As environmental regulations tighten and public scrutiny rises, Irish county councils are facing a new and complex challenge: how to confidently and legally verify the movement of materials and emissions across their construction and maintenance projects.

For years, the industry standard has relied on paper dockets, manually completed spreadsheets, and assumed emissions factors passed up the chain from subcontractors. But those days are coming to an end.

As the Corporate Sustainability Reporting Directive (CSRD) takes full effect across the EU, Scope 3 emissions have become a central focus in sustainability reporting. For large and listed companies, the requirement to disclose value chain emissions marks a significant step up in climate accountability.

Unlike Scope 1 and 2 emissions—relating to direct operations and purchased energy—Scope 3 encompasses all other indirect emissions across an organisation’s value chain. These include transport, procurement, subcontractors, materials, and waste. It’s where the majority of emissions typically occur—and where the biggest challenges lie.

As sustainability regulations tighten across Europe, the pressure on companies to back up their climate claims has never been greater. Under the Corporate Sustainability Reporting Directive (CSRD), organisations must disclose detailed, verifiable emissions data—including Scope 1, 2, and 3—with the same rigour as financial reporting.

The European Union has allocated €1.4 billion in Cohesion funding to Ireland for the 2021-2027 period. This funding supports projects that align with the EU's ambitious sustainability goals, making it a critical resource for infrastructure, green energy, sustainable transport, and environmental protection initiatives—all of which are tied closely to the construction and development sectors.

The construction sector faces mounting pressure to meet sustainability goals, enhance transparency, and comply with regulatory requirements like the Corporate Sustainability Reporting Directive (CSRD). Hub360 offers a tailored solution that simplifies sustainability reporting, reduces operational inefficiencies, and positions companies as leaders in ESG performance.

The construction industry is under increasing pressure to adopt sustainable practices, particularly as governments and financial institutions tie green funding to strict environmental standards. One of the most crucial aspects of achieving compliance with these standards is proper waste tracking. The EU Taxonomy Regulation (2020/852) sets out clear technical screening criteria that construction projects must meet to qualify for green funding. Proper waste management and resource use monitoring are essential for demonstrating compliance and securing investment. Here’s why.

UK companies may be affected by the CSRD in the following scenarios:

1. Listed Securities: Companies with securities listed on an EU regulated market must comply with CSRD reporting obligations, regardless of their location.

2. EU Net Turnover: Companies with an EU net turnover exceeding €150 million over the past two consecutive years are subject to the CSRD if they have:

   • An EU subsidiary that is a large undertaking or has listed securities, or

   • An EU branch generating over €40 million in turnover in the previous financial year.

On 5th July 2024, the European Union (Corporate Sustainability Reporting) Regulations 2024 were signed into law by Minister Peter Burke. These regulations, which come into effect on 6th July 2024, are set to significantly change the landscape of corporate reporting across Europe. As part of a broader effort to align with the European Green Deal and the EU’s Action Plan for Financing Sustainable Growth, these regulations impose stringent new requirements on companies, particularly in the areas of sustainability and governance. The introduction of these regulations highlights the growing importance of environmental, social, and governance (ESG) considerations in business operations.

The concept of a circular economy—where resources are kept in use for as long as possible, extracting maximum value before recovering and regenerating products and materials at the end of their service life—is crucial for the construction industry. With construction and demolition activities accounting for a significant portion of global waste, the sector is at the forefront of the circular economy challenge. However, without the proper digital tools to track material flows, monitor waste streams, and ensure compliance with sustainability directives, achieving circular economy goals remains out of reach.