The European Securities and Markets Authority published its first Climate Transition Plan on Tuesday, outlining its roadmap to cut greenhouse gas emissions from internal operations by 31.4 percent by 2030 compared to 2023 levels.

The EU’s financial markets watchdog pledged to reduce emissions by 15.4 percent by 2027, as part of a broader strategy to achieve climate neutrality by 2050. The initiative aligns with the European Union’s Green Deal and the Paris Agreement’s 1.5 degrees Celsius climate target.

“As market participants step up their transition strategies, we must hold ourselves to the same standards,” said Natasha Cazenave, ESMA Executive Director, in a statement. “This plan is a demonstration of that commitment.”

Cutting Emissions Across Operations

ESMA’s emissions reduction strategy focuses on three main areas: staff business travel, energy consumption at its Paris headquarters, and food-related emissions from its canteen and catering services. These areas accounted for the majority of ESMA’s 457.1 tonnes of carbon dioxide equivalent emissions in 2023.

Under the transition plan, ESMA aims to:

  • Introduce an annual GHG budget for air travel
  • Optimize floor occupancy to cut energy use
  • Incentivize low-carbon meal choices

“By 2027, a 70.3 tCO₂e reduction appears achievable through short-term measures entirely within ESMA’s control,” the agency said.

Achieving the Targets

To meet its 2030 target of cutting 143.6 tCO₂e, ESMA will rely not only on internal levers but also on external factors, such as improvements in aviation efficiency and the decarbonization of Paris’s heating network.

Switching long-haul flights from business to premium economy class alone could slash emissions by up to 45.5 tCO₂e.

Further reductions will come from shifting short-haul flights to trains, revising meal offerings, and adopting more energy-efficient workspace arrangements.

ESMA also projects that implementation could lead to annual cost savings of €85,000–€120,000 by 2030, particularly in travel, energy and office rentals.

No Immediate Use of Carbon Offsets

While the regulator is open to using carbon credits or sustainable aviation fuel certificates in the long term, it ruled out relying on them for short-term goals.

“Actions to reduce gross GHG emissions should be prioritized,” the plan stated, citing cost, accountability, and integrity concerns around current offset markets.

Governance, Oversight and Staff Engagement

ESMA’s executive director approved the transition plan following input from its Management Board. Implementation is monitored by the internal Eco-management Steering Committee, with quarterly updates on travel emissions and annual reporting in ESMA’s Environmental Statement.

Staff engagement will be central to execution. “Behavioural changes, especially in travel and food consumption, are key,” the report noted. Awareness campaigns and feedback loops are being planned.

The agency acknowledged data limitations, especially in scope 3 emissions such as those from IT equipment or digital services.

ESMA plans to enhance data quality, integrate supplier-specific data and extend emissions coverage in future updates.

“This plan reflects our best efforts and understanding at this stage,” Cazenave said. “Like others, it will improve over time.”

Broader Implications

ESMA’s transition plan, though focused on internal operations, sets a precedent for EU public bodies to “walk the talk” on climate action. The regulator underscored the importance of aligning its own environmental footprint with the sustainability goals it promotes in the financial sector.

“Transparency and consistency are critical to building market trust,” ESMA concluded.