Emerging regulatory frameworks such as the European Union’s carbon tax regime and India’s proposed Carbon Credit Trading Scheme (CCTS) are transforming environmental, social and governance (ESG) practices from a voluntary reporting exercise into a key compliance and business priority for companies, industry experts said.They cautioned that companies lacking credible carbon data systems and traceable reporting mechanisms could face rising compliance risks and lose competitiveness in global markets.“The next phase of ESG will be driven by implementation readiness and data credibility,” World of Circular Economy (WOCE) Founder and Director Anup Garg said, PTI quoted.He said frameworks such as the European Union’s Carbon Border Adjustment Mechanism (CBAM), India’s Business Responsibility and Sustainability Reporting (BRSR) norms and the evolving Carbon Credit Trading Scheme (CCTS) are rapidly shifting ESG from a voluntary disclosure exercise to a business and compliance priority.According to Garg, while sustainability commitments are increasing across industries, implementation remains uneven, with many organisations continuing to face challenges in structured emissions tracking, particularly across supply chains and vendor ecosystems.Citing an analysis, he said 72 per cent of Indian companies remain at an early stage of carbon readiness despite growing climate regulations and ESG compliance requirements.WOCE is a Delhi-based sustainability and climate solutions platform that operates globally and provides services in ESG advisory, carbon accounting, emissions management and circular economy strategies.Nidhi Mehra, Co-Founder of MyPlan8, said organisations need to prioritise carbon measurement, multi-framework reporting and supply chain transparency over the next two to three years and integrate them into core business operations and value chains.“The early movers in sustainability will benefit from greater access to green finance and a sustainable competitive advantage in exporting,” she said, as quoted PTI.The comments come as businesses face increasing pressure to align operations with emerging climate regulations and sustainability disclosure standards across domestic and international markets.
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