Amid a turbulent geopolitical landscape, 2024 brings unprecedented challenges and opportunities for businesses navigating Environmental, Social, and Governance (ESG) initiatives. The year marks a moment to take stock of profound shifts towards a new reality – one shaped by several large-scale geopolitical conflicts, economic sanctions, and the ever-present specter of climate-related events. 2023 brought flash floods in Turkey, Europe’s hottest April temperatures ever , and deadly fires in Hawaii – all demonstrating the alarming frequency and severity of climate-induced catastrophes.
But there have also been some positive developments, which have highlighted the power of collective climate action. The US achieved a landmark in record-setting spending on clean energy, and globally, energy production from renewables grew faster than the world's power demand.
Additionally, a long-awaited treaty for the oceans, four decades in the making, added a crucial diplomatic layer to global efforts in preserving marine ecosystems.
So what are we likely to witness when it comes to ESG developments in 2024? And what role will businesses play in the transition to a low-carbon economy?
1. Preparing for CSRD and the Scope 3 spotlight
In response to the Corporate Sustainability Reporting Directive (CSRD), 2024 is set to bring a surge in companies preparing to enhance transparency and accountability in environmental performance. From the financial year 2024 onward, companies listed on an EU-regulated market, with 500 or more employees, and already obliged to comply with the Non-Financial Reporting Directive (NFRD), must adhere to the new regulations, with reporting beginning in 2025.
The focal point shifts to Scope 3 emissions, urging businesses to prioritize robust carbon management practices throughout their entire value chain. Stakeholder pressures, including from investors and consumers, intensify the drive towards sustainability initiatives, positioning companies as responsible corporate citizens.
Sweep resources to support you with CSRD compliance include:
2. Sustainability leadership roles on the rise
With the global focus on sustainability and decarbonization intensifying, Chief Sustainability Officers (CSOs) witness a twofold increase in 2024. These leaders play a crucial role in guiding organizations toward greener practices, demanding a strategic approach beyond carbon accounting – and they need to be equipped with the right guidance and tools to navigate the complexities of the changing regulatory landscape.
Sweep’s resources for sustainability leaders:
3. Sustainable supply chains and the ESG mandate
The ongoing impact of the Ukraine conflict has underscored the vulnerabilities in global supply chains, a challenge that is likely to persist into 2024. Governments and businesses are prioritizing secure, reliable, and high-performing suppliers to enhance control and transparency, enabling better risk management and fostering competitiveness.
2024 is likely to see an intensified focus on supply chain sustainability and resilience. As scrutiny from consumers and investors intensifies, green supply chains will also become a pivotal factor in investment decisions.
Sweep’s resources to support supply chain decarbonization:
4. The power of AI
Artificial Intelligence (AI) will play a vital role in 2024 as companies harness its capabilities in many areas of business transformation, from enhancing customer experience, to improving operational efficiency.
At Sweep, we are harnessing the power of AI in carbon and ESG data collection, to put companies on a faster path to decarbonization. AI can not only be used to streamline the data collection process but it also enhances accuracy, providing real-time insights for informed decision-making amid evolving disclosure requirements.Find out more
The road to sustainable business
So in 2024, businesses face a critical juncture where addressing ESG risks and opportunities becomes imperative for driving resilience and ensuring long-term sustainability. In short, it’s the key to what we call becoming a ‘Forever Company’ at Sweep.
Find out how Sweep can support you at every step of your journey.
