ESRS E1 Climate Targets
ESRS E1-4 requires companies to disclose their climate-related targets — GHG reduction targets, energy efficiency targets, and renewable energy targets. These must be science-based, time-bound, and cover Scope 1, 2, and 3 emissions.
ESRS E1-4 requires companies to disclose their climate-related targets — GHG reduction targets, energy efficiency targets, and renewable energy targets. For each climate-related target you have set, ESRS E1-4 requires disclosure of: the target metric (absolute emissions reduction, emissions intensity reduction, percentage renewable energy); the target boundary (which scopes and activities are covered); the base year and base year emissions; the target year; and interim milestones.
Required target disclosures under ESRS E1-4
For each climate-related target you have set, ESRS E1-4 requires disclosure of: the target metric (absolute emissions reduction, emissions intensity reduction, percentage renewable energy); the target boundary (which scopes and activities are covered); the base year and base year emissions; the target year; and interim milestones.
You must also disclose whether the target has been validated by a third party (e.g. SBTi), and whether it is consistent with limiting global warming to 1.5°C.
If you have not set targets, you must explain why and disclose when you plan to set them.
Absolute vs intensity targets
Absolute targets commit to reducing total GHG emissions by a specified amount — e.g. reduce Scope 1 and 2 emissions by 50% by 2030 vs 2019 base year. These are preferred by investors and science-based target frameworks.
Intensity targets commit to reducing emissions per unit of output — e.g. reduce emissions per tonne of product by 40% by 2030. These allow emissions to grow if production grows. They are appropriate where significant growth is expected but must be supplemented with absolute targets under SBTi.
CSRD/ESRS allows both types but requires you to explain the rationale for your chosen metric.
SBTi validation and ESRS E1-4
Science Based Targets initiative (SBTi) validation is not mandatory under ESRS E1-4, but provides the strongest possible basis for claiming 1.5°C alignment. SBTi-validated targets satisfy the science-alignment requirement of ESRS E1-4 without further justification.
For companies without SBTi validation, you must document how your targets are consistent with 1.5°C — referencing IEA scenarios, IPCC pathways, or sector-specific benchmarks.
SBTi is launching the Corporate Net-Zero Standard v2.0 in 2025 — monitor updates as this will affect target-setting requirements.
Frequently asked questions
Do we need a net zero target for ESRS E1?
ESRS E1 does not mandate a net zero target specifically. It requires disclosure of any targets you have set. However, not having a long-term (2050) target will be scrutinised by investors and may affect your ESG ratings.
Can we use 2020 as our base year?
Yes — base year selection is flexible but must be justified. 2019 is the most common pre-COVID base year. If you choose a year affected by abnormal activity (e.g. 2020), you may need to provide restated baseline figures.
Do Scope 3 targets need to cover all 15 categories?
No — only material Scope 3 categories need to be covered by targets. Your materiality assessment determines which categories are material. Typically Categories 1 (purchased goods) and 11 (use of sold products) are most material.