Accurate operational data is the key to reducing EU Green Deal business risk
Implementing the EU Green Deal has created an enormous monitoring and reporting challenge for European companies at the operational level and throughout their supply chains.
Companies that fail to react quickly and decisively to the changing regulations face stricter penalties in the form of litigation, greenwashing fines, carbon taxation and the potential loss of access to markets and capital.
Unlocking critical compliance data
This article looks at how the Carbon Stream Map unlocks the critical data and metrics for companies to meet compliance and reduce their business risk while fulfilling their fiduciary and compliance duties.
EU Green Deal non compliance risk and penalties
Are your operations and supply chain partners ready?
Tightening mandatory net zero and green deal carbon reporting is now a critical compliance risk for all organisations.
The collection of accurate data is the key for companies challenged with implementing the carbon accounting requirements and is central to the European Green Deal CSRD, supply chain and EFRAG.
Increasing compliance and capital risks
The prospect of regulatory fines, carbon taxation and being barred from the EU market are driving action and compliance.
As of January 2024, EU greenwashing legislation bans claims that a product has a “climate-neutral,” “reduced,” or “climate-positive” impact on the environment because of CO2 emissions offsetting schemes.
To make such claims, companies must have a ‘recognised excellent environmental performance’ by either having an ISO 14024 Type I certification or meeting the EU Ecolabel standards.”
A broad range of business challenges
The EU Green Deal is multifaceted, with various regulations creating business risks.
legally binding carbon reduction targets per industrial sector
mandatory Carbon Reporting
Supply chain Carbon measurement
carbon border taxation
5 % non-compliance fines on global profits
£56bn EU ETS Carbon Taxation target to fund the low carbon transition
£1.2 trillion is the estimated cost to European businesses in implementing carbon compliance across their operations.
European Businesses are not ready
With the tight compliance timeline, companies and their supply chain partners are finding the transition and change challenging.
75% have no carbon reduction strategy
64% have no money to meet the changes in compliance and regulation
54% of companies do not have the in-house knowledge to respond to the change
85% find consultants too expensive.
How to prepare your organisation
The Carbon Stream Map is an agile, scalable solution that measures scope 1,2 and 3 carbon emissions.
By analysing and visualising the entire process from raw materials to finished goods, organisations can identify their carbon footprint, carbon liabilities and areas for improvement.
This enables companies to report on mandatory carbon and climate reporting standards and reduces the risk of greenwashing.
Reporting carbon emissions accurately builds investor trust and can unlock access to green bonds and ESG investment.
More about Martello and the Carbon Stream Map
Martello supports businesses and investors in reducing costs and liabilities in response to global carbon, climate, and net zero legislation.
The Martello Carbon Stream Map (CSM) unlocks the blueprint for boards and investors to decarbonise an organisation, supply chain, or portfolio by quickly calculating end-to-end operational and supply chain costs and liabilities.
The CSM is a highly visual tool that identifies the systematic options to affect emissions within one operation or down through its global supply chain.
We enable businesses and investors in the following ways:
Understand the legislation and business risks affecting your company now and over the next five years.
Measure your operational and supply chain carbon liabilities.
Assess your company’s carbon and climate exposure and the related capital costs.
Provide the metrics baseline to unlock access to sustainable low-carbon finance and Green Bonds and engage with ESG Investors and Funds.
Unlock the metrics needed to meet the mandatory and voluntary reporting standards from TCFD, TNFD, ESG Reporting and Net Zero Goals.
Create an Action Plan to reduce your liability and set up the baseline for business improvement science-based targets.
If you believe we can help with your compliance needs for the Corporate Sustainability Reporting Directive (CSRD), the EU Green Deal, Net Zero compliance, or other areas of ESG, please schedule a time for a consultation.
We can measure and map any business in any sector or geographical region. The data allows business leaders to execute their plans at any point in their net zero transformation journey, supporting any level of operational maturity.
Our other services include Business Improvement, Strategy, Financial and Capital Markets Advisory, Regulatory and Communications.
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