In this article, we’ll break down what ESRS 1 covers, why it matters, and the key steps businesses need to take to align with its requirements.

The ESRS 1 Requirements

Sustainability reporting has become a critical part of corporate transparency, with businesses facing increasing pressure from regulators, investors, and stakeholders to disclose their environmental and social impacts. In the EU, the Corporate Sustainability Reporting Directive (CSRD) has introduced a new framework to standardize sustainability disclosures, requiring companies to report under the European Sustainability Reporting Standards (ESRS).

At the heart of this framework is ESRS 1, which lays down the fundamental principles that govern all sustainability disclosures under the CSRD. Unlike sector-specific or topical standards, ESRS 1 establishes overarching guidelines for companies, ensuring consistency, reliability, and comparability in sustainability reporting. From double materiality to value chain disclosures, ESRS 1 defines how businesses should assess, structure, and communicate their sustainability-related information.

👉 In this article, we’ll break down what ESRS 1 covers, why it matters, and the key steps businesses need to take to align with its requirements.

The European Sustainability Reporting Standards (ESRS) are the EU’s framework for corporate sustainability reporting under the Corporate Sustainability Reporting Directive (CSRD). These standards aim to bring clarity, consistency, and comparability to how companies disclose their sustainability performance.

ESRS 1 covers general requirements, it serves as the foundation for all ESRS standards, establishing the core principles that companies must follow when preparing their sustainability reports. Unlike the sector-specific or topic-specific ESRS standards (such as those focused on climate change, biodiversity, or social issues), ESRS 1 does not introduce new disclosure requirements. Instead, it provides structural guidance on how companies should approach their reporting obligations, ensuring that all disclosures are comparable, relevant, and meaningful for stakeholders.

ESRS 1 lays out general principles that companies must apply across all aspects of their sustainability reporting. These include:

Double materiality: Companies must assess and disclose sustainability issues that are financially material (impacting their financial performance) and impact material (affecting society or the environment).

Value chain reporting: Businesses must report not only on their own operations but also on their upstream and downstream value chain impacts.

Connectivity with financial reporting: Sustainability disclosures should align with financial reporting, ensuring a clear link between environmental, social, and governance (ESG) factors and a company’s financial health.

Data quality and reliability: Reports must be accurate, verifiable, and balanced, following qualitative characteristics similar to financial statements.

Time horizon for disclosures: Companies must provide both historical data and forward-looking sustainability targets, ensuring transparency about future risks and opportunities.

How ESRS 1 fits into the broader CSRD framework

The CSRD expands the scope and depth of sustainability reporting for EU companies, replacing the Non-Financial Reporting Directive (NFRD). Under the CSRD, thousands more companies - including large, listed, and non-EU firms operating in the EU - are now subject to mandatory sustainability disclosures.

Within this framework, ESRS 1 acts as the universal foundation that applies to all companies, regardless of their industry or specific sustainability focus. Other topical standards (such as ESRS E1 for climate change) and sector-specific standards build upon ESRS 1’s general principles, providing additional guidance for different industries and ESG topics.

By establishing clear and standardized reporting principles, ESRS 1 ensures that sustainability disclosures across companies are consistent, comparable, and useful for investors, regulators, and other stakeholders.

Learn about the EU's new corporate sustainability guidelines: the CSRD and the ESRS. Be ahead of the curve by acquiring what you need to succeed in the new economic transition. 

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What is the ESRS?

As sustainability reporting becomes a core requirement for businesses operating in the EU, ESRS 1 plays a critical role in ensuring transparency, consistency, and reliability in corporate sustainability disclosures. But why does this standard matter, and what impact does it have on companies and stakeholders?

1. Enhancing transparency and accountability

ESRS 1 establishes clear and structured guidelines for sustainability disclosures, preventing companies from selectively reporting on ESG issues. By setting universal reporting principles, it ensures that businesses cannot engage in greenwashing - misrepresenting their sustainability efforts or omitting material impacts.

For investors and stakeholders, this transparency is essential. It allows them to compare companies on a like-for-like basis, assess sustainability risks, and make informed decisions about which businesses align with their financial and ethical priorities.

Under the Corporate Sustainability Reporting Directive (CSRD), thousands of companies - including non-EU firms with significant operations in the EU - are required to disclose sustainability data in accordance with ESRS.

ESRS 1 ensures that all reporting entities follow a standardized framework, making sustainability disclosures comparable across industries and markets. Companies that fail to align with ESRS 1 risk non-compliance, reputational damage, and potential penalties.

3. Aligning with global sustainability reporting standards

The EU’s ESRS framework does not exist in isolation - it is designed to align with other major sustainability reporting standards, such as:

The IFRS ISSB Standards (International Sustainability Standards Board): Used by global financial markets to assess sustainability-related financial risks.

The Global Reporting Initiative (GRI) Standards: Widely used for impact-focused sustainability reporting.

The Task Force on Climate-related Financial Disclosures (TCFD): Focused on climate-related risks and financial implications.

By aligning with these international frameworks, ESRS 1 helps businesses streamline their sustainability reporting and reduce the reporting burden, particularly for multinational corporations that must comply with multiple regulatory regimes.

4. Strengthening investor and market confidence

Investors are increasingly integrating ESG factors into their decision-making processes, with many requiring companies to demonstrate measurable progress on sustainability goals. ESRS 1 provides investors with a clear, structured framework to assess how sustainability issues impact financial performance, helping them allocate capital more effectively.

Beyond investors, banks, insurers, and other financial institutions also use sustainability disclosures to assess climate-related financial risks when determining lending and investment policies. Companies that align with ESRS 1 can benefit from better financing opportunities and lower capital costs.

Sustainability is no longer just about compliance - it is a strategic necessity for businesses looking to future-proof their operations. Companies that integrate ESRS 1 principles into their sustainability strategies can:

Identify and mitigate ESG risks (eg. climate change, supply chain disruptions).

Enhance operational efficiency (eg. energy and resource efficiency improvements).

Strengthen brand reputation and consumer trust.

By adopting a proactive approach to sustainability reporting, businesses can stay ahead of regulatory changes while also improving their long-term financial and environmental performance.

ESRS 1 outlines the general principles and guidelines that companies must follow when preparing their sustainability reports under the Corporate Sustainability Reporting Directive. While it does not introduce specific disclosure obligations, it establishes the fundamental reporting concepts that apply across all ESRS standards. Below are the core ESRS 1 requirements that businesses need to understand and implement.

Double materiality: financial and impact materiality

One of the most significant principles in ESRS 1 is double materiality, which requires companies to assess and disclose sustainability information from two perspectives:

Financial materiality: Information that could affect the company’s financial position, performance, or cash flows.

Impact materiality: Information related to the company’s environmental and social impact, regardless of whether it directly affects financial performance.

This means companies must report on ESG factors even if they do not pose a direct financial risk - as long as they have a significant impact on people or the environment.

“ESRS 1 requires businesses to conduct a materiality assessment, identifying which sustainability issues are relevant based on both financial and impact perspectives. This approach ensures comprehensive and meaningful reporting, helping stakeholders understand a company’s true sustainability footprint.”

ESRS 1 requires companies to assess and disclose sustainability impacts across their entire value chain, not just their own operations. This means businesses must report on both upstream and downstream activities, including:

This requirement poses significant challenges, as companies often lack full visibility into their supply chains. However, ESRS 1 emphasizes that businesses must make reasonable efforts to gather data and disclose any limitations transparently.

To ensure consistency, ESRS 1 aligns sustainability reporting with financial reporting boundaries. This means companies must:

Include subsidiaries and joint ventures within their reporting scope.

Clearly define reporting boundaries, ensuring that ESG data is comparable with financial statements.

Disclose sustainability data at a consolidated group level, mirroring financial reporting consolidation rules.

By following these principles, ESRS 1 ensures that sustainability disclosures are integrated into corporate reporting, making it easier for investors and regulators to assess ESG risks.

Unlike traditional financial reporting, sustainability reporting requires companies to consider long-term risks and opportunities. ESRS 1 mandates that businesses:

Disclose both historical ESG performance and future sustainability targets.

Provide scenario analysis for climate-related risks (aligned with TCFD recommendations).

Explain strategies for achieving sustainability goals, including net-zero commitments and transition plans.

This ensures that sustainability commitments are credible and measurable, rather than vague long-term aspirations.

Connectivity between financial and sustainability reporting

One of the key objectives of ESRS 1 is to bridge the gap between financial and sustainability reporting. This means that companies must:

Ensure ESG risks and opportunities are linked to financial performance.

Integrate sustainability data into financial disclosures, rather than treating it as a separate report.

Use consistent data and assumptions across both financial and non-financial reporting.

If a company discloses climate-related risks under ESRS E1 (Climate Change), those risks should also be reflected in financial statements (eg. asset impairments due to extreme weather events). By enforcing this connectivity, ESRS 1 ensures that sustainability reporting is not just a PR exercise, but a core part of corporate risk management and financial decision-making.

To maintain trust and credibility, ESRS 1 requires companies to ensure data quality and reliability in their sustainability reports. This includes:

Ensuring reports are neutral, complete, and free from bias.

Providing clear explanations of methodologies and assumptions used.

Companies are also encouraged to use external assurance for their sustainability disclosures, similar to financial audits, to enhance stakeholder confidence. By setting high standards for data accuracy and transparency, ESRS 1 strengthens the credibility and usefulness of sustainability reporting.

<table>
  <thead>
    <tr>
      <th>Requirement</th>
      <th>Description</th>
      <th>Why it matters</th>
    </tr>
  </thead>
  <tbody>
    <tr>
      <td>Double materiality</td>
      <td>Assess and disclose both financial materiality (impact on financial performance) and impact materiality (effects on society/environment).</td>
      <td>Ensures comprehensive reporting, capturing all significant ESG issues.</td>
    </tr>
    <tr>
      <td>Value chain reporting</td>
      <td>Report on upstream and downstream impacts, including suppliers, logistics, product use, and end-of-life disposal.</td>
      <td>Encourages transparency beyond direct operations, highlighting full ESG impact.</td>
    </tr>
    <tr>
      <td>Connectivity with financial reporting</td>
      <td>Integrate ESG data with financial statements to show clear links between sustainability risks/opportunities and financial health.</td>
      <td>Bridges sustainability and financial strategies for holistic reporting.</td>
    </tr>
    <tr>
      <td>Forward-looking disclosures</td>
      <td>Provide historical data, future targets, and scenario analysis for sustainability risks and opportunities.</td>
      <td>Helps stakeholders assess long-term plans and credibility of commitments.</td>
    </tr>
    <tr>
      <td>Data quality and reliability</td>
      <td>Ensure ESG data is verifiable, neutral, and aligned with high-quality reporting standards, similar to financial statements.</td>
      <td>Builds trust and credibility among investors and stakeholders.</td>
    </tr>
    <tr>
      <td>Reporting boundaries</td>
      <td>Align ESG reporting with financial boundaries, including subsidiaries and joint ventures.</td>
      <td>Ensures consistency and comparability across all corporate disclosures.</td>
    </tr>
  </tbody>
</table>


While ESRS 1 provides a clear framework for sustainability reporting, many companies face significant challenges when it comes to practical implementation. From navigating complex data collection to aligning with regulatory requirements, compliance with ESRS 1 can be resource-intensive, especially for businesses with global supply chains and diverse operational footprints. 

Here are some of the key challenges companies encounter when implementing ESRS 1.

Conducting a double materiality assessment

One of the most complex requirements under ESRS 1 is the double materiality assessment, which requires companies to evaluate both:

Financial materiality: ESG factors that affect the company’s financial performance.

Impact materiality: The company’s impact on the environment and society.

Determining which ESG issues are material can be highly subjective and varies by sector.

Companies need to engage with stakeholders (investors, regulators, communities) to validate materiality decisions.

The process requires significant internal collaboration across sustainability, finance, risk, and strategy teams.

Failing to properly conduct a double materiality assessment could result in incomplete or non-compliant reports, or even regulatory scrutiny.

 Expanding reporting to the entire value chain

ESRS 1 requires companies to report on their entire value chain, meaning businesses must track sustainability impacts beyond their direct operations. This includes:

Upstream suppliers (raw materials, energy use, labor conditions).

Downstream impacts (product use, recycling, end-of-life disposal).

Many companies lack full transparency over their suppliers and struggle to obtain reliable ESG data from them.

Data collection across global supply chains is often inconsistent, making standardization difficult.

Companies must balance data accuracy with practical feasibility, as some value chain data may not be readily available.

To overcome this challenge, companies need to establish supplier ESG reporting requirements and invest in technology that enhances value chain visibility.

Ensuring high-quality ESG data and avoiding greenwashing

Unlike financial reporting, which follows well-established accounting rules, sustainability reporting under ESRS 1 requires companies to collect and verify ESG data, which is often unstructured, scattered, or estimated.

Companies may struggle to find reliable data sources for ESG metrics like emissions, water usage, and biodiversity impact.

There is a risk of greenwashing if sustainability claims are not backed by verifiable, auditable data.

Ensuring data consistency and comparability across different regions and business units is difficult.

To address this, businesses can implement robust ESG data management systems and consider third-party audits to enhance credibility.

Aligning sustainability and financial reporting

ESRS 1 emphasizes connectivity between sustainability and financial reporting, requiring companies to ensure that ESG factors are linked to financial risks, costs, and strategic decisions.

Many companies lack the internal expertise to properly integrate sustainability metrics into financial reporting frameworks.

ESG risks (eg. climate change, resource scarcity) may have long-term financial implications that are difficult to quantify.

Companies must ensure consistency between their sustainability disclosures and financial statements to avoid contradictions.

Businesses should bridge the gap between finance and sustainability teams by implementing cross-functional ESG reporting processes.

For many companies, particularly small and mid-sized enterprises (SMEs), implementing ESRS 1 comes with significant costs. These may include:

Hiring sustainability experts to oversee ESG reporting.

Investing in software for tracking and verifying ESG data.

Conducting third-party assurance to enhance report credibility.

Implementing new processes for compliance across multiple business units.

Compliance with ESRS 1 requires a long-term commitment - it’s not a one-time exercise.

Businesses must balance cost efficiency with the need for accurate and comprehensive sustainability disclosures.

The regulatory environment is constantly evolving, requiring companies to stay updated on new reporting obligations.

To manage these challenges, businesses should leverage ESG reporting platforms and explore partnerships with sustainability experts to streamline compliance. Companies like Greenly can help streamline the process.  

Navigating uncertainty around future regulatory changes

Although ESRS 1 provides a structured framework, the broader regulatory landscape is still evolving. The EU is working on additional sector-specific ESRS standards, and companies will need to adjust their reporting practices accordingly.

Businesses may need to update their ESG reporting frameworks frequently to comply with new EU guidelines.

There is uncertainty about how ESRS will interact with other global reporting frameworks (eg. IFRS ISSB).

Companies must prepare for future assurance requirements, as the EU plans to introduce mandatory third-party sustainability audits (expected from 2028).

To stay ahead, businesses should build flexible ESG reporting systems that can adapt to future regulatory changes.

Despite these hurdles, companies that proactively implement ESRS 1 can gain a competitive advantage by:

Strengthening investor and stakeholder confidence.

Enhancing brand reputation and consumer trust.

Reducing regulatory and financial risks associated with ESG non-compliance.

Driving long-term business resilience by integrating sustainability into decision-making.

By taking a strategic and proactive approach, businesses can streamline compliance with ESRS 1 while also leveraging sustainability reporting as a tool for growth and value creation.

How companies can prepare for ESRS 1 compliance

Complying with ESRS 1 requires businesses to adopt a structured, proactive approach to sustainability reporting. Given the complexities involved, such as double materiality assessments, value chain transparency, and data verification, companies should begin preparing well in advance to ensure smooth implementation.

Here are some steps businesses can take to align with ESRS 1 requirements.

Conduct a thorough double materiality assessment

Since ESRS 1 mandates a double materiality approach, companies must identify and prioritise both financial and impact materiality factors relevant to their operations.

Establish a cross-functional ESG task force to oversee the assessment.

Engage internal and external stakeholders (investors, customers, regulators) to determine which ESG factors are most relevant.

Use data-driven tools to assess both short-term and long-term ESG risks and opportunities.

Document the methodology used to determine materiality to ensure transparency.

To meet ESRS 1’s value chain reporting requirements, companies must map their supply chains and gather reliable ESG data from suppliers.

Identify key suppliers and request sustainability disclosures from them.

Integrate ESG reporting requirements into supplier contracts.

Use traceability tools and blockchain technology to improve supply chain transparency.

Develop partnerships with third-party data providers to fill in reporting gaps.

Align sustainability reporting with financial reporting

ESRS 1 requires sustainability data to be integrated into financial statements. This means companies must harmonize financial and non-financial disclosures.

Ensure CFOs and sustainability teams collaborate on ESG reporting.

Use the same assumptions and scenarios across both financial and sustainability reports.

Align with global reporting standards (eg. IFRS ISSB) to enhance comparability.

Secure executive buy-in and departmental collaboration

Sustainability reporting under ESRS 1 is not just a compliance exercise, it requires company-wide engagement.

Educate executives and board members on the strategic value of ESRS compliance.

Ensure HR, procurement, and legal teams understand how ESRS 1 affects their functions.

Develop internal ESG policies and training programs to support compliance efforts.

Prepare for third-party assurance and future regulatory changes

As the EU introduces mandatory sustainability audits, companies should prepare for external verification of ESG data.

Establish internal ESG audit procedures to ensure compliance before mandatory audits begin.

Stay updated on future ESRS developments, especially new sector-specific reporting requirements.

Engage with sustainability consultants to navigate regulatory changes.

Invest in ESG data collection and reporting tools

Ensuring data accuracy and reliability is a major challenge under ESRS 1. Companies must establish robust data collection processes to generate verifiable, high-quality ESG disclosures. Without a structured approach, businesses risk inconsistent data, compliance issues, and stakeholder distrust.

Implement ESG data management software to centralize and automate reporting.

Conduct internal ESG audits to verify data accuracy before submitting reports.

Train finance and sustainability teams on ESRS-compliant reporting practices.

Use third-party verification for key sustainability metrics (eg. emissions data).

💡 How Greenly can help: Greenly provides a comprehensive ESG reporting platform that enables companies to track, analyze, and verify their emissions data in alignment with ESRS 1 requirements. By leveraging automated data collection and expert insights, businesses can streamline compliance and ensure audit-ready sustainability disclosures.

Complying with ESRS 1 is a complex but necessary step for companies operating in the EU. By taking a proactive approach - investing in data management, value chain transparency, and stakeholder engagement - businesses can not only meet regulatory requirements but also gain a competitive advantage through enhanced sustainability performance.

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Greenly - The go-to carbon accounting platform for your business!

For businesses navigating ESRS 1 compliance under the Corporate Sustainability Reporting Directive (CSRD), Greenly provides a dedicated CSRD platform designed to simplify reporting, automate data collection, and ensure audit readiness. With a combination of cutting-edge technology and expert guidance, Greenly streamlines the CSRD reporting process, from double materiality assessments to regulatory-compliant report generation.

Discover a Dedicated CSRD Reporting Platform:

Risk Assessment Tool: Map your value chain and assess climate risks using seven key risk indicators.

Consolidated Data Collection: Effortlessly gather environmental, social, and governance (ESG) data.

Task Management & Progress Monitoring: Track reporting progress in real-time across all stakeholders.

Simulation Capabilities: Assess the impact of action plans, risks, and sustainability opportunities.

Audit-Ready Platform: Be fully prepared for regulatory audits with a secure and reliable reporting system.

Automatic Export: Generate reports in XHTML format with XBRL tagging, ensuring seamless regulatory submission.

With Greenly’s specialized CSRD tools, businesses can streamline their ESRS compliance and enhance the credibility of their sustainability disclosures. Get in touch with us today to find out more. 

European Commission, Questions and Answers on the Adoption of European Sustainability Reporting Standards, https://ec.europa.eu/commission/presscorner/detail/en/qanda_23_4043

EFRAG, ANNEX I to Commission Delegated Regulation (EU) 2023/2772 supplementing Directive 2013/34/EU of the European Parliament and of the Council as regards sustainability reporting standards, https://xbrl.efrag.org/e-esrs/esrs-set1-2023.html

In this article, we’ll break down what nitrous oxide is, where it comes from, and how it’s contributing to climate change.

What is Nitrous Oxide (N2O)?

When we talk about climate change, carbon dioxide (CO2) and methane (CH4) tend to dominate the conversation. But there’s another powerful greenhouse gas that’s playing a significant role in global warming - nitrous oxide (N2O). Commonly known as “laughing gas”, nitrous oxide might be most familiar for its use in medicine and food processing, but its environmental impact is far from a laughing matter.

Nitrous oxide has a global warming potential 300 times higher than CO2, and once released, it lingers in the atmosphere for over a century. What’s more, it’s now the largest human-driven contributor to ozone layer depletion - a fact that often goes overlooked in discussions about climate change.

Despite its significant impact, nitrous oxide emissions continue to rise, largely driven by agriculture, industry, and fossil fuel combustion. So, what exactly is nitrous oxide, and why does it matter?

👉 In this article, we’ll break down what nitrous oxide is, where it comes from, and how it’s contributing to climate change. We’ll also explore the key strategies needed to reduce emissions and why tackling all greenhouse gases - not just CO2 - is essential for a sustainable future.

Nitrous oxide (N₂O) is a colorless, non-flammable gas with a slightly sweet odor. While it occurs naturally in the environment, human activities - especially in agriculture and industry - are driving emissions to dangerous levels. Though it makes up a much smaller share of total greenhouse gas emissions than carbon dioxide, its global warming potential is nearly 300 times greater over a 100-year period, making it one of the most potent long-lived greenhouse gases. 

How nitrous oxide compares to other greenhouse gases: 

<table border="1" cellpadding="10">
    <tr>
        <th>Greenhouse gas</th>
        <th>Chemical formula</th>
        <th>Global warming potential (GWP) over 100 years</th>
        <th>Atmospheric lifetime</th>
        <th>Physical properties</th>
        <th>Major sources</th>
    </tr>
    <tr>
        <td>Nitrous oxide (N₂O)</td>
        <td>N₂O</td>
        <td>~300 times CO₂</td>
        <td>~114 years</td>
        <td>Colorless, slightly sweet-smelling gas</td>
        <td>Agriculture, fossil fuel combustion, industrial processes</td>
    </tr>
    <tr>
        <td>Carbon dioxide (CO₂)</td>
        <td>CO₂</td>
        <td>1 (baseline)</td>
        <td>Hundreds to thousands of years</td>
        <td>Colorless, odorless gas</td>
        <td>Burning fossil fuels, deforestation, industrial processes</td>
    </tr>
    <tr>
        <td>Methane (CH₄)</td>
        <td>CH₄</td>
        <td>~28 times CO₂</td>
        <td>~12 years</td>
        <td>Colorless, odorless gas</td>
        <td>Agriculture (livestock digestion, rice paddies), fossil fuel extraction, landfills</td>
    </tr>
</table>



Nitrous oxide plays multiple roles in the environment and human activity. It is best known for its medical applications as an anesthetic, but it is also widely used in food processing (as a propellant for whipped cream), industrial production, and even vehicle engines to enhance combustion. 

However, the real concern is its impact on climate change and the ozone layer. Unlike CO2, which can be absorbed by plants and oceans, nitrous oxide stays in the atmosphere for over a century, trapping heat and contributing to global warming. And unlike methane, which breaks down relatively quickly, nitrous oxide lingers in the upper atmosphere, where it reacts with ozone molecules, further weakening Earth's protective ozone layer.

Given its potency and long-lasting effects, understanding nitrous oxide’s sources and impacts is crucial for climate action.  

Where do nitrous oxide emissions come from?

Nitrous oxide emissions come from both natural and human-made sources. While natural ecosystems - such as wetlands, oceans, and forests - release small amounts of N2O as part of the nitrogen cycle, human activities have dramatically increased atmospheric concentrations over the past century. Today, human-driven emissions far exceed natural sources, with agriculture being the primary contributor.

Agriculture accounts for nearly 70% of global nitrous oxide emissions, making it the biggest driver of N2O-related climate change. The key contributors include:

Synthetic fertilizers: The widespread use of nitrogen-based fertilizers leads to excess nitrogen in the soil. Microbes convert this nitrogen into nitrous oxide through a process called denitrification, releasing it into the atmosphere.

Livestock manure: Animal waste naturally emits nitrous oxide as it decomposes, particularly in large-scale livestock operations where manure is concentrated.

Crop residues: When plant material is left to break down in fields, nitrogen-rich residues can contribute to microbial activity that generates N2O.

Agricultural nitrous oxide emissions have surged in recent decades due to the increasing global demand for food and intensive farming practices. The reliance on nitrogen-based fertilizers, particularly in industrialized agriculture, has created a major climate challenge.

Industrial activities, particularly in the production of nitric acid and adipic acid (used in fertilizers, explosives, and nylon), release large amounts of nitrous oxide as a byproduct. While some industries have adopted emission control technologies, these processes remain a significant source of N₂O pollution.

Burning fossil fuels - particularly in power plants, transport, and industrial facilities - produces nitrous oxide, though at much lower levels than agriculture. Coal-fired power stations, diesel engines, and biomass burning are some of the biggest culprits in this category.

Although human activities dominate nitrous oxide emissions, some N2O is released through natural microbial processes in soils and oceans. However, these emissions have remained relatively stable over time. The real problem lies in the human-driven acceleration of nitrous oxide levels, which has disrupted the natural balance of the nitrogen cycle.

Why are nitrous oxide emissions increasing?

Unlike carbon dioxide emissions, which come largely from fossil fuels, nitrous oxide emissions are closely tied to food production. As global populations grow and demand for food increases, fertilizer use, and livestock production have expanded - leading to a sharp rise in N₂O emissions. Without intervention, these emissions will continue to increase, further intensifying climate change and ozone depletion.

Why is nitrous oxide a problem for the environment?

While nitrous oxide may not receive as much attention as carbon dioxide or methane, its environmental consequences are far-reaching. It is not just a greenhouse gas, it disrupts the balance of our atmosphere, contributes to biodiversity loss, and is a key player in the destabilization of natural nitrogen cycles. Unlike some other emissions that can be absorbed relatively quickly, nitrous oxide lingers for over a century, exerting long-term damage across multiple environmental systems.

Nitrous oxide is part of the nitrogen cycle, a natural process that regulates soil fertility and supports plant growth. However, human activity, particularly industrial agriculture, has overwhelmed this cycle. Synthetic fertilizers, livestock waste, and industrial byproducts have injected excessive nitrogen into ecosystems, accelerating N₂O emissions far beyond natural levels. The consequences of this nitrogen overload are increasingly difficult to ignore:

Nutrient pollution in water bodies: When nitrogen-rich fertilizers run off into rivers and lakes, they create dead zones where oxygen levels plummet, killing fish and marine life.

Soil degradation: Excess nitrogen alters microbial communities in the soil, reducing fertility and making farmland less productive over time.

Disrupting atmospheric chemistry: Beyond its role as a greenhouse gas, nitrous oxide interacts with other atmospheric compounds, contributing to the formation of ground-level ozone - a pollutant that harms human health and ecosystems.

A greenhouse gas that does more than trap heat

IPCC, definition

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