ESG regulation: what companies should prepare for in 2024

illuminem summarizes for you the essential news of the day. Read the full piece on Sustainability Magazine or enjoy below:

🗞️ Driving the news: 2024 marks a crucial year in sustainability and ESG compliance, with several impactful regulations taking effect globally
• These include the EU's Corporate Sustainability Reporting Directive, the US SEC's climate disclosure rules, California’s Climate Corporate Data Accountability Act, the Global Plastics Treaty, and the EU Deforestation Law
• These initiatives aim to standardize sustainability reporting and encourage businesses to integrate sustainable practices more deeply

🔭 The context: In response to the environmental challenges faced in 2023, 2024 sees a heightened focus on sustainability
• New regulations target various areas, from emission reporting to deforestation-free products
• This shift represents a broader trend of incorporating ESG not merely as a compliance issue but as a core aspect of business strategy and risk management.

🌍 Why it matters for the planet: These regulations are significant for environmental protection and climate action
• They are designed to mitigate carbon emissions, address plastic pollution, and combat deforestation, contributing to global biodiversity conservation
• By holding companies accountable for their environmental impacts, these measures aim to promote a more sustainable global economy

⏭️ What's next: The future will likely involve companies overhauling their business models to comply with these new standards
• This transition includes more transparent sustainability reporting, efforts towards decarbonization, and an increased focus on nature-positive actions
• The changes are expected to influence not only EU and US companies but also to set new global benchmarks in corporate sustainability

💬 One quote: "To fully respond to CSRD, companies need to consider how implementing requirements extends beyond the immediate compliance exercise and will drive broader changes to strategy, governance, operations and data” (Wim Bartels, Deloitte)

📈 One stat: The EU's CSRD will affect around 50,000 large companies and listed SMEs operating in the EU, requiring them to report on their climate impact

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