Summary

The year 2024 brings both challenges and opportunities for businesses navigating social and environmental responsibility. Reflecting on geopolitical turmoil and climate crises in 2023, positive strides in renewable energy and a historic ocean treaty indicate a collective global effort toward sustainability. Key trends for 2024 include heightened corporate transparency under the Corporate Sustainability Reporting Directive (CSRD), a surge in sustainability leadership roles, emphasis on resilient and green supply chains, and the pivotal role of Artificial Intelligence in streamlining decarbonization efforts. As businesses face a critical juncture, prioritizing CSR becomes essential for resilience and long-term viability, marking the path toward becoming a “Forever Company” with Vermena’s support at every stage.

Preparing for CSRD and Scope 3

In response to the Corporate Sustainability Reporting Directive (CSRD), 2024 is expected to witness a surge in companies preparing to enhance the transparency of their non-financial data and internal accountability for environmental performance. Starting from the 2024 reporting period, EU-listed companies with 500 or more employees, already obligated under the Non-Financial Reporting Directive (NFRD), will also have to comply with the new regulation, with reports due from 2025.
Emphasis is placed on Scope 3 emissions, urging companies to prioritize robust carbon management practices throughout their value chain. Stakeholder pressure, including from investors and consumers, is intensifying the momentum towards sustainable initiatives, positioning companies as responsible corporate citizens.

Rise in Sustainability Leadership Roles

As global attention on climate issues and decarbonization grows, the number of Chief Sustainability Officer (CSO) positions is expected to double by the end of 2024. These leaders play a crucial role in guiding their companies toward greener practices, demanding a strategic approach beyond carbon accounting. They need to be well-advised and equipped with tools to navigate the complexities of an evolving regulatory landscape.

Sustainable Supply Chains and the CSR Mandate

The current impact of the Ukraine war has highlighted vulnerabilities in global supply chains, a challenge that will persist in 2024. Governments and businesses are prioritizing suppliers that are secure, reliable, and high-performing to enhance control, transparency, risk management, and competitiveness.
In 2024, attention to sustainability and resilience in supply chains will intensify, with green supply chains becoming a crucial factor in investment decisions.

The Power of AI

Artificial Intelligence (AI) will play a key role in 2024 as businesses leverage its capabilities in various areas of commercial transformation, from improving customer experiences to enhancing operational efficiency.
At Sweep, we harness the power of AI in carbon and CSR data collection, putting businesses on the fastest track to decarbonization. AI not only streamlines data collection but also improves accuracy, providing real-time insights and enabling informed decision-making in the ever-evolving disclosure requirements landscape.

In 2024, businesses face a decisive moment where considering CSR risks and opportunities becomes imperative to strengthen resilience and ensure long-term viability. In short, it is the key to what we at Sweep call becoming a “Forever Company.”

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