What information is provided to track the effectiveness of climate change mitigation and adaptation policies and actions through targets, as required by ESRS 2 MDR-T?

1. Target Definition: Specific Climate Targets: Clearly define the climate change mitigation and adaptation targets your company has set. These targets could include: Carbon emissions reductions (e.g., reducing greenhouse gas emissions by a certain percentage). Energy efficiency improvements (e.g., reducing energy consumption per unit of output). Renewable energy use (e.g., achieving a specific percentage of energy from renewable sources). Adaptation strategies (e.g., improving resilience to climate impacts, such as changes in weather patterns, water availability, or temperature fluctuations). Measurable and Time-Bound: Ensure the targets are measurable, achievable, and time-bound (e.g., achieving 50% reduction in emissions by 2030). 2. Measurability: Key Performance Indicators (KPIs): Define the KPIs or metrics that will be used to track the progress of your climate targets. Examples might include: CO2 emissions per unit of production. Energy consumption per employee or per product unit. Percentage of energy sourced from renewable resources. Provide a baseline for comparison to measure progress against. 3. Timeframe: Time Horizons for Targets: Specify the timeframe for achieving the climate targets, such as: Short-term (1-2 years): Immediate actions like reducing energy waste or switching to low-carbon energy. Medium-term (3-5 years): Implementing operational changes or scaling up energy efficiency projects. Long-term (5-10 years or beyond): Transforming business operations to fully integrate low-carbon technologies or achieving net-zero emissions. Ensure the timeframes are realistic and aligned with your business model and regulatory landscape. 4. Progress Monitoring and Reporting: Tracking and Reporting Mechanisms: Explain how progress towards the targets will be tracked and reported. This could include: Internal monitoring systems for emissions, energy use, and other climate-related metrics. External reporting in sustainability or annual reports, potentially with third-party verification or audits. Specify reporting frequency (e.g., quarterly, annually) and whether progress will be communicated through public channels or to specific stakeholders. 5. Accountability: Responsibility for Achieving Targets: Identify the departments or teams responsible for achieving the climate targets (e.g., sustainability teams, energy management departments, operations). Specify accountability measures, such as executive-level oversight, performance reviews, and linking targets to executive compensation or incentives. 6. Adjustments and Updates: Review and Adjustments to Targets: Explain the process for reviewing and potentially adjusting targets over time. For example: Adjusting targets if new scientific data or regulatory requirements emerge. Revising targets if technology developments or business conditions change. This ensures that targets remain relevant and achievable. 7. Alignment with External Standards: Standards and Frameworks: Mention whether your climate targets are aligned with external standards or frameworks such as: The Paris Agreement or national climate commitments. Science-Based Targets Initiative (SBTi). The EU Taxonomy for sustainable activities. This will help stakeholders understand how your targets fit into broader global or industry efforts to mitigate and adapt to climate change.