Some sustainability challenges in 2024

We can start with the interoperability between all the regulations that have been published and/or will soon enter into force, which undoubtedly represents a challenge for the sustainability areas of companies that have to operate under many of these standards and guidelines. For example, in terms of reference frameworks, this year we got an update to the UN Global Compact’s Progress Reporting Policy (COP) (the largest corporate sustainability initiative globally), and to the OECD Guidelines for Multinational Enterprises. Companies on responsible business conduct, which guides the actions of the business sector in this regard through a series of principles and recommendations.

In addition, the International Financial Reporting Standards Foundation (International standards for financial reporting) introduced its first two standards (IFRS S1 and S2) that were previously developed International Sustainability Standards Council (ISSB), which aims to serve as a basis for sustainability reporting from a global financial perspective; For its part, the European Commission adopted the first set of 12 European Sustainability Reporting Standards (NEIS), to determine the information that European companies must disclose about their impacts, risks and opportunities regarding ESG issues, according to the European Union. Corporate Sustainability Reporting Directive (CSRD). Complementarily, Task Force on Nature-Related Financial Disclosures TNFD has provided its disclosure recommendations and guidance for organizations to report on and act on emerging nature-related dependencies, impacts, risks and opportunities.

Faced with this wave of new standards, added to those that already existed at the international and national levels, the organizations behind them began to sign memorandums of understanding and cooperation agreements to facilitate interoperability among them, as well as their harmonization in many cases. By 2024, the first instances of organizations applying it in an integrated way as part of their reporting processes will begin to emerge, and different tools and publications will certainly emerge to guide them in this process.

It is also expected, partly influenced by the above, that there will be greater innovation and adoption of sustainability-related technology by companies, but not just for measurement and reporting, but also for the sustainable management of the entire business, starting, for example, with the use of artificial intelligence to identify risks. environmental, social and governance impacts and opportunities, building scenarios and facilitating decision-making that allow better planning and implementation of actions in this regard, as well as important progress in traceability, transparency and ensuring sustainability throughout value chains through the application of blockchain. Along these lines, corporate social innovation is beginning to be seen as a trend in various sectors to promote the development of new products, services, processes or even business models that are more sustainable, in addition to being profitable.

(tags for translation)Some Sustainability Challenges in 2024

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