Sustainability is no longer just a buzzword - it's becoming a core part of how modern businesses operate, especially in the tech world. Whether you're a startup founder, product manager, or developer, there's a growing chance you'll come across terms like SBTI and CSRD. At first glance, they might sound like regulatory red tape, but understanding them can help future-proof your business and even give you a competitive edge.
In this post, we'll break down what these acronyms mean, why they matter, and what steps tech companies (yes, even small ones) can take to align with them.
Why Should Startups and Developers Care About Sustainability Reporting?
You might be thinking: We're a SaaS startup, not a manufacturing plant - why should we care about carbon footprints or emissions reporting?
Fair question. But the reality is that sustainability reporting is expanding beyond heavy industry. Investors, regulators, and even consumers are demanding more transparency about how businesses operate - and that includes digital companies. Major corporations are now required to disclose emissions from their entire supply chain, which means that if your company provides a digital service to a large enterprise, you might be asked to share your environmental data too.
It's becoming part of the procurement process. If your startup can't demonstrate sustainability alignment, you might get passed over - even if your product is amazing.
What Is the SBTI?
The SBTI, or Science Based Targets initiative, helps businesses set targets to reduce their greenhouse gas emissions in line with what climate science says is necessary to limit global warming.
In simple terms: It's a global framework that tells companies, "Here's how much and how quickly you need to cut emissions to help avoid the worst effects of climate change."
Adopting SBTI-aligned targets is voluntary, but it's gaining momentum - especially among tech companies that want to signal climate responsibility. From a developer or product perspective, this might mean working with your ops or sustainability team to build data tracking systems that monitor energy use, cloud emissions, or app efficiency.
You can learn more about how companies define and commit to these science-based targets through SBTI.
What Is the CSRD?
The CSRD (Corporate Sustainability Reporting Directive) is a regulation introduced by the European Union that requires companies to publicly report detailed information about their environmental and social impact. It expands on earlier sustainability rules and applies to a broader range of companies - including some non-EU firms that do business in Europe.
Here's what you need to know in plain terms:
- If your company operates in the EU or works with EU-based clients, the CSRD could apply to you - directly or indirectly.
- It's not just about carbon emissions. The CSRD covers a wide range of ESG factors: environmental impact, diversity, governance, and more.
- Reporting will need to follow standardized formats and include third-party audits - meaning this isn't just a one-off PowerPoint deck.
So why should a developer or product manager care? Because many of the metrics that need to be reported come from internal systems - and that includes data your team collects, stores, or interacts with.
Want to understand how CSRD reporting works in detail? You can check out this resource on CSRD and how companies can get compliant.
What Can Startups Do Now?
If your company is just starting out, the idea of full-on sustainability reporting might feel overwhelming. But you don't need to go all in on day one. Here are a few steps to start building a sustainability-aware culture:
- Measure Your Baseline Begin tracking energy use - even for digital resources like cloud computing. AWS, Google Cloud, and Azure all offer emissions dashboards.
- Pick Low-Hanging Fruit Switch to greener cloud regions, optimize code for efficiency, reduce data storage when possible. These changes improve both performance and sustainability.
- Collaborate Across Teams Developers, designers, and product teams all play a role in reducing environmental impact. Efficient design and data flows can make a big difference.
- Be Transparent Early Even if you're not required to report, being transparent about your sustainability journey builds trust and prepares you for future regulations or client expectations.
Takeaway
Sustainability isn't just a legal checkbox - it's becoming a core part of how companies build trust, attract clients, and operate responsibly. As the digital economy continues to grow, so does its footprint. Developers, product managers, and startup teams are now on the frontlines of that transformation.
You don't need to be an expert in climate science to get involved. But understanding the basics of frameworks like SBTI and CSRD, and integrating simple sustainability practices into your workflows, is a smart move for any tech professional.
It's better to start small now than be caught off guard later.