Posted on 08 November 2022

This briefing aims to promote a consistent EU regulatory framework on corporate climate and nature targets and transition plans. We raise in particular the issues of the Corporate Sustainability Reporting Directive (CSRD), the Corporate Sustainability Due Diligence Directive (CSDDD), the Capital Requirement Regulation and Directive and Solvency II, the EU Green Bond Standard, the Benchmark Regulation and the EU Taxonomy. The objective is to identify which EU regulations or directives are integrating or should integrate requirements related to corporate climate and nature targets and transition plans, and how to articulate them adequately to ensure a consistent EU regulatory framework.  

WWF recommends that the establishment, disclosure and supervision of corporate targets and transition plans be mandatory and that the European Commission, Parliament and Council integrate such requirements in relevant legislative proposals, in order to create a consistent EU regulatory framework on corporate targets and transition plans. This would increase the contribution of companies to the achievement of the EU Strategy for Financing the Transition to a Sustainable Economy, the EU Green Deal and EU environmental goals, while managing transition risks.

The briefing is structured in five parts: 

• Effectiveness: Mandatory corporate science-based targets and transition plans are a must to achieve EU sustainability objectives
• Feasibility: Several robust market precedents
• Necessity: The limitations of existing initiatives 
• Concreteness: Overview of the necessary EU regulatory changes
• Monitoring: Building an EU supervisory framework for corporate targets and transition plans.