International Sustainability Reporting Directives, Regulations and Standards

This information is correct as of Tuesday 18th June 2024 

Sustainability is experiencing prioritisation worldwide. As we edge ever closer to the global 2050 net zero target year, large-scale event venues face growing pressure to adopt eco-friendly practices and adhere to regulatory reporting requirements as part of day-to-day business practices.  

Global legislation has yet to be standardised. There are numerous regional directives, regulations and standards. Because of this, it is critical to understand the legislation that applies to you and/or your customers to ensure compliance.  

It is important to note that while your business may not meet the criteria, your customers may.  Therefore, being able to provide them with relevant data will provide reassurance whilst keeping you ahead of the curve. 

Understanding Worldwide Sustainability Initiatives 

Understanding this complex landscape and discerning which rules to follow can feel overwhelming. That’s where we come in. This comprehensive guide for both worldwide and regional sustainability reporting directives, regulations and standards will help to get you started.   

Global Sustainability Reporting 

The International Sustainability Standards Board (ISSB) is an independent, private-sector body that develops and approves International Financial Reporting Standards (IFRS). It governs sustainability disclosure standards and is focused on the needs of investors and the financial markets.  

The ISSB was formed in 2021 at The UN Climate Change Conference in Glasgow (COP26), with the role of creating a global baseline for sustainability reporting. It builds on the work achieved by other reporting initiatives, including the Climate Disclosure Standards Board (CDSB) and the Task Force for Climate-Related Financial Disclosures (TCFD); the latter has now been disbanded.  

ISSB standards do not require companies to obtain assurance for their reporting.  

Many of the other national and international reporting directives look to align their standards with the ISSB, since it is a well-established directive with reputable, rigorous methodology.  

Sustainability Reporting in the European Union (EU) 

Sustainability standards in the EU are governed by the Corporate Sustainability Reporting Directive (CSRD), which was formed on 5 January 2023. This replaces the EU's legacy Environmental, Social and Governance (ESG) reporting programme, the Non-Financial Reporting Directive (NFRD).  

A broader set of large companies, as well as listed small and medium enterprises (SMEs), are now required to report on sustainability. The CSRD is considered one of the most complicated global reporting directives due to its comprehensive scope, stringent requirements and detailed reporting obligations.  

Some non-EU companies will also have to report if they generate over €150 million on the EU market. Companies that are subject to mandated reporting as of this year are:  

• Large, listed companies, banks and insurance companies already subject to the former NFRD  

• Other listed EU companies  

• Listed European SMEs  

• Large private European companies  

• Non-European companies with significant business/subsidiaries in the EU 

The CSRD’s sustainability rules will start applying between now and 2028. 

Sustainability Reporting in the United Kingdom (UK)  

The United Kingdom has several entities that govern its country-wide sustainability efforts:  

1. Streamlined Energy and Carbon Reporting (SECR)  

As of 1 April 2019, large UK companies are required to report publicly on their UK energy use and carbon emissions. This requirement has been implemented by the Department for Business, Energy and Industrial Strategy (BEIS) and impacts any companies, limited liability partnerships (LLPs) and groups that exceed at least two of the following three thresholds in the financial year:  

• £36 million annual turnover  

• £18 million balance sheet total  

• 250 employees  

For businesses meeting the above criteria, annual company or group reporting is required regardless of whether an overseas parent company or group has published a similar report.   

2. Energy Savings Opportunity Scheme (ESOS) 

ESOS is a mandatory energy assessment scheme for organisations in the UK that meet the qualification criteria. The Environment Agency is the UK scheme administrator for ESOS; assessments are conducted every four years to audit energy used by businesses’ buildings, transport and industrial processes. Its standards apply to those companies or groups that either have: 

• £44m annual turnover 

• £38m balance sheet total 

• 250 employees  

3. Corporate Sustainability Due Diligence Directive (CSDDD) 

On 30 April 2024, the CSDDD (companion law to the CSRD) was passed by the European Union Commission, which will require very large global companies to identify, prevent, mitigate and account for environmental impacts and human rights abuses from their supply chains and sourcing operations. While the law is EU driven, it applies globally for companies with over 500 employees and a net worldwide turnover of £150 million.  

The CSDDD applies to a company's direct operations, subsidiaries and their value chains (direct and indirect established business relationships). Small and medium enterprises (SMEs) are not directly impacted, however many of these businesses are suppliers within larger corporate supply chains of companies who do meet the CSDDD's supply chain due diligence reporting criteria.  

Sustainability Reporting in the United States 

The United States has two main sustainability programs that require compliance, both specific to the state of California:  

1. California Cap-and-Trade Programme (CCATP) 

California’s cap-and-trade program was introduced by the California Air Resources Board (CARB) in 2012. Cap-and-trade is a market-based emissions trading system that establishes a declining cap on emissions over time and distributes tradeable credits under the cap.  

The programme covers greenhouse gas (GHG) sources responsible for approximately 85% of the state’s emissions. This totals around 450 entities across the electricity generation, large industrial companies and fuel supply industries.   

Entities that emit 25,000 or more metric tons of carbon dioxide equivalent (mtCO2e) per year must report verified GHG emissions data to CARB annually via the Mandatory Reporting Regulation (MRR).  

2. Climate Corporate Data Accountability Act (Senate Bill 253) and Climate-Related Financial Risk Act (Senate Bill 261)  

In October 2023, California passed two new laws regarding business carbon emissions disclosure and climate-related financial risks, collectively called the Climate Accountability Package:  

• The Climate Corporate Data Accountability Act (Senate Bill 253) requires large businesses with over $1 billion annual revenue operating in California to publicly report their greenhouse gas emissions.  

• The Climate-Related Financial Risk Act (Senate Bill 261) mandates that companies with over $500 million annual revenue disclose the threats they face because of climate change and associated mitigations. 

Sustainability Reporting in Asia  

As of April 2023, companies listed on the Hong Kong Exchange (HKEX) are mandated to report on carbon emissions. HKEX have outlined four areas of proposed disclosures under the new proposed rules: governance, strategy, risk management and metrics and targets. 

Sustainability Reporting in Australia and New Zealand  

Australia and New Zealand abide by a two core governing bodies for their sustainability efforts:  

 1. National Greenhouse and Energy Reporting Scheme (NGER)   

The NGER Scheme was established under the Australian National Greenhouse and Energy Reporting Act 2007. The single national framework mandates companies to report on climate-related disclosures in line with ISSB.  

Companies that must comply are as follows:  

• Any corporation that reaches the facility or corporate group threshold 

• Largest listed companies  

• Unlisted companies  

• Financial institution  

2.   Aotearoa New Zealand Climate Standards 

Around 200 entities in New Zealand are required to produce climate-related disclosures. These climate reporting entities include:  

• All registered banks, credit unions and building societies with total assets of more than $1 billion NZD. 

• All managers of registered investment schemes (other than restricted schemes) with greater than $1 billion NZD in total assets under management.  

• All licensed insurers with greater than $1 billion NZD in total assets or annual premium income greater than $250 million NZD.  

• Listed issuers of quoted equity securities with a combined market price exceeding $60 million NZD.  

• Listed issuers of quoted debt securities with a combined face value of quoted debt exceeding $60 million NZD. 

Reporting is required against climate standards issued by the External Reporting Board (XRB). These climate standards have been developed with consideration of international best practice for climate-related financial reporting, such as the ISSB.  

Conclusion: How WeTrack, A Momentus Company, Empowers Sustainability Efforts  

Sustainability is no longer optional for event venues — it’s a necessity. With the myriad of international and regional sustainability reporting directives, it’s critical for venues to adopt robust tools to ensure compliance and enhance their environmental impact. WeTrack, a Momentus company, offers comprehensive sustainability tracking software designed to help venues achieve and surpass their sustainability goals. 

Track Sustainability Efforts at Your Venue and Events 

We provide a seamless way to set, track and measure the social and environmental impact of your venues and events. Say goodbye to cumbersome spreadsheets and welcome custom dashboards that keep all your sustainability information in one place, enhancing the efficiency of your sustainability reporting. 

Enable Your Organization’s Sustainability Strategy 

Whether you’re managing live entertainment, sports, trade shows, or campus events, our tools help you address high energy usage, plastic waste and carbon emissions. Momentus Sustainability empowers you to track KPIs for environmental and social impact, including diversity, equity and inclusion (DEI). This comprehensive approach ensures that your sustainability reports are accurate and impactful. 

Set Targets, Track Progress and Report Results 

Set targets, track progress and report results effectively. Our technology enables visibility, celebrates milestones and improves your reputation by proving your sustainability efforts to consumers, sponsors and regulators. This is crucial, especially with the stringent requirements of current corporate sustainability reporting directives. 

Make a Positive Impact 

Confidently make a positive impact on the world by inspiring and enabling your team to improve sustainability. We’ll not only boosts your adherence to regulations but also enhances your appeal as an employer and partner. By aggregating the increasing amount of data and targets in one platform, we make it easier to generate comprehensive sustainability reports. 

Contact us today to discover how WeTrack can support and prepare you for current and forthcoming sustainability reporting compliance, ensuring your venue’s success in the journey toward a greener future.