Spain enacted the Carbon Footprint and Reduction Planning Decree (Royal Decree), fulfilling the Climate Change and Energy Transition Law. The decree builds on prior non-financial reporting rules, bringing more clarity to resolve past inconsistencies.
In-scope companies under Royal Decree now face three core environmental obligations. They have to:
- Annually calculating their corporate carbon footprint. Scope 3 (other indirect emissions): all other indirect emissions occurring along the companyâs value chain (e.g. third-party logistics, employee business travel or waste management)
- Adopt and publish a five-year plan showing emission reduction targets, how the company will reach it, and how to monitor its progress
- Share the carbon footprint and emissions reduction plan publicly, free of charge, in an easy-to-access formatâusually on the companyâs website
This shifts carbon accounting from voluntary disclosure to a core legal obligation. Boards and management should ensure accurate measures of emissions and create credible reduction plans aligned with the 2050 neutrality goal, supported by well-documented data.Â
Participation in Spainâs Carbon Footprint Registry now brings strategic benefits, including official recognition making it a competitive advantage.