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Abstract concepts have finally begun to take concrete shape in political agendas and corporate strategies: from the growing awareness of climate urgency to the implementation of more stringent regulations, the sustainability landscape has undergone a metamorphosis, outlining new challenges and opportunities for the future.
Regulations and Sustainability: How Things Are Changing with CSRD
A key element of this transformation is represented from the entry into force of Corporate Sustainability Reporting Directive (CSRD), a regulation that has redefined the sustainability reporting obligations for a wide range of European companies, effectively introducing the obligation of the sustainability report for approximately 50.000 companies by 2026.
The CSRD does not only extend the range of entities required to draft this important document, but also introduces higher standards in terms of transparency and detail of the information required, with a particular focus on double materiality, that is, the company's impact on the outside world and vice versa.
This implies for companies the need for a deep strategic adjustment, investing in tools and skills for ESG (Environmental, Social, and Governance) data management and compliance with the new European Sustainability Reporting Standards (ESRS).
The preparation of sustainability reporting, according to the dictates of the CSRD, represents a considerable challenge for companies in all sectors. But it is also a precious opportunity to integrate sustainability into the heart of business processes and communicate their commitment to stakeholders transparently.
From transparency to new professional figures: the evolution of the company in a sustainable world
Sensitivity towards environmental and social issues is constantly increasing among consumers and institutional investors, with the consequence that companies are now required to make their commitment to certain issues known. And if in the past many have implemented opaque communication campaigns, today greenwashing is a real threat to brand reputation.
In fact, 2024 witnessed a growing intolerance towards greenwashing, with consumers increasingly attentive and critical towards of companies' environmental declarations. Companies are therefore called to abandon generic promises of sustainability and to adopt factual language, supported by concrete and verifiable data.
Furthermore, the growing complexity of sustainability issues has led to a strong demand for specialized professionals. The Sustainability Manager,ESG Manager and other sustainability figures have become key resources for companies looking to integrate sustainability into their strategies and operations.
Artificial intelligence has also earned a front row seat, establishing itself as a valuable tool for addressing the complex challenges of sustainability. In particular, in 2024 we witnessed a growing application of AI in areas such as optimizing resource use, improving energy efficiency and managing ESG data.
Sustainability beyond CSRD: Other key trends for 2024
2024 saw the emergence of other important trends in the sustainability field, such as attention towards protection of biodiversity. The growing awareness of the importance of biodiversity for the health of the planet has in fact pushed companies and governments to implement conservation policies and invest in nature-based solutions.
At the same time, there is a strong push from the institutions towards the circular economy. The transition from a linear to a circular economic model, based on the reuse and recycling of resources, has become increasingly central to corporate sustainability strategies. This is thanks to the activation of the much-desired Transition Plan 5.0, which unlocks new resources for companies that invest in reducing consumption and invest to lower the environmental impact of their production.
Even the push towards renewable energy sources has intensified, fueled by the need to reduce dependence on fossil fuels and mitigate the risks associated with the climate crisis. While reducing greenhouse gas emissions and adapting to climate change remain top priorities, with increasing commitments from governments and businesses to meet the goals of the Paris Agreement.
In conclusion we can say that the 2024 marked a point of no return on the path to a sustainable future. Companies are called to embrace sustainability not as a simple regulatory compliance, but as an opportunity to innovate, create value and build a better future. The challenges are complex, but the opportunities that open up are equally significant.
