2025 & Mandatory Sustainability Reporting – EcoTech Insights
The new year means new rules for corporate sustainability reporting are now in effect. Sustainability analyst Bonnie Schneider examines the impact on US-based big tech.
Transcript
Hi everyone. I'm Bonnie Schneider with your Ecotech Analyst Insights. It's January, 2025, and the European Union's Corporate Sustainability reporting Directive, CRSD is now in effect, and it's not just for those overseas.
The rule also applies to international firms with major European operations. Given this broad scope, many industries will be impacted, including the tech sector under scrutiny data centers, as they now consume an estimated three to 4% of global electricity tech companies like Microsoft, Google and Amazon must comply with these rules while managing their growing AI operations. This means carefully tracking power usage, water consumption, and heat management.
Plus tech companies based in America face the additional pressure of complying with evolving US rules. Here in the states, the adoption of new SEC requirements for sustainability move forward last year, but they are currently on hold. Pending legal review.
These rules would demand publicly traded companies to report their greenhouse gas emissions and climate related risks impacting their finances. The momentum for sustainability reporting is growing for many large organizations. 2025 marks a new era of mandatory compliance.
