2. From targets to action
In 2023, we saw a rise in the prominence of forward-looking data. The concept aims to incorporate companies’ signals about their intent to improve their carbon emissions by committing to a target or other aspects of green credentials. This has, however, proven to be elusive, and the link between companies’ disclosure and meaningful action has been shown to be weak, at best.
In 2024, we expect more companies to start disclosing transition plans that translate their commitments into specific objectives and actions aimed at reducing real-economy greenhouse gas (GHG) emissions, thereby providing accountability. Similarly, we also anticipate new datasets and frameworks to emerge that rigorously assess credibility of company targets and plans, as well as concrete actions companies take to achieve net-zero goals.
3. Is biodiversity going to be the next “climate”?
As we continue to grapple with the financial ramifications of nature loss, a significant shift is occurring in regulations pertaining to biodiversity and sustainability. In Europe, nurturing healthy ecosystems has been recognized as one of six critical environmental objectives in the recently established taxonomy. This goal is also reflected in the Sustainable Financial Disclosure Regulation (SFDR), where it’s a mandatory impact indicator.