ESRS reporting for manufacturing companies

What is ESRS reporting?

ESRS reporting begins in 2025, requiring companies with revenue over €50 million to disclose sustainability-related information. This enhances transparency, helping investors and stakeholders assess environmental, social, and governance (ESG) practices.

ESRS stands for European Sustainability Reporting Standards. These standards are part of the Corporate Sustainability Reporting Directive (CSRD) implemented by the European Union. ESRS requires companies to provide detailed disclosures on environmental, social, and governance (ESG) matters, aiming to enhance transparency, comparability, and accountability in corporate sustainability practices. The goal is to support sustainable investment decisions and promote responsible business conduct.

ESRS E1 - Climate change

Direct energy consumption and CO2 emissions in a manufacturing company are addressed under the Environmental standards of the European Sustainability Reporting Standards (ESRS). Specifically, these aspects are covered in:

1. ESRS E1 – Climate Change: This standard focuses on climate-related disclosures, including greenhouse gas (GHG) emissions, energy consumption, and the company's efforts to mitigate climate change.

Under ESRS E1, companies are required to report on:

• Energy consumption: This includes the total amount of energy consumed from various sources (e.g., electricity, fuels) and the proportion of renewable energy used.

• GHG emissions: This encompasses the reporting of direct (Scope 1) and indirect (Scope 2) GHG emissions, and potentially other indirect emissions (Scope 3), if applicable.

• Climate change mitigation strategies: Details on initiatives and measures taken to reduce energy consumption and GHG emissions.

These disclosures help stakeholders understand the environmental impact of the company's operations and assess its commitment to sustainability and climate action.