In Part 1 here, we covered how companies are addressing climate action through net-zero commitments, embracing circular economy practices, and expanding sustainable finance options like green bonds. We also discussed the growing focus on preserving biodiversity, integrating human rights into supply chain transparency, and the overall shift towards more responsible and sustainable business practices.
So what other trends are there to watch out for in 2024 and into the coming year?
Diversity, equity, and inclusion remains a central concern. Pressure is on for companies to expand their DEI efforts and address disparities in the workplace and ensure that all employees have equal opportunities. This includes implementing more robust DEI policies, setting measurable goals, and increasing transparency in reporting diversity metrics.
There is a growing emphasis on the ‘S’ in ESG, with a drive for some companies to further focus on social impact and community engagement. Businesses are recognising the importance of contributing positively to the communities they operate in, whether through philanthropic initiatives, job creation, or local economic development. Social impact is becoming a key differentiator for those organisations looking to build trust and loyalty with their stakeholders.
The drive to meet ESG goals can spur innovation. AI is increasingly being applied to ESG Data analysis, enabling companies to identify trends, assess risks, and generate detailed ESG reports. Meanwhile, IoT sensors are being used in smart buildings to optimise energy efficiency and reduce carbon footprints.
Investor activism is on the rise in 2024, with a global awareness of ESG issues shareholders are increasingly pushing for stronger ESG commitments from the companies they invest in. This influence is driving change, with a demand for better ESG practices, more comprehensive disclosures, and greater accountability.
Finally, and perhaps most importantly, the regulatory landscape for ESG is evolving rapidly with governments around the world introducing new reporting standards and disclosure requirements. Many businesses are in the midst of navigating a complex web of regulations that demand greater transparency in ESG reporting, with some companies investing in technology and expertise to ensure compliance.
The ESG landscape in 2024 is dynamic, and as businesses continue to prioritise sustainability and ethical governance, these trends will continue to play a role in shaping the future of corporate responsibility. Staying on top of these trends is not only important for – especially – meeting regulatory requirements, but also simply for building a resilient and sustainable business for the long term.
We hope you enjoyed this top 10 trends list, and if you think we missed any, drop us a line at info@veriscape.com and let us know.