Why Is Environmental Reporting So Important?
Modern companies aren’t just about delivering products or services—they’re also expected to operate responsibly and transparently. Environmental reporting is no longer just a legal requirement; it’s a sign of corporate maturity and social responsibility.
Being open about your company’s CO₂ emissions and resource consumption is essential for credibility. Customers increasingly support brands with a long-term, sustainable vision. Investors want to know whether a company is acting ethically and aligning with sustainability goals.
But let’s face it: ESG reporting can be complex. Gathering scattered data, applying the right emission factors, and ensuring compliance with all regulations is no small task. That’s where ERP systems come in—connecting operational data with ESG reports to make the process manageable.
Microsoft’s Copilot for Sustainability is an AI-powered tool that simplifies this process by automating key elements of environmental reporting and helping organizations meet their regulatory obligations.
What Is Copilot for Sustainability?
Microsoft has already launched a powerful tool called Microsoft Sustainability Manager, which provides centralized access to environmental data—like emission charts and procurement documentation. While separate, it can be integrated with Business Central for a comprehensive ESG ecosystem.
Copilot for Sustainability was introduced as part of the 2025 Release Wave 1 for Dynamics 365 Business Central and will be available via integration with Microsoft Cloud for Sustainability.
This smart feature allows you to:
- Calculate CO₂ emissions based on data from logs (e.g., travel, accommodations, transport)
- Use Excel files with emission factors or access public datasets
- Automatically match data with the correct emission factor
- Review, adjust, and approve data before submission
- Save results to the Sustainability Journal and post them into your ERP
Why Integrate ESG into Your ERP?
With Copilot, Microsoft enables ESG reporting that aligns with European standards directly within Business Central.
Key benefits include:
- Improved data accuracy: Reduce inconsistencies in ESG figures
- Enhanced transparency: Build investor and stakeholder trust with clear reports
- Easier regulatory compliance: Stay ahead of frameworks like CSRD and BRSR
- Cross-department collaboration: Centralized ESG data in a single system
External Data Analysis with Copilot for Sustainability
Copilot goes beyond your ERP—analyzing data from external files and public databases to deliver fast, accurate emission reports. It handles business travel, accommodation, transport, and more.
For example: A company using Dynamics 365 Business Central can import travel and lodging invoices directly from its accounting system. Copilot automatically recognizes the service type, applies the correct CO₂ emission factor, and suggests the values for approval—no manual calculations needed.
Flexible and Multifunctional ESG Tool
Copilot for Sustainability supports various data types, such as emission factors for vehicles or flights, and adapts to different markets and regions. With these capabilities, companies can monitor emissions more effectively and align operations with sustainability goals.
This way, Dynamics 365 Business Central supports not just financial and operational processes, but also your environmental initiatives.
When Will Copilot for Sustainability Be Available?
Copilot will be publicly available with update 26.1 or 26.2. Microsoft plans to expand functionality in future versions.
ESG Tools for SMBs
Copilot for Sustainability is just one of many tools we offer to help organizations with ESG and environmental reporting.
Choosing the right solution depends on your business needs. Want to know which tool fits your company best? Get in touch for a free consultation!
