EY US Partnered With Watershed for Emissions Reporting
The alliance targets the automation of sustainability data tracking to meet tightening global disclosure requirements.
Updated on Oct. 13, 2026 in Environmental
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EY US has formed a partnership with Watershed to provide an AI-powered enterprise platform for measuring and reporting greenhouse gas emissions. This collaboration combines Watershed’s specialized sustainability software with the advisory and implementation services of EY US.
Why it matters
Companies are currently navigating an increasingly complex regulatory landscape that necessitates precise tracking of greenhouse gas emissions. This alliance aims to streamline compliance by providing a structured toolkit for data collection and reporting.
The platform automates the measurement of scope 1, 2, and 3 emissions, which represent direct, energy-indirect, and value-chain greenhouse gas emissions respectively. The system is designed to handle data collection at an enterprise scale, replacing traditional, fragmented manual reporting.
The players
EY US
A professional services firm providing advisory, implementation, and program management services for corporate operations.
Watershed
An AI-powered sustainability technology provider founded in 2019 that specializes in measuring and reporting greenhouse gas emissions.
The details
The partnership integrates Watershed’s AI-powered software—a platform designed to aggregate and analyze sustainability metrics—with EY US advisory, implementation, and program management capabilities. By centralizing data ingestion, the toolkit enables firms to standardize reporting across complex organizational structures. This end-to-end approach addresses the technical challenges of reconciling disparate datasets required for regulatory filings.
Timeline
Watershed was founded in 2019.
EY US and Watershed announced their new alliance on October 13, 2026.
The Tech Race
The alliance responds to the implementation of rigorous disclosure regimes like California’s SB 253 and Europe’s CSRD regulation. It positions the firms to capture enterprise demand as sustainability reporting shifts from voluntary disclosure to mandatory, automated data submission.
The toolkit is intended for large enterprises currently struggling with the manual data collection required to meet scope 1, 2, and 3 emissions standards. Organizations subject to new disclosure regulations will likely be the first to adopt these automated reporting workflows.
The takeaway
The move reflects a broader trend toward the automation of environmental, social, and governance reporting as regulatory mandates become more stringent. Observers should monitor the subsequent integration of this platform into enterprise financial software to see if it becomes the industry standard.
Further reading
For more context on how regulatory pressures are driving corporate technological adoption, see our section on Environmental.
Source note: This article includes information reported by ESG Today.
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