A practical guide to navigating global net zero regulations and ESG reporting with GNFZ
As we make plans for 2026, we can no longer afford to ignore the urgent climate deadlines and the dire consequences of not meeting them. The need for rapid decarbonization at scale could not be greater. Around the globe, countries are struggling with climate disasters, extreme weather events and the consequences of a warming and increasingly destabilized climate. All of these combined are directly affecting the lives of people and their way of life; businesses and their operations and financial performance; and municipalities, states and countries by exposing them and their populations to extreme risks and highly increased costs.
It does not have to be this way. Various ESG frameworks and standards provide the guidance to implement strong policies to mitigate these risks for public as well as private institutions while also being able to report to satisfy the city/ state/ country level regulations and mandates. Global Network for Zero (GNFZ) provides a strong, measurable backbone at various levels, by not only supporting local resilient infrastructure but also third party validated data for measuring, tracking and reporting the compliance efforts.
In our recent articles, we have covered how GNFZ certification supports various mandatory and optional regulations for both net zero and ESG around the globe. Here is a quick overview of what each does:
| Framework / Standard | Type | Core Purpose | Output |
|---|---|---|---|
| GNFZ (Global Network for Zero) | Certification | Certify credible progress and achievement of net zero across assets, organizations, or portfolios | Third-party Net Zero Certificate (milestone-based) |
| GHG Protocol | Accounting Standard | Define how to measure and categorize GHG emissions (Scopes 1–3) | Verified GHG Inventory |
| CDP (Carbon Disclosure Project) | Disclosure / Transparency | Publicly disclose emissions, risks, and strategies to investors, customers, and regulators | Score (A–D) and detailed disclosure record |
| SBTi (Science Based Targets initiative) | Target Validation | Validate that climate targets align with the Paris Agreement (1.5 °C or well-below 2 °C) | Approved Targets (near-term & net-zero) |
| TCFD / ISSB IFRS S2 | Risk & Financial Disclosure | Standardize reporting of climate-related risks, governance, metrics, and strategy | Climate-risk section in Annual / Sustainability Reports |
| GRI (Global Reporting Initiative) | ESG Reporting Framework | Broader sustainability disclosure framework (economic, social, environmental) | GRI-aligned Sustainability Report |
| ISO 14068 / PAS 2060 | Carbon Neutrality Certification | Certify temporary carbon neutrality (offsets allowed) | Carbon Neutral Statement / Certificate |
How do all the above interlock for a corporate net zero architecture?
A corporate net zero architecture may follow the conceptual 5 step journey below. It is important to note that the GNFZ certification meets companies where they are on their decarbonization journey - from start to finish. Our GHG Protocol based approach, rooted in objective data, covers Scope 1, 2, and 3 with authority.
Step 1. Foundation: Measurement to build your emissions data and accounting base.
GHG Protocol → defines Scope 1, 2, 3 calculation methods; used by GNFZ certification process to calculate, reduce and track emissions.
Data from here feeds into all others (CDP, SBTi, GNFZ, etc.).
Step 2. Commitment: Target-Setting to show credible science-based ambition.
SBTi → validates 2030 and 2050 targets.
SBTi approval signals alignment with Paris goals.
GNFZ can accept SBTi targets as valid inputs for certification.
Step 3. Action & Certification: Implementation to demonstrate and verify tangible progress.
GNFZ Certification → verifies your net zero roadmap, milestones, and implementation.
Includes embodied and operational carbon.
Annual submission keeps certification active.
Can bridge between GHG inventory and CDP / GRI/ other disclosures.
Step 4. Disclosure: Transparency & Reporting to communicate outcomes and risks publicly.
CDP → share verified data and targets with investors, supply chain, and markets.
TCFD / ISSB S2 → disclose climate risk and governance in financial filings.
GRI → integrate climate with social and governance reporting.
GNFZ results (certificates, data, milestones) strengthen all disclosures.
Step 5. Recognition / Communication: Use certifications and scores to demonstrate leadership.
Combine SBTi-approved targets + GNFZ certification + CDP A-score = very strong external credibility.
Include ISO 14068 or PAS 2060 only for interim “carbon neutrality” stages (short-term offsetting).
To summarize:
| Step | Tool / Standard | Output | Benefit |
|---|---|---|---|
| 1. Measure | GHG Protocol, GNFZ certification kick off | Verified Scope 1–3 emissions | Foundational dataset |
| 2. Commit | SBTi | Approved near-term & net zero targets | Science-based credibility |
| 3. Certify | GNFZ | Certified progress & milestones | Demonstrated achievement |
| 4. Disclose | CDP / TCFD / ISSB / GRI | Public report, CDP score | Investor transparency |
| 5. Maintain / Communicate | Annual GNFZ re-verification / CDP update | Ongoing compliance | Continuous improvement |
How do these regulations cover your region/ country?
GNFZ certification can help you meet any of the mandatory or voluntary regulations in your area(s) of the world by providing a strong data driven platform based on GHG Protocol. Listed below are all the countries following mandatory/ voluntary disclosure requirements. Follow the hyperlinks to see how GNFZ certification connects to all the major standards/ frameworks:
EU - sustainability regulations, including Mandatory CSRD, CSDDD, EU Taxonomy, Voluntary SFDR and EMAS.
Singapore - MAS: Green Taxonomy, ERM guidelines, ESG fund disclosures and annual requirements launched); full mandatory ESG disclosure expected in line with ISSB from 2025 onward.
US - SEC Climate Disclosure Rule finalized in 2024 but currently facing legal hurdles, intended to mandate risk, governance, and GHG emissions disclosures for public companies; California legislation; LL97 (NYC).
UAE - Federal Law 11.
India - Business Responsibility and Sustainability Report (BRSR) introduced in 2023 by SEBI, mandatory for top 1000 listed companies.
UK - Mandatory since 2022 under TCFD-aligned; Sustainability Disclosure Standards (SDS) based on ISSB (IFRS S1 & S2) take effect in 2025 and align with the UK’s net-zero 2050 strategy.
Canada - Federal disclosure for banks/insurers to begin in 2024 (TCFD-aligned); voluntary Canadian Sustainability Disclosure Standards (CSDS) launched in Dec 2024, aligned with ISSB’s IFRS S1/S2.
China - Currently voluntary guidelines (2022) for ESG; New self-regulatory guidelines in May 2024 emphasize double materiality and mirror EU CSRD.
Australia - Australian Sustainability Reporting Standards (ASRS), aligned to ISSB’s IFRS S1/S2 mandatory from Jan 1, 2025, for large companies/revenue thresholds; Treasury Law Amendment Bill mandates climate-related financial reporting in stages from 2025.
Japan - Mandatory from 2022 for listed companies under TCFD; developing ISSB-aligned standards via SSBJ.
Singapore - full mandatory ESG disclosure expected in line with ISSB (IFRS S1 & S2) from 2025 onward.
Switzerland - ESG reporting is mandatory based on TCFD guidance and must include transition plans.
Turkey - Local ESG reporting based on TCFD/ ISSB since Jan 2024 for capital-market oriented firms above revenue/asset thresholds.
Egypt - Detailed TCFD-aligned reporting is mandatory.
Countries like New Zealand, Malaysia, Brazil, South Africa and Philippines have mandatory climate disclosures currently, alignment plans are underway in some cases, like with TCFD for Malaysia and with ISSB alignment for Brazil.
In addition, various countries follow the recommendations of:
GRI and SASB – Widely used voluntary reporting frameworks; GRI for comprehensive sustainability, SASB for investor-oriented sustainability reporting of material topics.
SBTi and CDP - New voluntary initiatives in early 2025 improving standardization and rigor in carbon markets, pushing for verified, precise emissions targets.
Wherever you are on the pathway to zero and meeting your mandatory or voluntary regional commitments, GNFZ can help you get started immediately and with confidence. Contact us to get started today!