Why sustainability teams need carbon reporting software in 2025

Since January 1, 2025, the Corporate Sustainability Reporting Directive (CSRD) has been in effect for large EU companies. The directive applies to firms meeting two of three thresholds: over 250 employees, more than €50 million turnover, or €25 million in assets.

However, the regulatory landscape is shifting. In early 2025, the European Commission proposed an Omnibus Directive to streamline sustainability requirements. Under this proposal, only companies with more than 1,000 employees (and meeting the financial thresholds) would remain in scope for near-term CSRD obligations.

Timelines are also being adjusted:

• Large public interest entities (PIEs) with over 500 employees are still required to report from 2025 (Wave 1).
• Other large companies were originally due to report from 2026, but this has now been pushed to 2028 (Wave 2).
• Previously, listed SMEs, meaning small-cap companies on regulated EU markets, were due to start reporting in 2027. Under the new rules, these firms are no longer in scope, unless they meet the revised 1,000-employee threshold.

While these changes may offer breathing room, many mid-sized firms will still feel pressure from value chain expectations, particularly around Scope 3.

The real pain points of manual reporting

Despite the shift in expectations, many organisations still rely on spreadsheets. This introduces critical risks:

• Fragmented data from departments and suppliers
• Manual entry errors and inconsistent formats
• Delayed timelines that jeopardize compliance

CSRD mandates that companies go beyond basic environmental reporting. They must demonstrate double materiality, include financial implications of sustainability issues, and ensure disclosures are verifiable.

Scope 1, 2 and 3: what you must track

Under the GHG Protocol, organisations must report:

• Scope 1: Direct emissions from owned sources
• Scope 2: Indirect emissions from purchased energy
• Scope 3: All other indirect emissions from suppliers, employees, logistics, product use, etc.

Scope 3 is particularly difficult to capture but typically represents the majority of a company’s carbon footprint. The EPA provides a useful framework for defining organizational boundaries.

Why 2025 is the breaking point

Recent legislative adjustments may offer relief for some smaller firms (Skadden), but the direction is clear: ESG reporting is here to stay, and companies that delay digital transformation will fall behind.

Firms ahead of the curve are already implementing automated reporting systems, engaging suppliers, and integrating ESG metrics into strategic planning. The rest are still managing emails, Excel files, and fragmented data trails.

Introducing eco‑shaper: Your low‑resource, high‑impact tool

eco‑shaper is designed specifically for mid-sized firms with lean sustainability teams. It helps you move from manual reporting to automated, real-time sustainability management, no spreadsheets required.

Key benefits include:

• Full scope 1, 2 & 3 automation  Automatically capture emissions data from across departments, suppliers, and employees, no spreadsheets needed.
• Localised real-time dashboards  Track your carbon footprint as it evolves, with regional GHG databases for accurate, location-specific insights.
• Compliance-ready framework alignment  Generate reports aligned with GHG Protocol, CSRD, ESRS, and SBTi, fully audit-ready and future-proof.
• AI-powered emissions reduction planning  Identify hotspots and receive tailored recommendations to cut carbon with confidence.
• Workforce & supplier engagement tools  Simplify Scope 3 data input across your organisation with intuitive reporting for employees and vendors.
• Customisable & scalable platform  Easily adapt features to match your team size, reporting structure, and industry needs.
• Cloud-based accessibility  Access eco-shaper securely from any browser, built for collaboration across locations.
• Enterprise-grade security & data ownership  Your data stays encrypted, stored regionally, and fully under your control.
• Transparent pricing & real support  No surprise fees. Get hands-on guidance from sustainability experts when you need it.
• Built-In AI environmental assistant  Sprout helps you navigate your path to net zero with industry-aware, location-based insights.

eco‑shaper is built to be modular and flexible, it’s tailored to the real-world needs of mid-market companies.

How eco‑shaper makes middle-market sustainability scalable

Final thought: manual is no longer an option

2025 is not the year to survive, it’s the year to scale. As regulatory expectations increase, sustainability teams can’t afford to stay reactive. They need tools that turn complexity into clarity.

Book a demo with eco-shaper today and discover how to meet CSRD compliance, engage your team, and focus on real emissions impact, not reporting admin.