ESG Compliance Becomes Crucial as Carbon Standards Tighten

Experts emphasize that the enforcement of environmental mandates like the EU carbon tax is pushing ESG practices from voluntary efforts to essential compliance requirements for businesses, highlighting the importance of reliable data systems.

Industry experts highlight the shift in environmental, social, and governance (ESG) practices into critical compliance areas due to frameworks like the EU carbon tax and India's upcoming Carbon Credit Trading Scheme. This transition underscores the necessity for industries to prioritize these measures as compliance standards tighten globally.

Anup Garg from the World of Circular Economy emphasized that readiness for implementation and data trustworthiness are central to advancing ESG. He noted the need for businesses to adapt as these frameworks evolve, moving ESG efforts from voluntary actions to compliance essentials. Companies unprepared to provide credible carbon data could face competitive setbacks in the global market.

Nidhi Mehra of MyPlan8 advises organizations to focus on carbon measurement, integrate multi-framework reporting, and enhance supply chain transparency. She suggests that early adoption of sustainability practices could enhance access to green financing and offer businesses a competitive edge in international trade.