Paris Agreement Alignment
CSRD requires companies to disclose how their strategy and targets are compatible with the Paris Agreement goal of limiting global warming to 1.5°C. This is not a box-tick — assurers and investors will scrutinise the evidence base for any 1.5°C alignment claim.
CSRD requires companies to disclose how their strategy and targets are compatible with the Paris Agreement goal of limiting global warming to 1. The Paris Agreement (2015) commits signatory nations to limiting global warming to well below 2°C above pre-industrial levels, pursuing efforts to limit the increase to 1.
What Paris alignment means for ESRS E1
The Paris Agreement (2015) commits signatory nations to limiting global warming to well below 2°C above pre-industrial levels, pursuing efforts to limit the increase to 1.5°C. For companies, Paris alignment means setting targets and strategies consistent with the global emission reductions required to achieve this goal.
Under ESRS E1-1 (transition plan) and E1-4 (targets), companies must disclose whether their targets are compatible with limiting warming to 1.5°C — and if so, on what basis they make this claim.
The IPCC Special Report on 1.5°C (SR1.5, 2018) defines what global emissions pathways are consistent with 1.5°C. The IEA Net Zero Emissions by 2050 (NZE) scenario translates this into sector-specific energy and emissions trajectories. These are the primary scientific references for 1.5°C alignment claims.
The evidence base for 1.5°C alignment claims
Three approaches provide credible evidence for 1.5°C alignment:
SBTi validation: Science Based Targets initiative validates company targets against 1.5°C-consistent methodologies. SBTi near-term targets must achieve at least 4.2% annual absolute emission reduction for Scope 1 and 2 (corporate standard). SBTi validation is the strongest single piece of evidence and satisfies ESRS E1-4 science-alignment requirements without further justification.
IEA NZE alignment: Compare your decarbonisation trajectory against the IEA Net Zero Emissions by 2050 sector pathway for your industry. If your targets are at or below the IEA NZE trajectory for your sector, the claim is defensible.
IPCC carbon budget approach: Calculate your company's proportionate share of the remaining global carbon budget consistent with 1.5°C and demonstrate your targets do not exceed this share. Technically rigorous but complex — typically used by large companies with in-house climate economics capability.
The Scope 3 problem for 1.5°C claims
A 1.5°C alignment claim that covers only Scope 1 and 2 is increasingly untenable. For most companies, 70–90% of total emissions are in Scope 3. A target that eliminates Scope 1 and 2 while leaving Scope 3 unaddressed does not represent Paris alignment.
SBTi requires Scope 3 targets where Scope 3 represents more than 40% of total emissions — which applies to most companies. The Scope 3 target must cover at least two-thirds of Scope 3 emissions.
For ESRS E1-4 and E1-1: Paris alignment claims must be supported by Scope 3 targets or a credible plan to develop them. A transition plan that is silent on Scope 3 while claiming 1.5°C alignment will attract assurer scrutiny and investor challenge.
Frequently asked questions
Can we claim 1.5°C alignment without SBTi validation?
Yes — but you must document the scientific basis for the claim. ESRS E1-4 does not mandate SBTi. However, SBTi is the most widely recognised validation pathway and reduces the burden of proof significantly. Non-SBTi claims require more extensive documentation of methodology and scenario references.
What if our sector has no SBTi methodology yet?
SBTi has sector-specific methodologies for most major sectors. For sectors where no methodology exists, SBTi's cross-sector pathway (absolute contraction approach) applies as a default. Check the SBTi website for your sector's current status.
Does 1.5°C alignment require a net zero target?
Not explicitly — but the IPCC 1.5°C pathways require global net zero CO2 emissions by around 2050. A company on a 1.5°C trajectory implicitly needs a net zero or near-net-zero target by 2050. The absence of a long-term target weakens a 1.5°C alignment claim.