What are the most prominent business sustainability laws and directives?

Environmental protection has become a priority, driving the creation of regulations aimed at facilitating the transition to a more sustainable future and providing a framework for monitoring, controlling, and reducing the carbon footprint in a more transparent, effective, and reliable way.

However, the complexity of this new legal landscape can be overwhelming. Below, we delve into the most relevant sustainability regulations every company should know.

Climate Change and Energy Transition Law

This law, enacted to achieve net-zero greenhouse gas (GHG) emissions by 2050, provides tools to minimize negative social, economic, and environmental impacts. Centered on key points such as reindustrialization, attracting investments, job creation, and transitioning to a modern economy, this law serves as a cornerstone for corporate sustainability.

The Climate Change and Energy Transition Law establishes an essential framework for institutions and offers security to all stakeholders. Its broad scope makes it a fundamental tool for driving the transition to a more sustainable and environmentally friendly economic model.

Corporate Sustainability Reporting Directive (CSRD)

The CSRD establishes a framework for the orderly and effective presentation of a company’s sustainability information. This directive introduces the European Sustainability Reporting Standards (ESRS), a set of twelve standards that provide a clear and concise structure for reporting, facilitating understanding and analysis. These standards cover three main areas: environmental, social, and governance.

The CSRD is expected to be updated soon to include mandatory application to SMEs. Preparing a sustainability report in line with this directive and its standards represents a significant step toward more sustainable and transparent business management.

Whistleblower Protection and Anti-Corruption Law

This law aims to protect individuals who report any type of corruption or regulatory non-compliance within companies and applies to all businesses with more than fifty employees.

Among its measures is the obligation for companies to establish secure whistleblowing channels for employees and to document and register internal investigations conducted in response to such reports.

Corporate Sustainability Due Diligence Directive (CSDDD)

The CSDDD introduces a new approach to business management by focusing on environmental and human rights issues. It provides companies with tools to identify and eliminate internal practices that may pose a risk to the environment or human rights.

Affected companies must integrate these strategies into their daily operations, implement actions to address identified risks, and transparently report their progress in an accessible manner.

Green Claims Directive (GCD)

The GCD aims to bring transparency to environmental claims made by companies by providing a framework for businesses to make robust and verifiable environmental statements, avoiding "greenwashing."

The GCD works in conjunction with the Empowering Consumers for the Green Transition Directive (ECD), ensuring consumers receive accurate and reliable environmental information about the products they purchase.

How Manglai can help you comply with sustainability laws and directives

Manglai is a leading solution for carbon footprint measurement, specializing in the GHG Protocol and ISO 14064. Our features enable you to:

1. Measure

• Calculate real-time emissions for scopes 1, 2, and 3.
• Classify and manage data intelligently using AI.
• Analyze data and receive personalized recommendations.
• Visualize impacts through interactive dashboards.
• Integrate data from ERPs, fleet management platforms, and more.

2. Act

• Define customized decarbonization scenarios.
• Obtain AI-driven reduction plans tailored to your industry.
• Manage decarbonization projects and tasks.
• Access a network of decarbonization partners with discounts.
• Participate in certified offset projects.

3. Report

• Get answers to your sustainability questions with our AI.
• Generate third-party auditable GHG reports.
• Easily export data and charts.
• Create a personalized web page to communicate your environmental strategy.
• Educate employees and stakeholders with specific reports.

4. Certify

• Obtain auditable data under the GHG Protocol standard.
• Receive support from climate experts for certification.
• Analyze applicable regulations for your company.
• Manage MITECO certification automatically.
• Access state grants and tenders.

With Manglai, sustainability management becomes simpler, more transparent, and more effective. We help you comply with new regulations and build a more sustainable future for your company.