New features in Dynamics 365 Business Central introduce initial data structures and functionalities to meet the requirements of the EU’s Carbon Border Adjustment Mechanism (CBAM) and Extended Producer Responsibility (EPR), in addition to processing ESG data.
By integrating CBAM and EPR features, Dynamics 365 Business Central now better supports companies in flexibly adapting to new environmental regulations. This is achieved by ensuring that imported goods comply with EU standards for carbon pricing. In addition, responsibility for product waste is transferred to producers. This reduces environmental impact and compliance risks, supports the EU’s climate goals, and increases competitiveness through regulatory alignment and cost efficiency.
Track your carbon footprint with CBAM
With the support of the Carbon Border Adjustment Mechanism (CBAM), Business Central enables seamless tracking and management of the carbon footprint of imported goods. The system automatically calculates emission costs based on product origin and EU regulations on carbon pricing.
Business Central continuously monitors emission values and compliance status, ensuring that all purchases cover the required carbon adjustments. This reduces regulatory risks and provides transparent visibility into sustainability costs per product and vendor.
Extended producer responsibility
In addition, the extended producer responsibility (EPR) function can now be used to track product materials and apply the correct environmental fees to sales. EPR refers to existing obligations of producers and retailers to take responsibility for their products beyond the point of sale, through to environmentally sound disposal or recycling.
Business Central calculates fees such as collection and recycling based on material composition and weight. Extended product responsibilities apply in particular to goods such as packaging, electrical and electronic equipment, batteries and accumulators, vehicles and end-of-life vehicles, textiles, furniture and mattresses, tires, paints, oils, and chemicals.
With the new feature, extra EPR fields (like for material composition) are available on the item card and sales documents. These tools make it easier to follow local rules, optimize cost calculations, and support sustainable product development and reporting. The new functionalities enable basic use in processes but are not yet fully integrated down to the document level. In the first step, Business Central is focusing on presenting the relevant facts in a structured manner in the database.
