Saudi Arabia · Middle East · 2026
Carbon accounting software for companies in Saudi Arabia
Saudi companies face a fast-moving disclosure landscape — the Saudi Exchange (Tadawul) ESG guidelines, the Capital Market Authority's direction of travel towards ISSB-aligned reporting, and the climate ambition of Vision 2030 and the Saudi Green Initiative. CarbonTool gives you an audit-ready Scope 1–3 inventory mapped to the frameworks investors and regulators are converging on, with framework depth, multi-entity consolidation and transparent pricing — self-serve or fully managed.
The short answer
For most companies, sustainability and greenhouse-gas (GHG) reporting in Saudi Arabia is currently voluntary — but the direction is clearly towards mandatory disclosure. There is no general CSRD-style law forcing all Saudi companies to report. The Capital Market Authority (CMA) issued ESG guidance in 2019 and the Saudi Exchange (Tadawul) published ESG Disclosure Guidelines in 2021; both are voluntary. The main exception is binding: under the CMA's 2025 framework for green, social, sustainability and sustainability-linked debt, issuers of those instruments must make ESG-related disclosures. The CMA, Tadawul and Saudi's accounting standard-setter (SOCPA) have all signalled alignment with the ISSB (IFRS S1 and S2) and TCFD as the expected basis for future mandatory reporting. Whether you report voluntarily today or prepare for what's coming, the right move is to build a defensible Scope 1, 2 and 3 inventory now — which is exactly what CarbonTool is built for.
Mandatory sustainability & GHG reporting requirements in Saudi Arabia
Saudi Arabia does not yet have a blanket mandatory sustainability-reporting regime equivalent to the EU's CSRD. Instead, obligations are emerging through the capital-markets regulator, the exchange, the accounting standard-setter and the Kingdom's national climate strategy. Here is the picture as it stands in 2026, and where it is heading.
Tadawul ESG Disclosure Guidelines (voluntary)
The Saudi Exchange published ESG Disclosure Guidelines in 2021, building on the CMA's 2019 guidance. They recommend disclosure of emissions, energy, water, waste, workforce, safety and governance metrics, aligned with GRI, SASB, TCFD and UN SSE principles. They are encouraged, not mandatory, for listed companies.
GCC unified ESG metrics
The GCC Exchange Committee, chaired by the Saudi Exchange, introduced a unified set of 29 ESG metrics (10 environmental, 10 social, 9 governance) in 2023 to improve comparability across Gulf-listed companies. These remain a voluntary disclosure reference rather than a binding requirement.
CMA debt-instrument disclosures (mandatory)
Under the CMA's 2025 framework for green, social, sustainability and sustainability-linked debt, issuers of those instruments must make the relevant ESG disclosures — for example on use of proceeds and impact. This is the clearest binding sustainability-disclosure obligation in the Kingdom today, but it applies only to issuers of such instruments.
ISSB / IFRS S1 & S2 (in development)
Saudi's accounting standard-setter, SOCPA, operates an endorsement model and has been reviewing the ISSB standards. The CMA and Tadawul have signalled ISSB and TCFD as the expected basis for future mandatory reporting. No confirmed Kingdom-wide effective date has been set as of 2026; widely cited estimates point to later this decade.
Vision 2030 & Saudi Green Initiative
The Saudi Green Initiative (launched 2021) targets a 278 MtCO2e annual emissions reduction by 2030, 50% renewable electricity, and net zero by 2060 via a circular-carbon-economy approach. These are national policy targets rather than direct company-level reporting mandates, but they shape the regulatory trajectory and stakeholder expectations.
Strong voluntary momentum
Reporting is rising fast even without a mandate: 94 Tadawul-listed companies published sustainability reports in 2024 (up from 81 in 2023), and roughly two-thirds of the top 100 listed companies by revenue now report on ESG. Many treat early reporting as preparation for the mandatory regime expected to follow.
Who has to report, and on what?
Issuers of green / sustainability-linked debt — mandatory ESG-related disclosures under the CMA's 2025 framework when issuing those instruments.
Tadawul-listed companies — ESG disclosure is encouraged (voluntary) under the 2021 guidelines, with strong investor and index pressure to report — especially larger issuers and those courting international capital.
Large groups with EU operations — may be pulled into the EU CSRD's third-country regime depending on EU turnover and EU subsidiary or branch presence — confirm thresholds and dates with an adviser.
SMEs and private companies — no general mandate, but increasingly asked for emissions data by listed customers, government buyers, lenders and international partners — voluntary VSME-style reporting is the practical answer.
Scope 3 and assurance
Because comprehensive reporting is not yet mandated for most companies, there is currently no across-the-board legal requirement to report Scope 3 (value-chain) emissions or to obtain independent assurance in Saudi Arabia. That changes the moment your company commits to a framework: the Tadawul guidelines and the ISSB standards the Kingdom is moving towards both expect GHG emissions disclosure, and IFRS S2 requires Scope 1, 2 and — subject to relief provisions — Scope 3, typically phased in after Scope 1 and 2. Investors, lenders, large customers and EU-headquartered buyers are also increasingly asking Saudi suppliers for Scope 3 and assured data regardless of the local legal floor.
The SME picture
Saudi Arabia has no domestic equivalent of the EU's voluntary VSME standard for smaller companies. In practice, Saudi SMEs encounter sustainability reporting in two ways: as suppliers being asked for emissions data by larger Tadawul-listed customers, government buyers and international partners; and as businesses positioning for finance, tenders or export markets where ESG credentials matter. A proportionate, voluntary inventory — Scope 1 and 2 first, then spend-based Scope 3 — is the pragmatic starting point, and many Saudi SMEs use the internationally recognised VSME format to answer customer requests cleanly. CarbonTool supports VSME alongside the fuller frameworks, so an SME can start light and scale up as obligations grow.
The cross-border angle: EU CSRD
A point Saudi groups with international operations often miss: the EU's Corporate Sustainability Reporting Directive (CSRD) can reach non-EU parents. A large Saudi group with substantial EU activity can fall within the CSRD's third-country provisions, broadly where the group generates significant net turnover in the EU and has a qualifying EU subsidiary or branch — with reporting expected for financial years from 2028 onwards under the Omnibus-revised timeline. The thresholds and dates are specific and still evolving, so confirm them with an adviser; the practical takeaway is that a single, well-structured GHG inventory now serves both Saudi voluntary reporting and any EU obligation later.
This is general information for 2026, not legal or compliance advice. Saudi Arabia's sustainability and GHG reporting rules are evolving quickly — the CMA, Tadawul and SOCPA are actively developing ISSB-aligned requirements, and timelines, thresholds and assurance expectations may change. Confirm the obligations that apply to your company with a qualified legal, accounting or sustainability adviser before relying on anything here.
How to comply: build an auditable inventory once, report many ways
Whether you are reporting voluntarily on Tadawul today, preparing for ISSB-aligned rules, or answering a customer's data request, the foundation is the same: a complete, defensible greenhouse-gas inventory built on recognised methodology. Spreadsheets rarely survive scrutiny once a figure has to be traced to its source, unit, emission factor and data-quality level — which is precisely where carbon accounting software earns its place.
Define your reporting boundary and scopes
Set the organisational boundary (which entities), then map activities to GHG-Protocol Scope 1 (direct), Scope 2 (purchased energy) and Scope 3 (value chain). For most Saudi companies, energy and Scope 3 procurement dominate the footprint.
Collect activity data and apply emission factors
Bring in fuel, electricity, fleet, travel and supplier-spend data, and convert it to tCO2e using recognised emission factors. Start with what you have — spend-based estimates give a complete first inventory fast — then improve the hotspots.
Build an audit trail on every figure
Record source, unit, factor and data-quality level for each entry so the inventory withstands assurance — essential as Saudi reporting moves towards ISSB-aligned, assured disclosure.
Generate framework-aligned outputs
Produce Tadawul ESG, ISSB, GRI, CDP, VSME or CSRD outputs from the same data, so one inventory satisfies voluntary reporting today and mandatory reporting tomorrow.
CarbonTool is designed for exactly this: build the inventory once, then generate framework-aligned outputs from the same data backbone. See how the carbon accounting and reporting modules fit together.
Why CarbonTool for Saudi Arabia
Carbon accounting is partly a data problem and partly a framework problem. CarbonTool is built to handle both for Saudi companies — from a single Riyadh- or Jeddah-based business reporting voluntarily, to a multi-entity group consolidating across the Kingdom and the wider region:
Framework coverage that matches the trajectory
CSRD, VSME, GRI, CDP, ISSB and PCAF from a single data backbone — so a Saudi company can report voluntarily on Tadawul today and be ready for ISSB-aligned mandatory reporting and any EU CSRD obligation without rebuilding its data.
Multi-entity consolidation
Consolidate emissions across subsidiaries, sites and business units in Saudi Arabia and across the region, with entity-level and group-level views — built for the holding-company and conglomerate structures common in the Kingdom.
Multi-language reporting
Produce reports for boards, regulators and international stakeholders in multiple languages, supporting both local and global audiences.
ERP, procurement & custom integrations
Pull activity and spend data from existing ERP and procurement systems, with custom connectors where needed — no official ERP partnership claimed, just flexible integration to get clean data in without manual re-keying.
Self-serve or done-for-you delivery
Run it yourself, have CarbonTool's team deliver it as a managed service, or white-label it — useful for Saudi advisers and groups that want expert delivery rather than building an in-house reporting function.
Transparent pricing and global reach
Pricing is published and straightforward to budget (in EUR, easily mapped to SAR), with no mandatory sales call. CarbonTool serves companies across Romania, Europe, the UK, the Middle East, Asia and the Americas — global methodology with regional support.
For larger organisations, see our overview of enterprise carbon accounting software, and review transparent pricing before you commit.
A partner for the road to mandatory reporting
Saudi Arabia's disclosure regime is moving from voluntary guidance towards ISSB-aligned requirements, in step with Vision 2030 and the Saudi Green Initiative's net-zero-by-2060 ambition. The companies that fare best are those that start measuring early and build one auditable inventory they can report many ways. CarbonTool pairs broad framework coverage — CSRD, VSME, GRI, CDP, ISSB and PCAF — with multi-entity consolidation, multi-language reporting, ERP and procurement integrations, and a choice of self-serve or fully managed, done-for-you and white-label delivery. With transparent pricing (priced in EUR, straightforward to budget against SAR) and global reach across Romania, Europe, the UK, the Middle East, Asia and the Americas, it gives Saudi companies enterprise-grade depth without an enterprise procurement cycle.
Got more questions?
Can't find what you're looking for? Check the FAQs below, or reach out and we'll get back to you within one business day.
For most companies, no — it is currently voluntary. There is no CSRD-style law requiring all Saudi companies to report. The Saudi Exchange (Tadawul) ESG Disclosure Guidelines (2021) and the CMA's 2019 guidance are encouraged but not mandatory. The clearest binding exception is the CMA's 2025 framework, under which issuers of green, social and sustainability-linked debt must make ESG-related disclosures. The CMA, Tadawul and SOCPA have signalled ISSB/TCFD alignment as the basis for future mandatory reporting, so the direction is towards binding requirements. The EU CSRD can also reach large Saudi groups with significant EU operations.
There is no general legal requirement for all companies. Listed companies are encouraged to disclose ESG metrics under the Tadawul guidelines and the GCC's 29 unified ESG metrics, covering emissions, energy, water, waste, workforce and governance. Issuers of green or sustainability-linked debt must make ESG disclosures under the CMA's 2025 framework. National strategy (Vision 2030, the Saudi Green Initiative, net zero by 2060) shapes expectations but does not itself impose company-level reporting on most businesses. Many companies report voluntarily to ISSB, GRI or CDP to prepare for what is coming.
Not as a general legal requirement today, because comprehensive reporting is not yet mandated for most companies. However, the ISSB standards Saudi Arabia is moving towards (IFRS S2) require Scope 1 and 2 and, subject to relief provisions, Scope 3 — usually phased in after Scope 1 and 2. In practice, listed-company customers, lenders and international partners increasingly ask Saudi suppliers for Scope 3 (value-chain) data regardless of the local legal floor, so building a Scope 3 inventory early is sensible.
There is no confirmed Kingdom-wide deadline for mandatory ISSB-aligned reporting as of 2026 — SOCPA is reviewing the standards and the CMA and Tadawul have signalled alignment without setting a binding date; widely cited estimates point to later this decade. The binding obligation that exists now applies to issuers of green and sustainability-linked debt under the CMA's 2025 framework. Separately, large Saudi groups in scope of the EU CSRD's third-country rules face reporting for financial years from 2028 under the Omnibus-revised timeline. Confirm any dates that affect you with a qualified adviser.
No — there is no general mandate for SMEs or private companies, and Saudi Arabia has no domestic equivalent of the EU's voluntary VSME standard. In practice, Saudi SMEs are increasingly asked for emissions data by larger listed customers, government buyers, lenders and international partners. A proportionate voluntary inventory — Scope 1 and 2 first, then spend-based Scope 3 — answers those requests and positions the business for finance and tenders. Many use the VSME format, which CarbonTool supports alongside fuller frameworks.
For most companies, CarbonTool is a strong choice for Saudi Arabia in 2026. It covers Scope 1, 2 and 3 plus CSRD, VSME, GRI, CDP, ISSB and PCAF from one data backbone, with multi-entity consolidation, multi-language reporting, ERP and procurement integrations, and a choice of self-serve or fully managed and white-label delivery. Pricing is transparent (in EUR, easily budgeted in SAR) and it serves companies across the Middle East and globally — so a Saudi company can report voluntarily on Tadawul today and be ready for ISSB-aligned mandatory reporting and EU CSRD obligations later, without rebuilding its data.
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