Interest among companies in sustainability reporting is increasing year by year, as it contributes to the optimisation of reporting processes, improved financial performance, and enhanced corporate reputation and competitiveness. It is important for all organisations and companies to be aware that as of 1 January 2025, the new sustainability reporting directive will apply to large companies with more than 500 employees for the 2024 financial year, to other large companies for the 2025 financial year, and to most other companies of public interest for the 2027 financial year*. The objectives of the new directive are to ensure reliable and comparable information on companies’ sustainability practices and to introduce mandatory sustainability reporting standards. At the same time, the goal of any sustainability reporting is for companies to have a positive impact on the environment and society.
One of the more well-known indicators under the ESRS standards is the calculation of a company’s carbon footprint. The carbon footprint can be calculated based on standard conversion factors that determine how much CO₂ and other greenhouse gases are produced during the combustion of fuels or other forms of energy production, such as electricity. In very simplified terms, the carbon footprint represents the amount of carbon dioxide generated in the production of a specific product, the delivery of a service, a process, or an organisation. In this way, we determine to what extent a selected process contributes to the greenhouse effect. The European Union has therefore introduced a new initiative called “Fit for 55”, setting the goal of reducing net greenhouse gas emissions by at least 55% by 2030. For all sustainability report preparers, an agile integrated model for processing sustainability data is most appropriate, as it enables efficient understanding and integration of data to improve efficiency and reduce costs. Its goal is to place data utilisation at the forefront for optimising business processes, improving efficiency, and remaining competitive in the market.
A company or organisation can, through the implementation of sustainability reporting and carbon footprint calculation via integrated data analysis, contribute to strengthening its brand and corporate reputation, improving competitiveness, optimising operations, reducing operating costs, enabling more precise carbon footprint calculations, increasing societal satisfaction, and generating a more positive environmental impact.
*Article 5 and Recital (27) of Directive (EU) 2022/2464 of the European Parliament and of the Council. Available at: https://eur-lex.europa.eu/legal-content/SL/TXT/?uri=CELEX%3A32022L2464
Keywords: Sustainability reporting, regulation, carbon footprint
Prepared for the Foundry Bulletin of the Slovenian Foundrymen’s Society