European Sustainability Reporting Standards (ESRS) E1: The OKRs of sustainability?

In business, the concept of Objectives and Key Results (OKRs) has changed the way organizations set goals and measure progress. But what if we claim that there is a similar concept for pursuing sustainability goals? This is where the European Sustainability Reporting Standards (ESRS) * come in, a comprehensive guide for measuring progress made in achieving sustainability goals.

From 2024, companies that meet at least two of the following three criteria must publish a comprehensive sustainability report in accordance with ESRS:

• Balance sheet total > 20 million euros
• Net turnover > 40 million euros
• number of employees > 250

Smaller companies will also be affected and must provide their customers with data to meet reporting requirements.

^{*ESRS is not just about calculating and reporting CO2 emissions. It addresses all aspects of sustainability and includes general, environmental, social and governance aspects. The ESRS comprises a total of 12 sub-categories.}

ESRS and OKRs: A comparison

Just like the OKR, the ESRS E1 is a framework that sets clear goals — the precise tracking and reduction of greenhouse gas emissions.

The objectives must be formulated in the following areas:

• Energy efficiency and consumption reduction
• Material efficiency and consumption reduction
• Switching to other fuels
• electrification
• Using renewable energy
• Expiry or substitution of product changes
• Expiry or substitution of process changes

The ESRS provides detailed instructions on how to calculate and disclose emissions in various areas using various methods and standards, such as the GHG Protocol and IPCC guidelines.

Similar to the measurable key results in OKRs, the ESRS underlines the importance of measurement. It provides detailed instructions on how to calculate emissions to ensure that progress towards achieving goals is quantifiable, comprehensible and comparable.

Transparency is another common principle of ESRS and OKR. The ESRS require disclosure of the methods and emission factors used, thus promoting accountability and transparency. OKRs are also usually disclosed within an organization to promote coordination and collaboration.

Regular reviews and updates are essential for both methods.

The power of frameworks: Focus on the path to achieving goals

Despite their different priorities, ESRS and OKRs have a common purpose: to make progress towards the goals set. While OKRs are a general framework that can be applied to any goal, the ESRS was developed specifically for sustainability goals.

In the case of ESRS E1, the goal is clear — Net Zero Emissions in 2055

Similar to OKRs, ESRS offer a structured approach to achieving goals. They provide a clear roadmap for organizations that ensures that every step towards a better future is taken.

conclusion

In conclusion, the European Sustainability Reporting Standards E1 can in fact be regarded as the OKRs for progress in sustainability. They provide a solid framework for organizations to set, track, and achieve their sustainability goals.

For a large number of companies, logistical activities account for the majority of their CO2 emissions. How prepared is your company to report accurate data on CO2 emissions?

In less than 5 minutes, evaluate the accessibility, availability, and completeness of relevant data required for CO2 reporting in the area of transport logistics. Assess your status quo and make informed decisions for a sustainable future.