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Sustainability regulations: A gateway to new digital opportunities

Emergence of region and country-specific regulations and compliance could pose organisation-wide challenges for businesses due to their varied scope and timelines. This report contains research on how data and digital transformation can help organisations not only effectively comply with these regulations, but also activate new avenues of profit and increase business value for stakeholders.

Over the next few years, companies are expected to comply with a spate of domestic and international sustainability regulations that stem from the Paris Agreement of 2015. These mandates will likely transform the way business is done. Different regulatory bodies with different goals and political priorities developed these regulatory mandates and most countries are making their own decisions about how to implement them, resulting in nuances including differing enforcement timelines and varying companies in scope of the regulations.

For most large companies, digital processes and systems will likely need to succeed manually-driven approaches for sustainability reporting. At the same time, many enterprise software companies and hyperscalers are releasing new offerings to help address this need, adding to the mass of niche and bespoke offerings in the marketplace. This can be confusing and may add to the pressure leaders across the C-suite are facing with the time-box of regulatory compliance looming. However, if executives look at the opportunities presented by the digitisation that these regulations require, they may discover that as opposed to a compliance burden, this regulatory wave opens new avenues of profit and value generation for their companies.

In this report, Deloitte explores the digital transformation needs arising from major ESG regulations and offers a pathway to scale digital actions such that it may result in improving profitability and value along with regulatory compliance.

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