The European Parliament has recently signed off on amendments to the EU Climate Law by 413 votes to 226 and 12 abstentions, to include a new, intermediate and binding 2040 EU climate target of reducing net greenhouse gas (GHG) emissions by 90% compared to 1990 levels.
That’s a big step by the EU towards their goal of climate neutrality by 2050 and it makes the direction very clear for companies executing towards it.
The updated EU Climate Law also allows for limited flexibility, including the potential use of high-quality international carbon credits starting in 2036, and requires regular reviews to make sure progress stays aligned with science and technological advances.
How can this impact you?
While this reduction is part of the EU Climate Law and for the EU as a whole, it will drive and tighten regulations and laws for companies in the member countries.
The companies most immediately affected from a disclosure standpoint are those falling under CSRD. This is more than just policy language – it’s a clear directive for those disclosing from a CSRD perspective that there will be increased expectations around emissions transparency, reduction planning, and defensible reporting.
Accurately measuring Scope 1, 2, and 3 emissions
Accurately measuring and reporting Scope 1, 2, and 3 emissions will be critical because not only will it give you a complete picture of the true climate impact, but it will indicate where across complex supply chains the emissions often sit. Also, reworking or restating emissions is not only tedious and painful it can also lead to failed audits, regulatory exposure, and customer or investor distrust.
Show measurable progress against long-term decarbonization goals
Showing measurable progress against long-term decarbonization goals will now go from being a “nice to have” to a “must-have”. There will have to be evidence about year-over-year reductions, clear baselines and defensible methodologies. The use of carbon credits will also be limited to high-quality international carbon credits with strict conditions.
Reporting on material topics and aligned with ESRS
Even with recent Omnibus simplification efforts, CSRD reporting aligned to ESRS data points remains complex because the disclosures are in a structured, highly prescriptive tabular format. The CSRD disclosure requires detailed quantitative and narrative data, audit readiness, traceability, and clear links between risks, impacts, metrics, and transition plans.
Producing audit-ready disclosures mapping with limited assurance
Producing audit-ready disclosures under limited assurance requires documented methodologies, strong internal controls, clear data lineage, and evidence to support every material metric and narrative claim.
It’s tricky doing that with simple spreadsheets and emails or simple CSRD reporting tools because the underlying sustainability data often comes from multiple stakeholders and systems, with automated, file-based or manual inputs making consistency, traceability, and audit-readiness much harder.
How can Pulsora help?
Many sustainability teams are still juggling spreadsheets, chasing down data across departments, and manually piecing together reports. That approach won’t hold up under this tighter scrutiny.
The Pulsora platform supports businesses in streamlining their carbon accounting and management, sustainability disclosures, ensuring compliance with consolidated frameworks such as CSRD, CDP, and GRI while reducing administrative burdens.
AI-first sustainability and carbon platform
PulsoraAI streamlines or in many cases eliminates manual data collection across the value chain and translates fragmented inputs into decision-ready, audit-ready insights. PulsoraAI flags risks, fills data gaps, and gives continuous visibility even when company data is incomplete and being collected.
Centralized ESG data management
Pulsora enables companies to efficiently set up and manage reporting obligations, ensuring a structured and transparent approach to sustainability reporting. By consolidating disclosures from different frameworks into a single platform, businesses can reduce duplication, improve data consistency, and enhance overall reporting efficiency.
Dynamic framework mapping & reporting automation
With automated metric mapping, Pulsora links overlapping ESG metrics across CSRD, GRI, SASB, CDP, and the EU Taxonomy, ensuring that data collection happens once and can be used to report across multiple frameworks. This capability eliminates the need for redundant reporting efforts, aligning with the Omnibus Regulation’s goal of reducing compliance costs and administrative complexity.
Compliance readiness & ESG data insights
Through real-time analytics and tracking, companies can assess their readiness for upcoming regulatory changes. Our platform’s gap analysis and materiality assessment tools help companies understand which disclosures are mandatory, subject to materiality, or voluntary under evolving EU regulations. Additionally, historical reporting views allow companies to compare disclosures over time, ensuring transparency and progress tracking.
Digital-first approach & seamless integrations
Pulsora leverages API integrations to facilitate direct submissions to frameworks like CDP and EDCI, reducing manual data entry and enhancing efficiency. Additionally, bulk data upload/download features and input mapping ensure that companies can quickly adapt to new requirements without disrupting existing workflows.
The EU’s 2040 target raises the bar. The organizations that treat sustainability data as core business infrastructure not just a reporting exercise will be in a much stronger position to adapt and compete in a low-carbon economy.
Pulsora is built to help you make that shift possible. Book a demo to see how.
