GLOBAL FACTOR: Climate Regulation

Climate regulation is advancing steadily, both in Spain and across Europe, and companies must be prepared for a scenario of greater transparency, requirements and control.

First, it is worth highlighting the approval of Royal Decree 214/2025 on carbon footprint. This regulation requires the disclosure of Scope 1 and 2 emissions, as well as the development of an emission reduction plan with targets aligned to the 1.5 °C trajectory, in line with the Science Based Targets initiative (SBTi). This is a decisive step that consolidates the integration of decarbonization into business strategy.

In parallel, the Royal Decree on climate risks, which develops Law 7/2021 on Climate Change and Energy Transition, is still under discussion. This regulation will require financial institutions, listed companies, and large enterprises to report annually on the financial impact of climate risks — both physical (floods, droughts, heatwaves, extreme weather events) and transition-related (regulatory, technological, market, or reputational changes). In other words, it will affect all companies subject to Law 11/2018 on Non-Financial Reporting (EINF). The decree takes as reference the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD) and the European drafts issued by EFRAG, ensuring that the information is comparable, transparent, and useful for investors and other stakeholders.

At the European level, on July 31 the drafts of the simplified reporting standards (SESRS) were published under the CSRD Directive. Among them, the E1 climate change standard maintains a very high level of ambition: reporting on Scope 1, 2, and 3 emissions, decarbonization plans, and analysis of both physical and transition climate risks with short-, medium-, and long-term horizons. However, its transposition into Spanish law is still pending, so we must wait to know the exact scope that this regulation will ultimately have in Spain and which types of companies it will apply to.

In short, climate regulation —whether national or European— will ultimately apply to your organization. In this context, Global Factor positions itself as a strategic ally for companies that must face these new obligations. Our objective is clear: to transform regulatory requirements into levers for innovation, resilience, and trust. Anticipating change not only reduces risks, but also opens the door to new opportunities for sustainable growth.