ESRS E1: climate change

What does ESRS E1 require?

ESRS E1 covers climate change mitigation, adaptation and energy. Its disclosure requirements in the revised standard are:

A company that concludes climate change is not material must explain that conclusion in detail. See double materiality explained.

What did the 2026 revision change in ESRS E1?

• Scenarios: scenario analysis is reported only where the company has carried it out, but the resilience assessment remains.
• Transition plan: a plan not compatible with 1.5 degrees can be reported if the company says so transparently, and financial resources can be given as ranges.
• Targets: prescribed target years and five-yearly updates were dropped, but targets must still be gross and absolute, set before removals, carbon credits or avoided emissions, and consistent with the inventory.
• Emissions boundary: companies can use the GHG Protocol's financial control, operational control or equity share approach (see organisational boundaries), instead of the original standard's combined approach.
• Fewer metrics: energy intensity and GHG intensity per net revenue were removed, and anticipated financial effects can be given as ranges, with phase-ins.

Scope 3 remains mandatory where climate is material. See the revised ESRS.

ESRS E1 in practice: a manufacturer's key disclosures

An EU manufacturer in scope from 2027 drafts its E1 disclosures. Its base year is 2023, with scope 1 and market-based scope 2 emissions of 12,000 tonnes, and its target is a 42% cut by 2030, gross, without counting carbon credits.

In 2026, scope 1 and 2 emissions are 9,600 tonnes, down 20%, on track for the 2030 target of 6,960 tonnes. It reports scope 2 on both methods, and scope 3 of 98,000 tonnes across its significant categories, led by purchased steel, estimated partly with the spend-based method, and the use of its products. Energy use is 60,000 MWh, 35% renewable. It bought carbon credits to support a forest project, which it reports under E1-9 separately from its emissions and does not count towards its target. Its transition plan names its levers, heat pumps, renewable electricity contracts and lower-carbon steel, with the capital expenditure behind each. See the 15 scope 3 categories and location-based and market-based scope 2. See climate transition plans.

What are anticipated financial effects?

E1-11 asks for the financial effects a company expects from material physical and transition risks and from climate opportunities, such as the carrying amount of assets exposed to flooding, revenue from activities facing carbon costs, and revenue from low-carbon products. The figures should be consistent with the assumptions in the financial statements, such as those used in impairment testing. See current and anticipated financial effects, connected information and climate risk in impairment testing.

How does ESRS E1 compare with IFRS S2?

The two were designed to be largely interoperable. Both require scope 1, 2 and 3 emissions under the GHG Protocol, a transition plan where one exists, climate resilience and financial effects. Differences remain: ESRS E1 requires market-based scope 2 as well as location-based, energy data and carbon credit details, and it sits within double materiality, so it also covers impacts. A company reporting under both maps the extra datapoints rather than preparing two sets of figures. See IFRS S2.

When does the revised ESRS E1 apply?

The revised standards apply to financial years beginning on or after 1 January 2027. For 2026 reports, companies can use the original ESRS, the revised standards, or the original standards with selected reliefs. Companies newly in scope after the Omnibus start with 2027, and non-EU groups follow from 2028. See the CSRD for non-EU companies.

This guide is general information. It is not tax or legal advice for your situation.