See article in Spanish here.

The Spanish government has introduced mandatory carbon reporting requirements for businesses through Royal Decree 214/2025.

If you work in finance, sustainability, operations, or business development, you're likely wondering what this regulation is and how it impacts your company.

In this article, we dive into the key elements of Royal Decree 214/2025, explaining what the regulation is, which companies are required to report, the reporting requirements, and how Kara can support businesses with reporting.

What is Royal Decree 214/2025?

Royal Decree 214/2025 obliges large private companies and public entities in Spain to calculate and publish their annual carbon footprint and to create five-year carbon reduction plans.

Key dates to be aware of:

• 12th June 2025 - Regulation entered into force
• 30th June 2026 - First reports (covering 2025 data) are due
• 2028 - Scope 3 carbon emissions become mandatory for reporting

Which companies are required to report under Royal Decree 214/2025?

For private companies, the regulation applies to Spanish organisations that, for the past two consecutive years, meet these criteria:

• More than 250 employees
• More than €20 million in assets, or more than €40 million in annual revenue

If your company falls within these thresholds, annual carbon footprint reporting will become a regulatory requirement.

And if it doesn't, it's still worth paying attention. More and more organisations will be requesting carbon data from their suppliers and partners. Being prepared early often translates into a competitive advantage and greater trust across the value chain.

How do companies comply with Royal Decree 214/2025?

Royal Decree 214/2025 sets out three main obligations for companies: measure, plan, and disclose emissions reductions.

1. Measure your carbon emissions annually

The first carbon footprint will correspond to 2025 carbon data and must be published before 30th June 2026.

This carbon footprint must include:

• Scope 1: direct emissions (combustion, company fleet, refrigerants)
• Scope 2: purchased electricity or energy
• Scope 3: including suppliers, logistics, waste, and other emissions in your value chain

Reporting Scope 3 emissions becomes mandatory in 2028. This means companies only need to report Scope 1 and 2 emissions for 2026 and 2027. However, because Scope 3 usually accounts for the largest share of a company's total emissions, it is smart to start collecting Scope 3 carbon data early.

2. Develop a five-year reduction plan

Companies must also create a carbon reduction plan, key parts include:

• A baseline carbon footprint (covering one year of carbon data)
• At least one quantified carbon reduction target
• Specific actions aimed at reducing emissions and achieving the carbon target(s)

The plan should be realistic and allow for year-over-year progress monitoring.

3. Publish your results in an accessible way

The regulation requires the information to be publicly available in any of the following ways:

• Corporate websites
• Annual sustainability reports
• The National Carbon Footprint Registry

This enhances transparency and allows clients, investors, and public administrations to access your data easily.

When should you start preparing for reporting?

If your company is within the scope of the regulation, we recommend you start preparing for reporting now.

The first mandatory carbon footprint calculation and carbon reduction plan covers all of the 2025 financial year and must be published before 30th June 2026, which means you'll need to have the required data, teams, and processes defined from the outset.

Preparing ahead avoids having to reconstruct data months later and ensures a rigorous, smooth reporting process - not a last-minute rush.

How Kara can support with reporting

At Kara, we help companies comply with Royal Decree 214/2025 with an easy-to-understand, reliable, well-structured process.

Key ways we provide support:

• Automatically calculating your carbon footprint using internationally recognised methodologies (GHG Protocol and MITECO factors).
• Centralising data collection so you don't rely on scattered spreadsheets.
• Generating a five-year reduction plan, based on robust carbon data.
• Preparing reports in the format required by the regulation.
• Automating annual monitoring so compliance becomes a predictable process - not a yearly scramble.

We can help

Kara supports companies' reports to a range of reporting frameworks, including Royal Decree 214/2025. Partnering with Kara will help save time, reduce manual errors, and give you the peace of mind that your reports will meet regulatory expectations.

Keen to learn more? Book a call with our team, and we'll analyse your case and explore how we can help support you with reporting.

‍