As an international financial institution with a public mandate, the European Stability Mechanism (ESM) strives to implement environmental, social, and governance (ESG) best practices within its operations.
This 2023 publication, which is our sixth annual carbon footprint report, is a testament to ESM’s continued commitment to transparently report on its ESG efforts. It provides a comprehensive account of ESM’s operational carbon footprint in the year 2023, comparing the performance against previous years, as well as the 2018 baseline.
The calculations within the report were performed with the assistance of Deloitte Luxembourg (Société à Responsabilité Limitée), who conducted two independent reviews of the subsequent calculations and assumptions, following the four eyes principle.
As in previous years, the carbon footprint estimates are based on an extensive review of internal and external documentation and activity data, as well as exchanges with external data providers. The report is prepared per guidelines from the International Greenhouse Gas Protocol – a Corporate Accounting and Reporting Standard. Additionally, using the same methodology applied to the previous reports as set out by EcoAct 2020 Homeworking Emissions Whitepaper, a separate chapter with estimates on teleworking-related emissions has been included in this report.
It is important to note that during the Covid-19 pandemic, numerous national and ESM-specific measures were implemented to contain the spread of the pandemic and ensure the safety of staff. These measures significantly altered the ESM’s business operations, leading to a stark fall in the institution’s greenhouse gas (GHG) emissions in 2020 and a modest decline in 2021. Following the easing of Covid-19 pandemic-related restrictions and corresponding return to office presence and pre-pandemic mobility practices, including a tour of the ESM Member States Capitals by the ESM management, in light of the appointment of the new managing director, GHG emissions linked to the ESM’s activities have increased proportionally over the last reporting years. Moreover, given the objective of generating more transparent and accurate reporting, the ESM has continuously reviewed and updated its carbon footprint methodology and scope. As a result, new emission categories, or expansions in the scope of already reported categories, were added to this year’s report. Such additions coupled with a return to pre-pandemic patterns of operation naturally led to an increase in reported GHG emissions. However, compared to these pre-pandemic emission figures, the ESM has maintained its trend of continued reduction of its overall consumption and GHG emissions.
The ESM is committed to producing a carbon footprint report on an annual basis to monitor its progress in decreasing its carbon footprint. In the spirit of transparency, the report is made available to the public.
The ESM has continued implementing measures aimed at strengthening its existing environmental practices.
To further reduce mobility-related carbon emissions, the ESM updated its travel policy to encourage staff to consider the environmental impact of their work-related travel. To facilitate this, information on estimated carbon emissions has been systematically made available to ESM staff when choosing travel options. These efforts were adopted in conjunction with other practical initiatives, such as the addition of four electric car charging stations at the ESM premises. Additionally, the ESM expanded its facilities for electric bikes in May 2024 by installing charging stations, secure lockers, and repair stations, with capacity for 18 bikes and five cargo bikes. This initiative aims to encourage sustainable transportation among employees and reduce carbon emissions.