Here, you’ll learn about the growing regulatory pressures on businesses of all sizes to address their climate footprints. While this might seem a little daunting, it's important to learn about these changes so your organization can get ahead of the problem and win on climate.
While regulations are rapidly changing, they’re all trending toward alignment with the Paris Climate Goals, which require 50% emissions reductions by 2030 and 90% by 2050. By aligning your company goals with the Paris goals, you can stay ahead of regulations. All regulations listed below are as of January 2024.
Any company that does business with either of the above
You may be required to report your emissions to the company you do business with to allow them to properly report to the government.
See the California regulations tab for other industries
Even businesses not located in California may be required to follow these, such as online businesses marketing products or services to customers in California, or if your company does business with another that’s located in California or sells to customers in the state.
The regulations require reporting of Scopes 1 and 2 for all companies in the categories above, as well as Scope 3 for certain businesses. Aclymate makes it easy to report on all three Scopes, and provides custom reporting so you’ll have everything you need to submit.
Europe & United Kingdom
Similar to California, your business will need to pay attention to these regulations whether it’s located in these countries, does business with these countries, or does business with a company that’s located in the EU or UK, or sells to customers there.
Companies that meet the above criteria and make 40 million euros per year, have 20 million euros on their balance sheet, have more than 250 employees or do business with a company like this, will be required to report several things by the end of the year. Required for reporting are a full-scope emissions report and forecast, detailed energy consumption numbers, carbon intensity scores, physical risks, exposure to the use of fossil fuels, and absolute carbon emission reduction targets for 2030 and 2050.
Companies that provide investment products must (at minimum) share a set of sustainability and ESG risks, including that around climate impact.
This year, the UK will require investment firms of all sizes and companies with public shares listed in the UK to provide clear labeling, customer-facing disclosures, and controls to prevent greenwashing.
Companies with greater than 250 employees, over 36 million GBP in revenue, or 18 million GBP on the balance sheet will likely be required to disclose their total energy consumption and their Scope 1 and 2 emissions. They will also need to include an intensity ratio like emissions per pound of revenue and share plans about energy efficiency. In addition, public companies will be required to disclose global operations.
While there is an emerging and broad regulatory system emerging on climate, changing demographics and investment management decisions are changing the landscape. Businesses are feeling a top-down pressure from institutional finance and a bottom-up pressure from a concerned public to act. This will video will explain the numbers and vectors of these pressures.
Decarbonization of investments
Due to pressures from international finance, larger companies such as Microsoft, Delta Airlines, General Motors and more, have begun to require suppliers to report on and meet reduction goals for their emissions.
Demand from potential & existing employees
75% of Millennials and Gen Z specifically seek out companies that take action on climate. In order to attract and retain this valuable talent, companies need to show they have begun to measure, reduce and offset emissions.
Demand from potential customers
57% of buyers consider a company’s sustainability initiatives in their purchasing decisions. Taking action and ensuring to publicly report on these initiatives is crucial to be able to capture these buyers, who also tend to have more buying power than others.
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