Neo Impact

The European Commission’s recent Omnibus Proposal , introduced in October 2023, aims to cut through the noise and bring much-needed clarity to the EU’s sustainability reporting landscape. By aligning rules across multiple legislations, the proposal marks a significant step toward a streamlined, more coherent ESG reporting environment for businesses operating in or trading with the EU. Why the Proposal Was Needed Over the past few years, EU businesses have faced a growing web of overlapping ESG-related regulations — from the Corporate Sustainability Reporting Directive (CSRD) to the Sustainable Finance Disclosure Regulation (SFDR) and the EU Taxonomy. While each of these frameworks serves a specific purpose, inconsistencies in definitions, reporting timelines, and data expectations have made compliance burdensome, particularly for small and mid-sized firms. The Omnibus Proposal is a response to these challenges. Rather than introducing entirely new rules, it seeks to: Clarify existing o...

The EU’s Carbon Border Adjustment Mechanism (CBAM) is no longer just a distant regulatory concern — it is a pressing compliance issue for companies operating globally, especially those exporting to Europe. As the transition phase continues, CBAM is set to reshape how carbon-intensive goods are measured, reported, and taxed at the EU border. Why CBAM Matters At its core, CBAM is a climate policy tool designed to prevent “carbon leakage” — the scenario where companies shift production to countries with less stringent environmental regulations. By pricing carbon at the EU border, the mechanism levels the playing field for European producers while encouraging global partners to decarbonize their value chains. The initial sectors under CBAM include: Cement Iron and steel Aluminium Fertilizers Hydrogen Electricity These industries were selected based on their high carbon intensity and risk of carbon leakage. The Current Landscape: Transition Phase Since October 2023, companies have been requ...

As the climate conversation grows louder, businesses are facing new expectations—not just around their own operations, but across their entire value chain. That’s where Scope 3 emissions come in. While most organizations have a grip on their direct (Scope 1) and energy-related (Scope 2) emissions, it's the indirect emissions from suppliers, distributors, and even customers that often account for the largest share of their carbon footprint—and the toughest to tackle. Why Scope 3 Matters More Than Ever Scope 3 emissions can make up more than 75% of a company's total greenhouse gas (GHG) emissions. That means ignoring them leaves most of the impact unaddressed. Regulations are catching up. From the EU’s CSRD to new disclosure mandates in California , companies are being nudged—or required—to report Scope 3 data. Investors, too, are asking tougher questions, pushing for deeper transparency on environmental risks and supply chain resilience. What Makes Scope 3 So Difficult? Despi...

As sustainability reporting becomes more integral to corporate strategy, India’s Business Responsibility and Sustainability Report (BRSR) framework is evolving to reflect that shift. The 2025 amendments to BRSR are designed to make reporting more practical, focused, and aligned with global best practices—without overwhelming companies with excessive requirements. If you're navigating ESG disclosures or planning to start, these changes are worth understanding. A Simpler Approach to Value Chain Reporting Previously, companies had to track and report ESG metrics across partners accounting for 75% of their procurement or sales. This was complex and burdensome, especially for organizations working with a large number of small vendors. Under the revised guidelines, companies now need to report only on value chain partners that contribute 2% or more to total purchases or sales. This not only reduces the compliance load but also directs focus toward the most impactful relationships. Whil...