Europe’s regulatory landscape is changing, with sustainability being a key focus area. As a part of this, the European Union’s (EU’s) Corporate Sustainability Reporting Directive (CSRD) requires companies to publish regular reports on how their activities impact the environment. Larger companies are already doing this, but from January 1, 2026, smaller companies will also be required to submit reports. For some, this will not be an easy task. In our latest podcast, we talk to Francis D’Souza from Banyan.eco, the company that is helping other companies meet regulatory requirements and address their environmental, social and governance (ESG) reporting challenges.

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Key takeaways from the discussion

Upcoming changes in regulations on emission measurement and reporting

•By early 2026, the EU's CSRD will require companies to report their Scope 1 (direct emissions), Scope 2 (emissions from energy consumption) and Scope 3 (emissions from supply chain) details.
•Similar regulations are also coming into effect in other countries, like the US, Singapore and Australia.
•These new regulations aim to bring homogenized reporting across sectors.

Scope 3 emission reporting challenges

•Scope 3 (supply chain emissions) can be the most difficult to report due to its complexity and reach.
•It can involve a long chain of suppliers.
•The electronics sector, with its multi-component and multi-geography nature, presents a significant challenge for reporting Scope 3 emissions.

Banyan.eco solution

•Banyan.eco can help electronics companies in measuring their emissions, especially Scope 3.
•The company leverages AI and machine learning (ML) to automate the process and improve data quality over time. Using these tools, companies can offer faster and better data quality.
•Banyan.eco’s software calculates a product’s carbon footprints in seconds, compared to weeks or months using traditional methods.

Impact on eco design

•Electronics companies can also use Banyan.eco's data for eco-design, thus allowing them to assess the environmental impact of products before they are built.
•This helps companies make informed decisions during the design phase to reduce the environmental footprint of their products.

Analyst takeaways:

•The EU’s CSRD aims to help companies become more transparent about their environmental impact. While this is relatively simple for Scope 1 and Scope 2 emissions, it is a major challenge for Scope 3 emissions, where a long and complex value chain can make it difficult to assess a company's overall carbon footprint.
•Smaller companies, in particular, are finding it difficult to report their total emissions, as they typically lack the resources to track their Scope 3 emissions in detail.
•Banyan.eco helps these companies by using AI to create digital twins of their products and generate a product’s carbon footprint in minutes or even seconds, whereas it can take weeks or even months using traditional methods.

Podcast Chapter Markers

01:02 -- Francis talks about the new regulatory changes around emission measurements and reporting in Europe over the next year.

04:35 – Francis talks about the most difficult reporting scopes among the three.

06:15 – Francis talks about the challenges companies face when it comes to reporting emissions.

07:59 -- Francis on what Banyan.eco does and how it can help small companies.

09:11 -- Francis shares some examples of typical carbon footprints of electronic devices that the company is tracking.

11:13 -- What is it that Banyan.eco does differently compared to other players in the industry?

12:58 -- Francis on eco-design for sustainable product regulation and how it could impact the industry.

15:32 -- How does Banyan.eco help companies? And what is behind the name and its significance?

BONUS VIDEO