Important World Wide Sustainability Obligations Summarized

Regulations around Sustainability

Here are some of the most important and pressing sustainability regulations by region that decision-makers and company leaders need to be aware of and address:

European Union

• European Green Deal: The European Green Deal is a comprehensive policy initiative by the EU to make Europe climate neutral by 2050. Companies operating in the EU need to be aware of the regulations and changes being introduced as part of this initiative and adapt their business models accordingly. This may include reducing carbon emissions, promoting circular economy and sustainable agriculture, and investing in sustainable activities.
• Non-Financial Reporting Directive (NFRD): Large companies in the EU are required to disclose information on their environmental, social, and governance (ESG) performance as part of the NFRD. To comply with this regulation, companies need to develop sustainability reporting frameworks, establish ESG metrics, and communicate their sustainability performance to stakeholders.

Asia

• China’s Green Credit Policy: The Green Credit Policy is a regulation in China that incentivizes banks to lend to companies that meet certain environmental standards and penalizes those that do not. Companies operating in China need to be aware of this regulation and ensure that their operations meet the environmental standards set by the government.
• Sustainable Finance Initiative: Several countries in Asia, including Japan, Singapore, and Hong Kong, have launched sustainable finance initiatives to encourage investments in sustainable activities. Companies operating in these countries can tap into these initiatives to raise funds for their sustainability projects.

Americas

• The Paris Agreement: The Paris Agreement is a global agreement under the United Nations Framework Convention on Climate Change (UNFCCC) that aims to limit global warming to well below 2 degrees Celsius. The United States has withdrawn from this agreement, but many American companies have pledged to continue supporting the goals of the agreement.
• California’s Cap and Trade Program: California has implemented a cap and trade program to limit greenhouse gas emissions from businesses operating in the state. Companies operating in California need to comply with this program by monitoring their emissions, purchasing allowances to emit, or investing in offset projects.
• In general, decision-makers and company leaders need to be aware of sustainability regulations in their regions and adapt their business models accordingly. This may include investing in sustainable technologies, reducing emissions, promoting circular economy, and establishing sustainability reporting frameworks. Companies can also collaborate with governments, NGOs, and other stakeholders to develop sustainability initiatives that benefit both their business and society as a whole.

Sustainability-Related Regulations Worldwide, in general

European Green Deal (December 2019)

• Reduction of greenhouse gas emissions by at least 50% by 2030 compared to 1990 levels
• Introduction of a carbon border tax on certain imported goods to prevent “carbon leakage”
• Increase in energy efficiency and renewable energy use
• Promotion of circular economy and sustainable agriculture
• Implementation of a sustainable finance strategy to redirect investments towards sustainable activities

The Non-Financial Reporting Directive (NFRD) (2014)

• Enhanced transparency and accountability of companies’ sustainability performance
• Increased investor awareness of ESG risks and opportunities
• Encouragement of companies to improve their sustainability performance to meet investor expectations

The United Nations Guiding Principles on Business and Human Rights (2011)

• Increased accountability for companies to respect human rights
• Improved stakeholder engagement and communication on human rights issues
• Encouragement of companies to establish due diligence processes to identify and address human rights risks

The Kyoto Protocol (1997)

• Establishment of binding emissions reduction targets for developed countries
• Creation of carbon markets to facilitate emissions trading
• Encouragement of the use of renewable energy and energy efficiency measures

The Rio Declaration on Environment and Development (1992)

• Integration of economic, social, and environmental considerations into decision-making
• Recognition of the need for global cooperation to address environmental challenges
• Promotion of public participation and access to information on environmental issues

Examples for how Microsoft (MS) Customers do their part for Sustainability with MS Tech

Microsoft AI can help achieve sustainability goals in the fashion retail industry by using IoT and AI technologies to improve energy management and reduce environmental impact. The Microsoft Cloud for Sustainability can help apparel manufacturers automate data collection, analysis, and action to reduce their carbon footprint, water footprint, waste footprint, and social impact. AI Generated Fashion can reduce overproduction, inventory waste, and carbon emissions by enabling on-demand and personalized fashion production. Case studies show that Microsoft AI can also help Starbucks monitor and optimize energy efficiency, reduce waste, and enhance customer experience, and Marks & Spencer analyze customer behavior, optimize store operations, improve product quality, and reduce environmental impact. Microsoft Cloud for Retail, Microsoft Teams, and Microsoft Power Platform can synergize with Microsoft AI to enable collaboration in the fashion retail industry.

1. Starbucks using Microsoft Azure IoT Central and Azure Sphere: https://www.microsoft.com/en-us/AI/customer-stories/starbucks
2. Marks & Spencer using Microsoft Azure AI: https://www.microsoft.com/en-us/AI/customer-stories/marks-spencer
3. Fashable using Microsoft Azure AI: https://customers.microsoft.com/en-us/story/1558909662014453187-fashable-retail-azure

The market place offering around partners

Get started, maybe with some of the partners in the wide Microsoft partner network? Check this out:

https://appsource.microsoft.com/en-us/marketplace/cloudsIndustry?page=1&industry=sustainability