The European Union's Climate Disclosure Rules: What You Need to Know

Summary The EU requires sustainability reporting in the management report against the European Sustainability Reporting Standards (ESRS), with climate disclosures under ESRS E1 covering transition plans, climate risk, targets, energy, and Scope 1, 2, and 3 emissions. Wave one companies (large public-interest entities with more than 500 employees) have reported since financial year 2024; every other company above the new thresholds reports on financial year 2027, published in 2028. Scope covers EU companies and groups with more than 1,000 employees and net turnover above EUR 450 million, plus n