CO₂ Tracking in 2025: Compliance Strategies for Finance Leaders

Introduction

Finance teams across Europe are under pressure to comply with new rules, avoid rising costs, and meet growing expectations from investors and employees.

But compliance is only one part of the story. Done right, CO₂ tracking can also reduce costs, streamline processes, and give your company a real competitive advantage.

Why is CO₂ tracking a strategic priority in 2025?

Sustainability has moved beyond CSR. It is now at the heart of financial performance and regulatory risk. Misaligned  ESG strategies can lead to:

• Regulatory fines for non-compliance
• Reputational damage from weak reporting
• Financial risks if investors and customers lose trust

Leading companies are already acting. PwC, for example, has introduced “carbon ledgers” to turn CO₂ data into operational insights.

What regulations must companies prepare for?

European legislation

The EU’s Fit for 55 framework continues to tighten emissions controls, with expanded ETS coverage and a Carbon Border Adjustment Mechanism (CBAM) expected by 2026. The Clean Industrial Deal is accelerating decarbonisation efforts across industries.

CSRD developments

The Corporate Sustainability Reporting Directive (CSRD) now impacts over 50,000 businesses, requiring detailed ESG disclosures. In early 2025, the EU introduced a ‘stop‑the‑clock’ proposal postponing reporting requirements for some companies until 2028, and adjusting thresholds to focus on larger enterprises.

CSDDD update

The Corporate Sustainability Due Diligence Directive (CSDDD) entered into force in June 2024 and mandates human rights and environmental due diligence across value chains for firms meeting certain size thresholds.

Net-zero targets and global momentum

As of late 2023, 65% of the largest 2,000 publicly listed companies, and 63% of Fortune 500 firms, had announced net-zero targets. In the UK, 65% of companies surveyed by the Business Climate Hub now plan to achieve net zero by 2050.

What best practices drive effective CO₂ tracking?

1. Establish emission baselines:

Create reliable starting points, either project-level or portfolio-wide, to measure reductions effectively.

2. Set realistic reduction targets:

Goals should align with recognised standards (e.g. SBTi) and strike a balance between ambition and feasibility.

3. Continuous monitoring and reporting:

Compliance with MRV protocols (e.g. under EU ETS) is crucial. Clear, audited disclosures build credibility.

4. Leadership and strategic governance:

Sustainability must be embedded at the board level, driving everything from governance frameworks to green product strategies.

What role does technology play?

Technology is transforming carbon tracking in three ways:

• Digital carbon calculators with IoT capture emissions data directly from operations and supply chains.
• Automation and machine learning reduce manual work by consolidating data from ERP, PLM, and procurement systems.
• Smart procurement ensures suppliers meet ESG criteria — vital when supply chains contribute up to 80% of emissions.

Beyond measurement, many tools also support offsetting initiatives such as Sustainable Aviation Fuel (SAF) and reforestation projects.

What issues do organisations face in implementation?

1. Data quality and availability
Inaccurate, fragmented data, especially when manually collected, can undermine tracking.

2. Regulatory complexity
Reporting requirements vary and evolve rapidly; alignment is difficult without tech support.

3. Economic imperatives
Evidence shows a negative correlation between carbon emissions and financial performance, organisations with lower emissions often show better returns.

4. Regulatory rollbacks
Recent proposals to cut back CSRD/CSDDD scope risk reducing transparency and data quality.

How we simplify CO₂ tracking via expenses

At Mobilexpense, we’re helping finance leaders turn expense data into one of the most powerful—and overlooked—sources for CO₂ reporting.  
 
By embedding emissions tracking directly into finance workflows, you get audit-ready data, clear insights, and a strong foundation for compliance under CSRD and beyond. 

Discover how an expense management solution can turn your finance data into a carbon reporting asset, helping you stay compliant, avoid fines, and lead with confidence. 

Key questions finance leaders should ask

• What are the CSRD and CSDDD requirements for my company in 2025?
• How can I integrate CO₂ tracking into my expense process?
• What role does automation play in reducing reporting workload?
• How do I ensure data quality and compliance across my supply chain?
• What technology or partners can help my company achieve net-zero goals faster?

Book a demo today to see how Mobilexpense integrates CO₂ tracking into your expense management.