Understanding the importance of ESG reporting and disclosure from a forward-thinking perspective is valuable. Businesses face a significant challenge in accurately assessing and transparently communicating their ESG performance due to the involvement of various stakeholders like rating agencies, index providers, NGOs, and regulators, each with their unique expectations regarding ESG data. To tackle this, efforts are underway to standardize and simplify ESG reporting frameworks. For instance, the ISSB aims to establish a globally recognized standard for companies to divulge sustainability information to investors. This move is driven by the need for consistent, comparable data across companies and markets.

Sustainability needs data, and we need to make data sustainable! ESG demands high-quality and trustworthy data if you don't have a holistic data strategy then I would worry that your reporting is not robust or reliable

Data availability is a perennial issue, especially for further up and down the value chain. For scope 3 data, upstream, suppliers are fatigued by similar although not aligned requests for information. We need to get to a place where standardised data collection is the norm. Once that is a reality, the industry can develop higher quality industry average data based on adequate actuals. Further downstream, the next frontier will be consumer use data. How people interact with products and services and how to orgs measure and account for their full impact.

Emerging trends in ESG & Sustainability indicate a shift towards holistic integration rather than standalone initiatives. Companies increasingly prioritize diversity, equity, & inclusion alongside environmental efforts, acknowledging the interconnectedness of social &environmental issues. Stakeholder capitalism gains traction, emphasizing long-term value creation over short-term profits. Technology, like AI and blockchain, aids in transparent reporting & supply chain traceability, enhancing accountability. Circular economy models gain momentum, promoting resource efficiency & waste reduction. Climate resilience becomes paramount, with businesses adapting strategies to mitigate climate risks & capitalize on opportunities in a changing world.

It's additionally important to consider the emerging role of comprehensive carbon accounting software solutions that help integrate, measure and manage emissions. These innovative tools not only automate data integration but also offer the highest level of transparency,helping address the challenges from upcoming regulations and policy requirements.

Climate Risks and resilience, social justices & equality, transparency & accountability in supply change, stakeholder engagements, diversity & inclusiveness, scope for innovation and creative thinking are some of the relativey newer terms that are now a days gaining traction in boardrooms. These emerging trends indicate a growing recognition of the interconnectedness between environmental, social, and governance factors and long-term business performance and societal well-being.

In my experience, there's a rising reliance on technology, particularly artificial intelligence and blockchain to advance sustainability goals. These technologies optimise processes, enhance supply chain transparency, and enable more efficient resource management. AI, for instance, facilitates predictive analytics for better environmental risk management, while blockchain ensures the traceability and authenticity of sustainable products.

I think that innovation within the realm of ESG leads to the creation of enduring value by fostering sustainable expansion and resilience. Companies that pioneer innovation in ESG are more adept at adjusting to shifts in market conditions, managing risks effectively, and seizing new prospects as they arise. Enterprises that emphasize innovation in ESG are better prepared to excel during the shift towards a more sustainable and equitable economy.

Businesses should prioritize awareness of key steps in integrating ESG and sustainability. This includes conducting a materiality assessment to identify relevant issues, embedding ESG principles into core values, and setting measurable targets aligned with the overall strategy. Clear governance structures, risk management integration, and transparent performance measurement are crucial. Additionally, engaging stakeholders through effective communication fosters accountability and builds trust. Understanding and implementing these steps are essential for businesses to remain competitive, resilient, and responsible in today's dynamic environment.

Implementing serious sustainability strategies often requires a change in the very business model of the companies. The innovations needed to drive this change will be out of their comfort zone and companies have to turn to open innovation programmes to bring in the missing expertise related the new business models (typically material expertise change, servicial models). Open innovation for impact is a trend that is bound to grow to find quick solutions to urgent environmental issues.

Shareholder activism and advocacy organizations are more frequently employing ESG metrics to ensure companies are held responsible for their conduct. By actively involving these stakeholders and addressing their issues upfront, businesses can prevent harm to their reputation and reduce the likelihood of activist campaigns from shareholders. Engaging in ESG conversations and dialogue with their stakeholders is crucial for companies to showcase their dedication to sustainability, foster trust among stakeholders, and foster enduring value. With ESG factors becoming increasingly significant, enterprises that adeptly involve stakeholders in these matters will have a competitive advantage in navigating the changing business environment.

ESG engagement and dialogue are vital for companies as they facilitate a deeper understanding of stakeholders' concerns. Conducting materiality assessments identifies key ESG issues, guiding focused discussions. Engaging through partnerships enables collaborative problem-solving, ensuring mutual benefits and sustainable outcomes. These avenues foster transparency, align corporate values with stakeholder expectations, and build trust. Effective ESG engagement not only addresses material concerns but also strengthens relationships, positioning companies as responsible stewards in a rapidly evolving business landscape.

If you're talking your customer through your decisions there is no shame in these actions (eg. we are aiming to stop using diesel trucks by this date, and why not sooner). An increasing number of shareholders are becoming vocal and informed in environmental issues (as well as customers). These can be seen most recently in actions of protesting shareholders in certain banking and petro-chemical companies that are funding ecological collapse. Ignore this at your peril

Börsennotierte Unternehmen streben klassisch nach Gewinnmaximierung mit der Begründung, ihre Shareholder-Interessen stillen zu müssen. Interessant ist jedoch, dass dabei häufig übersehen wird, dass diese Interessen zunehmend auch der Befriedigung von ESG-Kriterien gelten. Nachhaltigkeit sollte hier also auch als Wirtschaftsfaktor verstanden werden und nicht unterschätzt werden, dass sich sowohl der Markt der Arbeitnehmenden als auch der der Shareholder radikal verändern wird.

Meaningful engagement with stakeholders, including employees, communities, and advocacy groups, is critical for building trust and fostering sustainable relationships. Businesses must prioritize open dialogue, active listening, and collaborative problem-solving to address stakeholder concerns and expectations effectively.

Right now we're experiencing a high level of sustainability-related regulation (in Europe at least). Where regulators just keep throwing new regulations left and right. The downside is that even though the larger businesses have the resources to comply with all the regulations thrown their way, certain smaller businesses may have limited resources to outsource the ESG compliance to specialized consulting firms, and other even smaller companies will navigate through the regulations with the fear of possible sanctions that may compromise their business.

There’s an uptick in litigation centered around diversity, equity, inclusion, and consumer protection related to ESG claims. Companies will need to ramp up guardrails against litigation risks and develop concrete ESG programmes.

ESG regulations, including CBAM, the European anti-deforestation law, California Climate Corporate Data Accountability Act and EU-ETS, are crucial for fostering global sustainability. These frameworks set standards, ensuring corporate accountability and transparency. CBAM tackles carbon leakage, anti-deforestation laws combat environmental degradation, and climate disclosures promote accountability while EU-ETS mitigates carbon emissions. Complying with these regulations not only aligns businesses with responsible practices but also facilitates a collective global effort to address climate change and environmental concerns.

In Brazil, ESG is still far from becoming a reality; however, the megatrend for now is the political regulation of the carbon market. It's a small step, but it demonstrates that the country, which is already well-advanced in various aspects of environmental regulation, is still seeking further development! For Latin American countries, although the environment is important, the initial focus as a trend should be on social rights and well-being, as well as anti-corruption laws, which still plague and cause deaths in our country.

We're experiencing an ever evolving and rapidly changing reporting environment. There's SEC, CSRD, CS3D to name a few. Our clients are definitely feeling more overwhelm at the increasing regulation coming down the line and the upcoming expectations around double materiality and more transparency around supply chain tracing for example. Companies need to navigate this landscape, mitigate any risk of non compliance, accusations of greenwashing and brand reputational damage. It's important organisations understand what's voluntary and what's mandatory, but also begin to future proof by setting the foundations for disclosing information not just around financial risk, but also on the impact you are having on society and the planet too.

Amid the evolving landscape of ESG and sustainability, I firmly believe that enhancing ESG awareness is crucial. Companies should creatively communicate their environmental, social, and governance initiatives to stakeholders. For instance, Apple's innovative approach of sharing their sustainability achievements through an engaging video with Mother Nature exemplifies effective communication strategies in this regard.

To create real change, people need to understand the importance of ESG, and of organisations having an ESG agenda. They need to appreciate the context in which it's being set and why it's important - for the impact on the triple bottom line and for longer term sustainability of people and planet. Within an organisation, leadership needs to be able to communicate the vision and strategy with clarity and make it meaningful to all employees. It needs to become embedded into culture, so ESG becomes a lens through which decisions are made and actions are taken.

The rise of ESG education has been met with both praise and criticism. While many see it as a necessary step towards creating a more sustainable and socially responsible business environment, others argue that it could lead to greenwashing or oversimplification of complex issues. Backlashes may occur due to concerns about ideological bias, lack of standardization, or the prioritization of ESG metrics over traditional financial indicators. However, with proper implementation and transparency, ESG education can play a crucial role in promoting ethical business practices and driving positive change.

Biodiversity loss is becoming a focal point within ESG discussions. The Task Force on Nature-related Financial Disclosures (TNFD) has finalized its disclosure recommendations, which many governments are considering adopting. This shift highlights evolving nature-related dependencies, impacts, risks, and opportunities.

Climate training, education, employee engagement are less and less often being seen as a 'nice to have' addition to a CSO's tool stack. There's a growing recognition that the climate and nature emergency is too complex, distributed and multifaceted to solve top-down. Entire workforces must be activated and green-skilled for company-wide sustainability transformations to succeed. Businesses are increasingly putting this into practice by embedding sustainability throughout the org and unlocking the potential of their whole teams via ESG education and employee engagement.

Usually, I distinguish between “the compliance mindset” and “the value-oriented mindset”. Both C-levels and Boards must have an understanding of the tectonic shifts in the economy as legislation across the world will change how capital is allocated. Already now we are witnessing how APAC, the US, and the EU are developing taxonomies to underline their transformation into more sustainable economies and interestingly, these frameworks are very powerful. Hence, leaders and boards need to be aware of the need for new competencies and world views to gain an economic up site from this agenda.

I've found that fostering ESG leadership and culture is crucial in modern business. ESG leaders embody vision, commitment, and initiative, motivating others. Without strong leadership, a sustainability department may struggle to garner senior management's attention and backing, hindering its effectiveness.

Considerations for sustainable business have to extend beyond what we commonly associate with ESG. I have coined this new abbreviation CHANGE - Climate, Human Rights, AI & Emerging Tech, Nature, Geopolitics, Equality - I think it nicely sums up what currently shapes the world. It's a little mnemonic for leaders who are not, and not meant to be, sustainability experts. Be mindful of CHANGE in terms of risks and opportunities, and keep close to your material sustainability issues.

Two trends that are emerging are actually interrelated: SBTi and Scope 3 emissions. Having got their ESG act in place, over the last 5-6 (or more) years, organisations are realising that without 1) Ambitious Globally relevant goals, they cannot know/ show / grow their commitments. 2) And, Without taking their supply chain partners their sustainability claims seem hollow. Thus the a Science Based Target initiative (SBTi) is gaining traction. And Scope 3 involving the Supply Chain Is seeing a lot of good practices and interest emerging. SBTi is technically very challenging - especially deciding whether absolute or intensity targets are the way to go. Supply Chain requires infusion of finance and technical expertise - a good conundrum

Dos claves imprescindibles: El liderazgo; para guiar las actuaciones en materia ESG, a través de la formación y la pedagogía. La cultura, como resultado de la explicación, y el aprendizaje y el compromiso con los principios orientadores de las políticas sociales, ambientales y de un buen gobierno

There is more of a focus on water as a resource and looking at how companies are using/wasting water, negatively impacting natural water ways, and polluting. This is an important trend because there has been a lot of attention on carbon emissions tracking and targets (Scopes 1-3) which do not include water, now the importance and a focus on water is on the upswing.

Companies need to be careful of 'carbon tunnel vision' and a focus on reporting. Reporting is a means to an end; it is not the end in itself. And ESG is much broader than the current focus on 'net zero' and needs to consider many other areas such as nature, biodiversity, greenchemistry and social impact (to name but a few). The oft most overlooked is commercial risk. Over 50% of Global GDP is at risk due to climate change (source: PwC). Therefore, companies need to evaluate the risks and implement appropriate adaptation strategies to ensure robust sustainable businesses for the future.

New disclosures, reporting standards and frameworks tops the list. Plus new regulatory requirements. With these come new material issues and topics that organisations must implement and report. Recently there has been increased focus on ESG and sustainability in SMEs. Finally customers, consumers, community and employees awareness on ESG and Sustainability is on the rise, hence it will not be business as usual for organisations.

1. Climate action: Pursuing carbon neutrality and renewable energy adoption. 2. Social justice: Prioritizing diversity, equity, and inclusion initiatives. 3. Supply chain transparency: Emphasizing ethical sourcing and labor practices. 4. Data and reporting: Standardizing ESG data reporting for investors and regulators. 5. Sustainable finance: Increasing use of sustainable investing strategies. 6. Regulatory compliance: Adapting to evolving ESG regulations and standards. 7. Technology integration: Leveraging AI, blockchain, and IoT for sustainability. 8. Resilience and adaptation: Building resilience to climate-related risks and enhancing adaptation strategies.

1. Climate action: Pursuing carbon neutrality and ambitious emissions reduction goals. 2. Social justice: Prioritizing diversity, equity, and inclusion within organizations. 3. Circular economy: Embracing waste reduction, reuse, and recycling practices. 4. Supply chain transparency: Ensuring ethical sourcing and labor practices. 5. Stakeholder engagement: Engaging with diverse stakeholders to understand expectations. 6. Ecosystem protection: Committing to preserving and restoring natural ecosystems. 7. Impact measurement: Reporting ESG performance using standardized frameworks. 8. Renewable energy: Transitioning to sustainable energy sources like solar and wind power.