Focus & Intent: Solving the Carbon Emissions Management Issue in Net Zero

This lack is becoming more evident as companies move from making emissions reductions pledges to implementing strategies for carbon footprint reduction, and as regulators step up efforts to ensure accountability around environmental claims. In the United States, the Securities and Exchange Commission (SEC) has proposed new climate disclosure regulations that build on voluntary codes already being adopted by many listed entities.

The new rules aim to enhance and standardize climate related disclosures for investors and their implementation is expected to begin in 2023.2 In the European Union, meanwhile, a Corporate Sustainability Reporting Directive entered force in 2023 and will be applied from 2024 across an estimated 50,000 companies, affecting reports issued in 2025.3

Such moves will make it increasingly a requirement for companies to have an audit of the sustainability information they report. Providing this information is challenging for two reasons, however. The first is that certain types of emissions data are inherently difficult to collect.