Could 2024 finally be the year we rise to the challenge of climate change? With just six years until 2030, the world is at risk of missing the carbon goals set out in the 2015 Paris Accord. Companies are falling short in their efforts to secure the future of our planet and the ecosystems that sustain both people and our economy.
This year, businesses must step up their game by improving their carbon emissions data and actively reducing emissions across their value chain. This is necessary to keep up with new regulations, market pressures, and competitors. Investors, customers, and regulators are all aware of the risks posed by the transition to a low-carbon economy, and they are demanding real progress from companies.
In 2024, new climate reporting regulations will be implemented. The European Union’s Corporate Sustainability Reporting Directive (CSRD) will require certain companies operating in Europe to disclose their emissions, including Scope 3 (indirect emissions). Similarly, organizations in California will need to start capturing emissions data in 2025 to comply with the state’s climate reporting law in 2026. The US Securities and Exchange Commission (SEC) is also expected to announce ESG reporting requirements in 2024, which will take effect in 2026.
Large corporations will need to gather Scope 3 emissions data from all levels of their value chain to comply with these regulations. This will require collaboration with entities of all sizes, pushing all companies to develop comprehensive carbon management processes.
The Inflation Reduction Act (IRA) in the US is expected to accelerate the transition to a green economy in 2024 by offering tax credits for renewable energy projects. However, infrastructure limitations remain a barrier to scaling renewable energy adoption. Policymakers must take swift action to address this issue.
Sustainability has become a critical aspect of Business success, impacting day-to-day operations. Businesses must consider physical threats from extreme weather, as well as shifts in consumer demands as we move towards a low-carbon economy.
Companies must act urgently and collaboratively to drive impactful change in decarbonization efforts. The year 2024 presents a crucial moment for businesses to set the trajectory towards a sustainable future. Our collective future depends on substantial progress being made in mobilizing the sustainable revolution this year.
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