This IDC Market Perspective explores the evolving landscape of sustainability regulations, highlighting the pivotal role of policies and laws in driving sustainable operations within organizations. It differentiates between mandatory and voluntary measures, emphasizing the significance of both in achieving environmental goals. Through an exploration of global agreements, standards, and the implications for IT vendors and IT buyers, the document provides a comprehensive overview of the regulatory frameworks shaping the future of sustainability in the business realm."Sustainability regulations are not just rules to follow; they are pathways to innovation, efficiency, and long-term prosperity for businesses." Vladimir Kroa, Associate Vice President, IDC.
Please Note: Extended description available upon request.
Executive Snapshot
New Market Developments and Dynamics
Introduction
The Role of Sustainability-Focused Policies and Regulations
The Hierarchy of Policies and Regulations
Important Sustainability Reporting Concepts
Global Agreements and Institutions, Policies, and Treaties:
UNFCCC
Subject and Type of the Framework/Policy
Main Objective and Geographic Scope
What is the Implication for IT Vendors and IT Buyers?
COP and the Paris Agreement
Subject and Type of the Framework/Policy
Main Objective and Geographic Scope
What is the Implication for IT Vendors and IT Buyers?
The Intergovernmental Panel on Climate Change
Subject and Type of the Framework/Policy
Main Objective and Geographic Scope
What is the Implication for IT Vendors and IT Buyers?
United Nations Sustainable Development Goals
Subject and Type of the Framework/Policy
Main Objective and Geo Scope
What is the Implication for IT Vendors and IT Buyers?
Focus on Key Global Sustainability Regulatory Bodies
International Financial Reporting Standards Foundation
Subject and Focus of the Institution
Main Objective and Geographic Scope
International Sustainability Standards Board
Subject and Focus of the Institution
Main Objective and Geographic Scope
Issued Standards:
IFRS S1
IFRS S2
Legal Validity and Implication for IT Vendors and IT Buyers
SASB
Subject and Focus of the Institution
Main Objective and Geographic Scope
What is the Implication for IT Vendors and IT Buyers?
GRI
Subject and Focus of the Institution
Main Objective and Geographic Scope
Issued GRI Standards
Subject, Issuer, and Affiliations
Main Objective and Type of Information
What is the Implication for IT Vendors and IT Buyers?
TCFD
Subject and Type of the Institution
Main Objective and Geographic Scope
Legal Validity and Implication for IT Vendors and IT Buyers
Focus on the Key Sustainability Protocols and Certifications:
GHG Protocol
Subject, Issuer, and Affiliations
Main Objective and Geographic Scope
Legal Validity and Implication for IT Vendors and IT Buyers
Science-Based Targets Initiative
Subject and Type of the Standard/Protocol
Main Objective and Geo Scope
Legal Validity and Implication for IT Vendors and IT Buyers
CDP (formerly Carbon Disclosure Project)
Subject and Type of the Standard/Protocol
Main Objective and Geographic Scope
Legal Validity and Implication for IT Vendors and IT Buyers
Select Sustainability Relevant ISO Standards: Subject and Type of ISO Standard
Legal Validity and Implication for IT Vendors and IT Buyers Regarding ISO Standards
Select Ecolabels and Other Certifications
Regional Specifics of Sustainability Regulations
U.S. and Canada
U.S. Securities and Exchange Commission
Main Objective and Geo Scope
Legal Validity and Implication for IT Vendors and IT Buyers
Inflation Reduction Act
Main Objective and Geographic Scope
Legal Validity and Implication for IT Vendors and IT Buyers
Environmental Protection Agency
Main Objective and Geographic Scope
Legal Validity and Implication for IT Vendors and IT Buyers
The California Climate Accountability Package
Main Objective and Geographic Scope
Legal Validity and Implication for IT Vendors and IT Buyers
Canada
Canadian Sustainability Disclosure Standards
Legal Validity and Implication for IT Vendors and IT Buyers
Europe
CSRD
Main Objective and Geographic Scope
Legal Validity and Implication for IT Vendors and IT Buyers
Sustainable Finance Disclosure Regulation
Main Objective and Geo Scope
Legal Validity and Implication for IT Vendors and IT Buyers
The EU Taxonomy
Legal Validity and Implication for IT Vendors and IT Buyers
Circular Economy Action Plan
Main Objective and Geographic Scope
What is the Implication for IT Vendors and IT Buyers?
Asia Pacific and Japan
Industry- and Domain-Specific Sustainability Regulations
Carbon Border Adjustment Mechanism
Subject and Type of the Framework/Policy
Main Objective and Geographic Scope
What is the Implication for IT Vendors and IT Buyers?
The Energy Efficiency Directive and Renewable Energy Directive
Subject and Type of the Framework/Policy
Main Objective and Geographic Scope
What is the Implication for IT Vendors and IT Buyers?
Climate Neutral Datacenter Pact
Subject and Type of the Regulation /Policy
Main Objective and Geographic Scope
What is the Implication for IT Vendors and IT Buyers?