The need to curb greenhouse gas emissions isn’t limited to companies — regulators generate emissions too. The European Securities and Markets Authority (ESMA) is now setting out its plan to reduce its carbon footprint.
The regulator has published its first climate transition plan, committing to cut its direct GHG emissions by 31.4% from 2023 levels by 2030 — and by 15.4% by 2027 — primarily by targeting staff travel, energy usage and food consumption.
In the long term, the regulator may use carbon credits to offset emissions. But in the short term, it’s prioritizing direct action to reduce its total GHG output.
Near-term measures include introducing an annual GHG budget to manage emissions generated by travel; consolidating office usage to reduce energy consumption; and incentivizing the purchase of goods and services with lower emissions.
For instance, under the plan, ESMA will reduce the number of participants per business trip and replace short-haul flights with high-speed train travel.
The regulator said its 2027 target currently appears achievable, though its ability to meet the 2030 goal depends partly on factors outside its control.
For example, while the expansion of high-speed rail networks could support a shift from air travel to rail, “the pace and scope of high-speed rail development across Europe remains outside ESMA’s direct control,” it noted.
Ultimately, the regulator aims to be carbon neutral by 2050.
ESMA also pledged to provide annual reporting on its progress toward its emissions-reduction goals.