This document provides informal guidance for companies implementing climate change mitigation transition plans in line with the European Sustainability Reporting Standards (ESRS).

Main points of the document:

• The document details the ESRS disclosure requirements, linking them to EU legislation such as Corporate Sustainability Due Diligence Directive (CSDDD) a EU taxonomy.
• Companies must disclose their targets and explain how they are compatible with the 1.5°C goal set by the Paris Agreement.
• Companies must describe decarbonization levers, such as operational and product modifications that support emission reductions.
• They are also required to disclose investments and financingthat support these plans, including capital expenditure (CapEx) in line with the EU taxonomy.
• The document emphasizes that Climate change mitigation transition plans must be embedded in the company's overall strategy with explicit support from management bodies. This ensures alignment between sustainability goals and company planning.
• Companies are required to provide updates on progress in implementing their transition plans. This includes monitoring the effectiveness of planned measures and their contribution to emission reduction targets.
• The guidelines emphasize the importance of considering social and biodiversity impacts, risks and opportunities associated with a climate change mitigation transition plan. Companies must disclose how transition plans may impact workers, communities and ecosystems, and how they may depend on adaptation measures.

Document structure:

• Chapter 2 explains the European framework for the disclosure of transition plans, presents the E1-1 disclosure requirement for the climate change mitigation transition plan and the broader context of the European Union requirements.
• Chapter 3 details what and how to disclose in relation to each data point required in Disclosure Requirement E1-1 – Climate Change Mitigation Transition Plan.
• Chapter 4 It details how other sources can be taken into account when preparing ESRS disclosures and provides references to other reporting frameworks on climate change mitigation transition plans.
• Chapter 5 supplements chapters 2 to 4 with answers to frequently asked questions (FAQ).

Other important information:

• The document emphasizes the importance of taking into account the social impacts of the transition to a low-carbon economy, especially when it comes to workers and communities.
• It also warns of potential impacts on biodiversity and the need to take them into account when planning the transition.
• The document provides examples of how companies can disclose information about their progress and challenges in implementing transition plans.

This summary provides an overview of the key points of the “Transition Plan IG V1.7.5”. It is recommended that you read the entire document to gain a full understanding of the guidelines and requirements. Spring