What is a high climate impact sector?
ESRS applies this category to activities in Sections A to H and Section L of the NACE classification in Regulation (EC) No 1893/2006. It classifies work performed, not an undertaking's emissions.
Why does a high climate impact sector matter to you?
When climate and its energy information are material, current E1-5 paragraph 38 requires five fossil-energy categories in megawatt-hours (MWh). Paragraphs 40 to 43 also require total energy from covered activities divided by their net revenue, plus a reconciliation of that revenue to the financial statements.
The Commission adopted revised ESRS on 3 July 2026, but it was not in force on 20 August. Revised E1-7 paragraph 27 keeps the fossil split and removes the energy-intensity disclosure. Once effective, undertakings subject to ESRS may choose the revised standards for financial years beginning in 2026; the revised standards apply for financial years beginning on or after 1 January 2027.
How do you apply the high climate impact sector test?
List your operating activities, assign NACE codes from the work performed, and keep the descriptions that support each code. Check whether each code falls in Sections A to H or L. Under the current standard, one qualifying activity makes the fossil split cover every operation (E1-5 AR 33). Both sides of the energy-intensity ratio, MWh and net revenue, are limited to qualifying activities (E1-5 AR 36).
What mistakes should you avoid?
- Copying a customer's industry code instead of classifying your activity.
- Excluding non-covered operations from the current paragraph 38 fossil split.
- Mixing company-wide MWh with qualifying-activity revenue for intensity.
- Using revised E1-7 without recording the version and reporting year.
Are all automotive suppliers in a high climate impact sector?
No. NACE 29.31 and 29.32 motor-vehicle parts manufacturing are in Section C. Sales or engineering work needs a separate code check.
Does this classification put my company in CSRD scope?
No. Check whether the company is subject to its country's CSRD rules and which ESRS version applies. Then assess materiality and apply the sector test.