PLCY-ESGINTRO

ESG Policies

The Climate Change Policy is foundational to any sustainability framework and a central component of CSRD, ISO 14064, and related ESG standards.

Climate Change Policy Templates

1. Policy Overview

• Purpose:
  • Define the organization’s commitment to addressing climate change.
  • Align with global frameworks such as the Paris Agreement, SDGs, and relevant standards like CSRD and ISO 14064.
• Scope:
  • Specify the boundaries of the policy (e.g., organization-wide, including supply chain impacts).

2. Vision Statement

• Articulate the long-term goal:
  • “To achieve net-zero greenhouse gas (GHG) emissions across all operations by 2040 while supporting global efforts to limit warming to 1.5°C.”

3. Objectives

Clearly outline measurable objectives:

1. Reduce Scope 1 and 2 GHG emissions by 50% by 2030.
2. Transition to 100% renewable energy across all operations by 2025.
3. Conduct annual assessments of Scope 3 emissions and implement reduction strategies.
4. Offset residual emissions through verified carbon credits, ensuring all offsets align with the highest industry standards.

4. Governance and Accountability

• Roles and Responsibilities:
  • Assign ownership of the policy to specific roles (e.g., Sustainability Officer, Climate Task Force).
• Oversight:
  • Include a governance structure for monitoring progress (e.g., quarterly reviews by the Board Sustainability Committee).
• Reporting:
  • Commit to public reporting on progress via sustainability statements, aligned with CSRD and GRI 305.

5. Policy Commitments

Detail specific actions to address climate change:

1. GHG Emission Reductions:

• Implement energy efficiency measures across facilities.
• Transition vehicle fleets to electric or low-emission alternatives.
• Reduce reliance on fossil fuels in production processes.

2. Renewable Energy Adoption:

• Procure energy from renewable sources (e.g., solar, wind).
• Invest in on-site renewable energy generation.

3. Supply Chain Engagement:

• Collaborate with suppliers to reduce Scope 3 emissions.
• Set science-based targets for major suppliers.

4. Resilience and Adaptation:

• Identify climate risks and integrate mitigation strategies into business continuity planning.
• Adapt facilities and operations to withstand climate impacts.

5. Education and Advocacy:

• Provide training to employees on climate-related responsibilities.
• Advocate for climate action in industry forums and policy discussions.

6. Enforcement and Compliance

• Internal Monitoring:
  • Define how adherence to the policy will be monitored (e.g., through internal audits).
• Non-Compliance:
  • Specify consequences for failing to meet policy requirements (e.g., corrective action plans).
• External Verification:
  • Commit to third-party verification of GHG data and emission reduction claims.

7. Key Performance Indicators (KPIs)

Include measurable KPIs to track progress:

• Annual Scope 1, 2, and 3 emissions (tons CO₂e).
• Percentage of energy sourced from renewables.
• Reduction in energy intensity per unit of production.
• Carbon offset usage and quality ratings.

8. References and Standards

• List standards and frameworks the policy aligns with:
  • CSRD: ESRS E1 Climate Change.
  • ISO 14064: GHG inventory and verification.
  • GRI 305: Emissions reporting.
  • Science-Based Targets Initiative (SBTi): Net-zero pathways.
  • Task Force on Climate-Related Financial Disclosures (TCFD): Risk assessment.

9. Review and Updates

• Commit to periodic review and updates:
  • “This policy will be reviewed annually to ensure alignment with evolving climate science and regulatory requirements.”

Next Steps

1. Tailoring the Policy:

• Customize the template to fit organizational needs and industry-specific climate challenges. 2. Linking to Procedures:
• Develop supporting procedures (e.g., GHG inventory, energy audits) tied to the policy commitments. 3. Implementation Guidance:
• Provide a roadmap for rolling out the policy, including stakeholder engagement and communication.