Evaluating corporate climate change reporting compliance under CSRD with ESRS E1 standards

The Corporate Sustainability Reporting Directive (CSRD), introduced by the European Union (EU), aims to improve transparency and consistency in sustainability reporting, replacing the Non-Financial Reporting Directive (NFRD). This aligns with the European Green Deal and the UN Sustainable Development Goals (SDGs), requiring around 50,000 companies to report standardized and externally audited Environmental, Social, and Governance (ESG) data [3] [13]. A key update in the CSRD is double materiality, which mandates reporting on both financial risks from sustainability issues and corporate environmental and social impacts [14]. The directive also enforces European Sustainability Reporting Standards (ESRS), integrates ESG data into financial reports, and expands reporting requirements to large companies and specific SMEs [13] [15]. Within ESRS, ESRS E1 (Climate Change) establishes how businesses must report their climate-related risks, mitigation efforts, and financial impacts, requiring disclosures on GHG emissions, climate risk adaptation, and financial effects of climate-related factors [7]. This study evaluates how Enel, a major European energy company, adapted its climate-related sustainability reporting practices to comply with the CSRD, specifically focusing on the ESRS E1 on climate change. Using qualitative and quantitative analysis methods, the research assesses Enel's climate-related sustainability reports from 2021 to 2023, focusing on transparency, completeness, and compliance with ESRS E1 disclosure requirements. Key findings include significant improvements in climate risk assessment, with a notable integration of double materiality into strategic planning . However, some gaps remain in emission targets sector, energy efficiency goals, and carbon removal disclosures. Addressing these gaps will be essential for Enel’s continued compliance and competitive positioning within the evolving regulatory landscape.