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Microsoft Dynamics 365 Business Central now includes enhanced sustainability management features to help companies comply with EU sustainability regulations, including the Corporate Sustainability Reporting Directive (CSRD).
The CSRD requires large and listed companies (excluding micro-enterprises) to report on environmental, social, and governance (ESG) issues starting from 2024, with phased implementation through 2028.
Business Central supports this by allowing businesses to collect, calculate, and track sustainability data—such as greenhouse gas emissions—via sustainability journals, purchasing documents, and external APIs. Users can monitor progress through KPIs, scorecards, and customizable reports, including comparisons with financial data. Business Central 26 (Dynamics 365 2025 release wave 1) adds tools to simplify CSRD reporting through taxonomy-based data mapping and report layouts, even without a dedicated ESG reporting tool.
These tools enable businesses to meet compliance requirements while making sustainability a strategic part of their operations.
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