First peek into the #climate standard prototype – what disclosures and which indicators will be mandated to companies? The latest article by Frank Bold provides an overview of the process and timeline for the development of the European standards and explores the content of the first prototype on climate reporting.
In September, the EFRAG project task force made publicly available a working paper on a ‘Climate standard prototype’ which gives a first insight into the future European standards on this specific and crucial issue. The prototype has three main features.
First, it clarifies what information is material with respect to climate targets and net-zero ambitions, and in what form such information must be provided when companies decide to adopt and report on targets
Second, it provides a comprehensive structure for presentation of climate-related information to facilitate easy assessment and comparison by investors. However these requirements are inherently flexible because most of them concern transparency of a company’s own strategy, assessments of risks and opportunities, and governance. It is ultimately up to the company to decide these matters and up to the market to set the bar.
Third, it rests on a compact mandatory data set, which is not negotiable, but also not difficult to comply with:
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- How much energy is the company using, and what are the energy sources.
- How much direct and indirect greenhouse gas emissions does the company have?
- What targets has the company adopted – if any – and what progress is it making?
Read the full article here: bit.ly/3qsg6pZ
Written by Frank Bold as part of the series of monthly articles on sustainability reporting in 2021. The previous articles covered various topics such as climate transition plans, SMEs´ reporting, sustainability due diligence or the business benefits of ESG reporting.
Note that Future-Fit supports the work of the Alliance for Corporate Transparency.
