Sustainability Trends 2024: What Companies Should Know

The 2024 sustainability trends are redefining the global corporate outlook. Companies are at the forefront of unprecedented transformation, pushed by environmental, social and governance (ESG) challenges.

It’s not enough to be a mere observer in this dynamic change. Organisations should adopt an active role, especially with the emergence of revolutionary technology including Climate-Positive technology and artificial intelligence. Added to this is the pressure for more stringent regulations and a growing demand for transparency from stakeholders.

Given this context, 2024 is looking like a decisive year for corporate sustainability. Throughout this article, we will break down the key trends that all companies should have on their radar not only to adapt, but to lead in the ever nearing sustainable future.

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Key Sustainability Trends for 2024

Companies from all over the globe are recalibrating their strategies to align with changing sustainability expectations. These trends not only reflect the evolution of business practices, but also the increasing conscientiousness and demand of consumers, investors and regulators for a more sustainable world.

Furthermore, we will explore these key trends for 2024 that are shaping the future of corporate sustainability and how organisations can optimally position themselves in an evolving landscape.

Climate-Positive Technology

Climate-positive technology represents one of the most promising sustainability initiatives for 2024. Unlike other solutions that simply look to reduce the negative impact on the environment, Climate-Positive technology goes one step further, looking to generate a net positive impact on the climate.

That is to say it’s not just about minimising carbon emissions or reducing resource consumption, but implementing solutions that effectively reverse environmental damage. For example, technologies that capture and store carbon, or that convert CO2 into useful products, are gaining ground in the market.

For companies, adopting a Climate-Positive focus isn’t just beneficial for the planet, but also represents an opportunity for differentiation in increasingly saturated and competitive markets.

Boom in Sustainability Jobs

The increasing commitment of companies to sustainability has triggered a revolution in the labour market. We’re witnessing a significant boom in demand for specialised sustainability professionals.

Beyond the creation of new roles such as CSO, some more traditional roles such as marketing, finance and HR are being rewired to a sustainable focal point, which in turn demonstrates the wide-spanning integration of these principles into all segments of the company.

Beyond the creation of new roles, this boom in sustainability jobs indicates a change in corporate culture. Companies are not only in search of employees with technical abilities, but also those who share sustainable visions and values.

Preparation for CSRD

The Corporate Sustainability Reporting Directive (CSRD) configures the regulatory horizon for companies in 2024. This directive, that increases and re-enforces sustainability reporting obligations, represents a significant change in how companies communicate their ESG practices and results.

CSRD preparation isn’t an easy task. Companies not only need to ensure their compliance with disclosure requirements, but also need to revise, and in many cases, transform their internal processes to gather, verify and present data effectively.

Furthermore, CSRD puts a particular emphasis on “double materiality”, signifying that companies need to consider how their operations impact the environment and society, and vice versa, like how environmental and social factors can affect the viability and profitability of a company. This holistic focus requires a deep and nuanced understanding of the risks and opportunities associated with sustainability.

Mandatory disclosures on the rise

2024 marks a turning point for the field of corporate sustainability, with a significant increase in mandatory disclosures.

Companies can no longer limit themselves to sharing isolated achievements and voluntary initiatives; now they’re faced with the pressure of providing a transparent and complete vision of their sustainability methods and results.

2024 is the “year of compliance”. Actively adapting to these new demands will not only ensure you avoid possible sanctions and reputational risks, but will also place you amongst the organisational leaders in a market evermore conscious and demanding in the face of sustainability.

Greenwashing Under Scrutiny

In 2024, greenwashing isn’t just a focal point for consumers and activists, but is also faced with stricter regulations.

The regulatory authorities are taking energetic measures to counter greenwashing. In regions such as the European Union, they’re establishing new regulations that clearly define what constitutes deceitful publicity in relation to environmental claims (Green Claims Directive). These regulations not only establish clear guidelines, but also impose sanctions on non-compliant companies.

The challenge for companies in 2024 is genuine. It’s no longer enough to “appear” green; companies must demonstrate a commitment to sustainability through concrete actions and verifiable data.

Deeper Integration into Companies Financial Statements

Sustainability, which was once considered as a separate initiative or as a complement to business operations, is experiencing a deeper and more significant integration into the financial core of companies by 2024.

This trend reflects the increasing understanding that sustainability and financial health aren’t mutually exclusive, instead they’re inherently interconnected.

With the increasing demand of climate and ESG related disclosures, finance and sustainability can no longer operate independently. CFO’s and other financial leaders are collaborating closely with sustainability teams to guarantee that financial reports are precisely reflecting the opportunities and risks associated with sustainable practices.

This integration is also promoting evolution in terms of the tools and methodologies used in finance management and accounting. Companies are adopting focus points such as triple bottom-line accounting, which takes into account not only economic benefits but also social and environmental impacts.

Furthermore, sustainability metrics are being incorporated into risk analysis, asset evaluation and other key financial decisions.

The result is a more holistic and robust financial outlook that reflects the complex and multifaceted reality of the modern corporate world. Companies that adopt this depth of integration will be better positioned to make informed decisions, manage risks and make the most of opportunities in a constantly evolving landscape.

Scope 3 Emissions and Supply-Chain Transparency

The sustainability focus has brought companies to more carefully examine both their own operations alongside those of their providers and commercial partners.

Scope 3 emissions, those which exist as a result of indirect activities within the supply-chain, are receiving unprecedented attention.

These emissions frequently overcome, by far, the direct emissions of a company, making them a critical area for carbon reduction initiatives.

However, tackling scope three emissions presents its own challenges, requiring close collaboration with suppliers, many of whom might have less sustainable practices or don’t have the required infrastructure to accurately measure and report emissions.

To face this challenge, companies are investing in technology and platforms that allow them to monitor and manage their supply chain with a heightened level of detail.

They’re establishing sustainable acquisition policies, incentivising suppliers to adopt greener practices and collaborating on initiatives focused on reducing the environmental impact.

Expansion beyond Public Listed Companies

Historically, companies valued on the stock market have been the centre of attention in terms of sustainability, mainly due to the disclosure and transparency demands of investors and regulators.

However, we’re witnessing a significant expansion in sustainability practices beyond these companies, encompassing private companies and small to medium enterprises (SMEs).

The result is a corporate landscape fully inclusive of sustainability, encompassing companies of all sizes and sectors. This collective movement towards more sustainable practices promises significant impacts in the global fight against climate change and other sustainability challenges.

Artificial Intelligence (AI) within Sustainability

Artificial intelligence (AI) is revolutionising numerous sectors, and the sustainability scope isn’t an exception.

As we move ever closer to 2024, AI is becoming a powerful tool that allows companies to address sustainability challenges with efficiency and precision. It can help:

Analyse large quantities of data at great speed: With the help of advanced algorithms, companies can identify patterns in their consumption, optimise processes and anticipate the impact of different sustainability strategies.
Management of climate related risks: AI based tools can anticipate extreme climate events, evaluate the potential impact of business operations and help organisations to prepare and adapt to these eventualities.
Sustainable innovation of products and services: From apps that help consumers make more sustainable shopping choices to automated systems that optimise a building or factories energy efficiency, AI is at the heart of many of the promising solutions relevant to sustainability.

However, it’s essential to tackle AI with an ethical mentality. Whilst companies adopt this technology, they must guarantee responsible use, avoiding biases and guaranteeing data privacy and security.

Sustainability Trends 2024 Conclusion

As we near 2024, it’s clear that sustainability isn’t a secondary option for companies, but an imperative necessity. Emerging trends reflect an evolving corporate world, where responsibility and innovation go hand in hand.

Companies that anticipate and adapt to these tendencies are not only better placed to confront future challenges, but will also be highlighted as leaders in an increasingly demanding and conscientious market.

For those companies looking to lead in sustainability, counting on adequate tools is an essential. You could be at the forefront of data management software with APLANET.

This platform allows you to monitor, analyse and report your sustainability efforts in an efficient and precise manner. Discover how APLANET can transform your sustainable focus by booking a demo here.

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