Top 5 ESG trends for 2024

Photo by David Courbit on Unsplash

Despite the growing distrust in the concept, with the regulatory tide backing ESG, it looks like it is here to stay. With that being said, let us have a look at five of the most important trends that will drive the ESG landscape in 2024.

1. ESG is/will slowly make its way into mainstream finance. With the double materiality agenda already pushing the concept of ESG forward over the past few years, the inclusion of disclosure of ESG risks alongside financial risks in financial reports (like the upcoming Climate-related disclosures in SEC reporting in the US, as well as in Singapore) has only cemented the belief that the integration of ESG in mainstream finance is inevitable.
2. Rise in adoption of ESG by Private Companies as Scope 3 disclosures amp up. Up until recently, ESG was more of a box-ticking exercise for private companies but it is not so much the case anymore. Due to more focus on Scope 3 data gathering by public companies, there is increased focus on how their business partners manage their businesses. So, essentially for public companies to make their entire value chain better, they will require all their associate companies to get their affairs in order too.
3. More focus on Biodiversity and Nature- Currently biodiversity-linked funds have an AUM of USD 60 billion where USD 1 billion can be owed to pure-play biodiversity-labeled funds. The…