ESG and carbon accounting in 2026: trends and projections.

In 2026, environmental, social, and governance (ESG) reporting and carbon accounting stop being an annual PDF exercise and start becoming core business infrastructure.

‍

With 2030 looming as the first major checkpoint for global climate and sustainability targets, efforts to report ESG data will ramp up. That’s obviously a consequence of increasing regulations, especially in the European Union. And of course, Artificial Intelligence (AI) will sit right in the middle of that shift – complicating the landscape and, ironically, making it possible to manage.

‍

Let’s dig in. 

‍

The regulatory landscape in 2026

Regulations, ESG reporting, and carbon disclosures go hand in hand. The past two years have seen some of the most sweeping changes in regulatory history, particularly in the EU, courtesy of the CSRD (Corporate Sustainability Reporting Directive). 

‍

Although the implementation of CSRD has been delayed, the reality remains that businesses – especially the big ones – will need to report on ESG in the long run. 

‍

CSRD changes, omnibus proposal, and audit readiness

CSRD and its accompanying framework, the European Sustainability Reporting Standards (ESRS), will be the centre of focus in 2026. But the CSRD could see drastic changes in mere months, given the recent Omnibus proposal by the EU authorities, which calls for a less stringent threshold. 

‍

Should the omnibus proposal be implemented, the scope of CSRD may be reduced significantly, with reporting requirements falling pretty much on large companies only. That, obviously, will be a big step back: it sidelines a chunk of the economy while still marketing itself as “sustainable.”

‍

There’s also a strong chance that the proposal doesn’t get support and CSRD stays intact as initially, impacting a wide range of EU and international companies, including listed SMEs. Regardless of the outcome, businesses will need to stay audit-ready and take steps to gather ESG data.

‍

EU Taxonomy tightening 

The EU Taxonomy, a classification system defining which economic activities are environmentally sustainable, is tightening in 2026. New technical screening criteria will target sectors such as manufacturing, real estate, and Information and Communication Technology (ICT), and the “Do No Significant Harm” (DNSH) requirements will impose stricter thresholds. 

‍

Companies will no longer be able to rely on broad “green narrative” statements. They will need to show alignment of Opex, Capex, and revenue with sustainable activities. Of course, this focus will shift investor attention from how companies claim they are sustainable to how much of their business is genuinely taxonomy-aligned.

‍

This is a positive outcome, given the fact that we’ve been seeing hollow promises and oversold claims for years. Now, the EU Taxonomy has the potential to set the record straight on what actually qualifies as sustainable in areas like manufacturing, real estate, and technology. 

‍

Global convergence on ESG reporting

One of the most significant shifts heading into 2026 is the gradual convergence of global ESG reporting frameworks. The International Sustainability Standards Board specifications (IFRS S1 and S2) are becoming the basis for adoption in multiple jurisdictions. Companies listed in the U.S. under the SEC will face increasing pressure to disclose climate-related risks and emissions. In Canada, Japan, and Singapore, similar alignment is underway. 

‍

The practical implication is that large multinational companies will adopt a single global sustainability dataset, which then feeds into different local formats (CSRD, SEC, ISSB) rather than maintaining wholly separate reporting systems region by region.

‍

Carbon accounting becomes operational, not a yearly box to tick

Just as financial data analysis is an ongoing and core responsibility for most companies, so will carbon accounting be. That’s a direct result of ESG reporting requirements and shifting sentiment among investors and consumers.

‍

Businesses will need to track emissions regularly, not just for the annual reporting, but to use that data to strategise and make operations more sustainable. That’s good optics for them on the front-facing side – plus it’s a growing trend for stakeholders in the boardroom to want to know the environmental impact of their investments. 

‍

Facilitating all this is the availability of data, such as hourly energy use, which enables continuous carbon accounting. But for a broader, industry-wide revolution, organisations will have to build centralised carbon-data platforms, integrate activity-data flows, and govern version history and audit traceability.

AI’s carbon footprint in the spotlight

In 2025, AI dominated headlines, and companies doubled down on research and development. In the wake of that move, there’s been a surge in data centre construction, especially in the US, raising concerns about AI’s power draw. 

‍

That concern isn’t going away; it’s going to be a recurring headline. And it’s not just hand-wringing from a few think tanks – these data centres require huge amounts of electricity and water. 

‍

Take a recent report by the International Energy Agency (IEA), which found that data centres’ electricity consumption is projected to double to around 945 TWh by 2030. That will represent almost 3% of global electricity use. In that base-case scenario, accelerated (AI-driven) servers grow 30% per year from 2024 to 2030.

‍

Need more? Look no further than a study released by the International Telecommunication Union (ITU), which reported that emissions from four leading AI-focused companies rose on average by 150% between 2020 and 2023.

‍

These trends mean that in 2026, organisations deploying AI will need to account for the carbon footprint of their models, data centre use, and inference operations, and disclose that alongside traditional Scope 1 and 2 emissions.

‍

AI’s use in carbon accounting and ESG reporting

Don’t be mistaken – not all AI is bad for the environment. The technology could improve ESG reporting and GHG accounting, which has been a challenge due to data limitations, especially for Scope 3 emissions. 

‍

Early adopters are now leveraging AI to extract invoices, utility bills, fuel logs, supplier data, and sensor outputs. As AI models get smarter, they will be able to transform unstructured emissions data into structured emissions data, detect anomalies and data gaps, and automatically generate disclosure reports aligned with major frameworks. 

‍

Basically, AI will supercharge current carbon accounting solutions. 

‍

ESG data quality will become a differentiator 

As ESG disclosure moves from narrative to audit-ready, data quality will be a key differentiator among firms. Companies with strong primary data, such as direct activity measurements, supplier-verified emissions data, and IoT (Internet of Things) sensor flows, will have greater transparency and stronger targets than those relying on spend-based proxies or estimated emissions. 

‍

For instance, supply-chain emissions (Scope 3) can make up 70%-90% of a company’s total carbon footprint. But they’re not always reported as such – if they’re even reported at all. 

‍

But in the near future, audit systems will reward digital traceability, version history, automated checks, and governance workflows. The quality of emissions and ESG data will not only determine compliance but will also increasingly influence the cost of capital, investor access, and competitive positioning.

‍

Speaking of quality data, comundo is at the forefront of reliable, verifiable, and accurate energy data in the Nordic market. It enables real estate portfolios to achieve accurate carbon accounting for their assets, use the data for optimisations, and gain green certifications. You can learn more here.

‍

Green financing goes mainstream

Sustainable finance is turning from a green niche into a red-hot market. The United Nations Conference on Trade and Development (UNCTAD) reported that the sustainable finance market grew to more than USD 8.2 trillion in 2024, up 17 % from 2023. And green bonds surpassed an eye-watering USD 1 trillion that year.

‍

Numbers not big enough just yet? Well, analysts project the broader green financing market to reach USD 38 trillion by 2034, at a CAGR of 19%. 

‍

These numbers make it evident that in 2026 and beyond, more banks and financial institutions will pivot toward green loans, mortgages, and other instruments. Green finance will become not just a fringe theme, but a mainstream funding channel for manufacturing, real estate, ICT, and infrastructure. 

‍

And, as always, it all comes down to data.

‍

Supply chain transparency, scope 3 standardised (finally)

Continuing on the point of ESG data quality, the collection and reporting of value chain emissions will gradually become more standardised. By 2026, regulatory regimes such as CSRD and supply chain due diligence rules will force companies to map supplier emissions, engage upstream vendors, and disclose verified scope-3 data (for larger issuers). 

‍

Standardised templates, industry-specific emissions factors, and common supplier data protocols will emerge. And all of that is good, considering the fact that supply chain emissions have been a big roadblock in targeting global emissions and achieving near-term targets, let alone the all-too-ambitious 2050 net-zero dream. 

‍

Wrap up

Looking ahead, it’s obvious ESG and carbon accounting will no longer be optional or peripheral. They will sit at the core of corporate strategy, finance, operations, and compliance. 

‍

Firms that invest early in high-quality ESG data systems, embed carbon accounting in real-time operations, and ensure audit readiness will definitely have a competitive advantage. They will be compliance-ready, when – not if – regulations begin to apply. 

‍

The only question left in the green story is: will you read it – or will you lead it?

‍