Sustainability regulations: A gateway to new digital opportunities

Over the next few years, many companies are expected to comply with a number of domestic and international sustainability regulations. These mandates will likely transform the way business is done. Different regulatory bodies with different goals developed these regulatory mandates, and most countries are making their own decisions about how to implement them, resulting in nuances such as differing enforcement timelines and variations in the companies within the 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 regulatory compliance timeline 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 may open new avenues of profit and value generation for their companies.

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