Sustainable Transformation in Europe: CBAM, EUDR, Carbon Footprint and CSRD
- Rafael Ansino
- Aug 10, 2025
- 2 min read
🌍 Sustainable Transformation in Europe: CBAM, EUDR, Carbon Footprint, and CSRD – What do they have in common and how can we digitalize them?
When we launched our initiative to create an #ESG+F Data Hub with Microsoft's sustainability teams, we established a core principle that solutions would be scalable and allow companies to implement them in a modular and incremental manner, seamlessly, thanks to a unified data model that facilitates the complete digitalization of the value chain.
In a context of growing regulatory demands, four European laws are paving the way toward a more sustainable, traceable, and transparent economy:
🔹 Royal Decree 214/2024 – Carbon Footprint
This Spanish decree requires organizations to calculate, record, and publish their carbon footprint, as well as establish reduction plans. It replaces Royal Decree 163/2014 and is aligned with Law 7/2021 and the European Green Deal.
🔹 EUDR – EU Deforestation Regulation
It prohibits the marketing of products linked to deforestation. Companies must demonstrate that their supply chains are free of negative forest impacts through geographic traceability and verifiable documentation.
🔹 CBAM – Carbon Border Adjustment Mechanism
It applies a "climate toll" to imports from carbon-intensive sectors (steel, cement, fertilizers, etc.). Starting in 2026, companies will be required to report the emissions embodied in their imported products.
🔹 CSRD – Corporate Sustainability Reporting Directive
It requires more than 50,000 companies in Europe to report detailed information on sustainability, governance, and environmental and social impact, following ESRS standards. It introduces mandatory auditing and digital formats (XHTML + XBRL).
🔗 What do these laws have in common?
Climate and environmental transparency: All require verifiable reporting on emissions, impact, or sustainability.
Digital traceability: Requires accurate data on the value chain and product lifecycle.
Corporate responsibility: They impose direct obligations on manufacturers, importers and marketers.
Mandatory digitalization: CSRD and CBAM require interoperable digital formats for reporting.
💡 Recommendations for digitizing these laws
As sustainability and cloud professionals, we must embrace technology solutions that enable:
✅ Automate carbon footprint calculations with tools based on the GHG Protocol and ISO 14064.
✅ Integrate geographic traceability into supply chain platforms to comply with EUDR.
✅ Implement CBAM reporting systems that collect emissions data by product and country of origin.
✅ Use standards like XBRL and ESRS for interoperability and CSRD compliance.
✅ Centralize information in digital hubs like GreenAI Data Hub to facilitate audits, benchmarking, and multi-legal reporting.
📣 Sustainability is no longer just an option; it's a regulatory obligation. Digitizing these laws not only ensures compliance but also positions companies as responsible leaders in the new European market. Thanks to Hanasaki's modules, you can scale module by module depending on your needs.
Comments