# Evaluation of CSRD ESRS E1 requirements Various criteria must be assessed to verify the compliance of the report with the different requirements of ESRS E1. In the [appendix table](https://www.bilancarbone-evaluation.com/guide-devaluation-des-bilans-en/appendix-1-blank-self-assessment-report), each column represents a method/report and each row represents a criterion to be assessed. Below, the criteria are defined by theme and the overall expectations are given, for the reporting assessment of the CSRD ESRS E1 standard (as ESRS E1 data points are constantly evolving, for more information, we recommend referring to the [bibliography](https://www.bilancarbone-evaluation.com/guide-devaluation-des-bilans-en/resources/bibliography#csrd)).
On report renewal The report must be carried out every year.
On the operational boundary According to ESRS E1-6, the organisation must report: * gross Scope 1 GHG emissions * gross Scope 2 GHG emissions * gross Scope 3 GHG emissions * total gross GHG emissions The organisation must include in its reporting all GHG emissions (Scopes 1 and 2) over which it has operational control. It must also include Scope 3 GHG emissions occurring in its value chain. Gross Scope 2 GHG emissions must include: * gross GHG emissions on a location-based basis (using information on the local energy mix) * and gross GHG emissions on a market-based basis (using market-based information, depending on the electricity the organisation chooses to purchase).
On energy consumption According to ESRS E1-5, the organisation must present its total energy consumption linked to its own activities, from non-renewable and renewable sources, broken down by source. Where applicable, the organisation must break down and separately present its non-renewable energy production and renewable energy production.
On avoided emissions and removals According to ESRS E1-7, the organisation must report on GHG removal and sequestration projects it has developed in its value chain, as well as the amount of reductions or removals of GHG emissions under climate change mitigation projects outside its value chain and financed through the purchase of any type of carbon credits.
On risk identification The organisation must describe the process for identifying and assessing climate-related impacts, the analysis of climate-related physical risks in its own operations and across its entire value chain, as well as the climate-related transition risks and opportunities in its own operations and across its entire value chain.
On adaptation and mitigation policies According to ESRS E1-2, the report must summarise the policies implemented by the organisation (and how they are implemented) to manage its impacts, risks and opportunities related to: * mitigation of and adaptation to climate change * energy efficiency * the deployment of renewable energy
On the transition plan According to ESRS E1-1, the organisation must report a transition plan (with one or more transition pathways, a quantified action plan, the means for its implementation, an assessment of locked-in emissions...). The report must indicate whether or not the company is excluded from the European benchmarks of the Paris Agreement. It must also present an explanation of how the transition plan is integrated into the overall business strategy and the organisation's financing plan. Also, this reporting must state whether this transition plan is approved by the organisation's administrative, management and supervisory bodies; if the organisation does not have a transition plan, this section must then specify whether and, if so, when it will adopt one.
On the vision and objectives of the transition plan According to ESRS E1-1, if applicable, an explanation of the objective pursued by the company to align its economic activities (revenue) with the Taxonomy Regulation (EU) 2020/852, including all delegated regulations related to climate change mitigation and adaptation and its future alignment plans with the taxonomy. According to ESRS E1-4, the organisation indicates whether and how it has set its emissions reduction targets or any other target enabling it to manage material impacts, risks and opportunities related to climate. GHG emission reduction targets must be presented, for the three scopes, in absolute terms and, where relevant, in intensity terms. GHG emission reduction targets must at least include target values for 2030 and, if available, for 2050. In addition, the organisation indicates whether the GHG emission reduction targets are science-based and compatible with limiting global warming to +1.5°C.
On the actions of the transition plan According to ESRS E1-1, the transition plan must contain an action plan detailing all the actions the organisation will take to achieve its decarbonisation target and thus comply with the emission reduction pathway previously defined. It must also provide details of the investments and financing enabling these actions to be implemented.
On quantifying the actions According to ESRS E1-1, the action plan must be quantified.
On the reduction pathway According to ESRS E1-1, the transition plan must contain one or more emission reduction pathways consistent with the carbon budgets in force
On monitoring According to ESRS E1-1, the report must present the current state of progress and advancement of the organisation in implementing its transition plan. It must also present an assessment of "locked-in" emissions.
On neutralisation and mitigation projects According to ESRS E1-7, the organisation must indicate the GHG removal and sequestration projects it has developed from its own operations and within its upstream and downstream value chain, as well as the amount of reductions or removals of GHG emissions from climate change mitigation projects outside its value chain and financed through the purchase of any type of carbon credits.
On internal carbon pricing According to ESRS E1-8, the organisation must report whether it applies internal carbon pricing systems, and if so, how these support its decision-making and encourage the implementation of climate-related policies and objectives.\ \ The information must specify: * the type of internal carbon pricing system * the specific scope of the carbon pricing mechanisms (activities, geographies, entities, etc.) * the carbon prices applied according to the type of mechanism and the critical assumptions used to determine the prices, including the source of the carbon prices applied and why these are considered relevant for the chosen application * for the current year, the approximate gross GHG emission volumes for Scopes 1, 2 and 3 in metric tons of CO2 equivalent (tCO2e) covered by these mechanisms.
On financial effects According to ESRS E1-9, the organisation must report: the potential financial effects related to material physical risks, the potential financial effects related to material transition risks, its potential to capture significant climate-related opportunities.