5 ESG trends to watch in 2024

1. Net-zero transitions: more countries are committing to net-zero emissions by 2050 which will increase the pressure on companies to set climate target and start/continue their process of decarbonising their operations. A closer scrutiny will be put on their own supply chain too. A transition plan is a good way to ensure practical and achievable step-by-step results.

2. Circular economy shifts: the circular economy aims to eliminate waste by making products from recycled materials and ensuring they can be reused or recycled after use. Businesses will be expected to reduce single-use plastics and rethink product design and packaging for sustainability. It also create an opportunity for business to develop innovative and new products to enter the market.

3. Diversity disclosures: stakeholders, employees and investors are seeking more transparency around workforce diversity data, pay equity across gender/race, and inclusion best practices. By having a robust DE&I policy in place can boost public trust and help attract top talent as well as making business sense all around.

4. Human rights due diligence: conducting due diligence to prevent human rights abuses deeper in supply chains is becoming more important. The risks of child labor, unsafe working conditions and other ethical issues among overseas suppliers and contractors will harm your business reputation and operations.  

5. ESG reporting standards: As sustainability reporting grows, expect new standards aimed at harmonising the disclosures and reduce greenwashing. Comparable high-quality data is essential to show how serious your business is in disclosing ESG practices.

Keeping on top of of these rising ESG trends impacting businesses of all sizes can be overwhelming, but applying the right procedures can also boost your business.