What are the regulatory benefits of carbon footprinting?

Modified on Wed, 16 Oct at 11:29 AM

Carbon footprinting helps organisations comply with environmental regulations and reporting requirements. Many regions have stringent regulations that mandate carbon emissions reporting and reduction. For example:


EU Regulations: The Corporate Sustainability Reporting Directive (CSDR) requires large enterprises and listed SMEs to report their emissions starting in 2024. The Sustainable Finance Disclosure Regulation (SFDR) also aims to increase transparency in sustainability matters among financial actors.


Australia: The National Greenhouse and Energy Reporting (NGER) scheme requires organisations to report their GHG emissions and energy use.


UK: The Streamlined Energy and Carbon Reporting (SECR) policy mandates annual reporting of energy use and GHG emissions for large and quoted companies.


Global Standards: The International Sustainability Standards Board (ISSB), part of the IFRS Foundation, is developing global standards for sustainability-related financial disclosures, including GHG emissions.


Understanding and adhering to these regulations not only ensures compliance but also helps avoid potential penalties and supports the organisation’s sustainability goals.


For a comprehensive list of global environmental regulations and reporting requirements, read our Regulatory Compliance article. 


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