Regulations

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. 

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.

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.

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.