Issue link: https://resources.tangoanalytics.com/i/1535915
Sustainability Reporting Regulation in 2025 5 Copyright © 2025 Tango. All rights reserved. The Standards Your Business Should Meet: Preparing for Mandatory Disclosure & Regulations emissions data. Assurance can help reduce risk, increase investor confidence, and satisfy compliance requirements under laws like SB 253 and the CSRD. Full Value Chain Visibility: Reporting boundaries are expanding. Companies are increasingly expected to quantify Scope 3 emissions and address sustainability performance across their supply chains— not just within their direct operations. Financial Risk Integration: Sustainability is being reframed as a financial issue. Organizations are quantifying the potential financial impacts of climate risks and opportunities and integrating them into enterprise risk management systems. Granular Benchmarking and Forecasting: Disclosures are shifting from static snapshots to dynamic performance tracking. Stakeholders now expect high- resolution data that enables scenario analysis, benchmarking, and long-term planning. AI-Driven Insights: Artificial intelligence is being used to process complex emissions data, assess regulatory readiness, and support predictive modeling. While still an emerging trend, it is helping companies stay ahead in a rapidly changing environment. Not all companies are created equal regarding their ESG maturity levels and ability to transform and reduce carbon emissions. However, 2025 will necessitate that companies meet certain minimum standards regarding their reporting endeavors as regulations such as the EU CSRD and California's Climate Rules start to take effect: Automated, Real-Time Data Collection: Manual data entry and fragmented spreadsheets are no longer viable. Companies are moving toward automated systems that capture and process sustainability data continuously, improving speed, accuracy, and audit readiness. Standardized, Comparable Metrics: To meet global frameworks and assure stakeholders, data must be structured and reported in consistent, comparable formats. Alignment with standards like the ESRS, TCFD, and GHG Protocol is fast becoming non- negotiable. Third-Party Assurance: Independent verification is emerging as a credibility marker, particularly for