Scopes 1 and 2 and significant Scope 3 in accordance with the table below. |