Climate transition plans: How EU standards can help companies to focus on the right data
June 2021 Issue
This year will be key for future climate policy and especially for sustainable finance in Germany and Europe. Sustainable finance plays a crucial role in improving climate protection and sustainable growth. To this end, Germanwatch joined forces with the Alliance for Corporate Transparency in order to push towards greater corporate responsibility and disclosure requirements to meet the EU and Paris climate targets.
This is the fourth article of our briefing series “Full Disclosure: Monthly Briefing on EU Corporate Transparency Regulation”, in which we aim to shed light on the need for and benefits of forward-looking reporting requirements in a changing EU regulatory environment.
About this issue:
Climate change is a critical issue that no company can afford to ignore. The goal of limiting the temperature increase to 1.5°C has become the standard. This implies net-zero emissions by mid-century.
Hence, it is becoming essential for companies’ success – and survival – to align their business models with a net-zero future.
In order to come up with solid climate transition plans and net-zero targets, the Corporate Sustainability Reporting Directive (CSRD), accompanied by the EU sustainability reporting standard, need to ensure clarity regarding key reporting elements and methodologies. This is essential for quality, comparability, disclosure of material information, and reducing the risk of greenwashing.
This article sheds light on climate transition plans and how EU standards can help companies to focus on the right data by addressing the following questions:
- What are the key issues that the EU sustainability reporting standard needs to address?
- What is the right data for climate transition plans?
- What is the right data for climate-related risks, opportunities, and governance?
March Issue: Reform of the EU Non-financial Reporting Directive: A Push Towards Future-proof Reporting Obligations
April Issue: What needs to be reported on sustainability-related governance?
May Issue: The EU Sustainable Finance April package and how EU sustainability reporting standards fit in
Filip Gregor, Head of Responsible Companies Section at Frank Bold