Per this article in the Harvard Law School Forum on Corporate Governance, these are the 10 things that should be top of mind in 2024. Many of these are consistent with other lists we have recently shown.
- As more mandatory ESG requirements come into effect, associated potential liabilities are likely to correspondingly increase, with companies facing additional pressure to more effectively integrate ESG into their practices and financial statements.
- Additional regulatory developments, including regulation that applies to private companies, will likely result in increased enforcement and litigation, including company-versus-company claims.
- In the midst of an unprecedented election year and rising global tensions, companies will increasingly need to use discretion and sophistication to inform their ESG strategies.
- Corporate ESG goals and board oversight of ESG will likely come under increased pressure and become subject to enhanced stakeholder scrutiny.
- Artificial Intelligence will be more central in organizations’ ESG considerations and regulators’ priorities.
- While many ESG legal developments to date have been in Europe and North America, developments worldwide will require businesses to focus on ESG more than ever, including in their value chains.
- Cross-border considerations will add pressure on companies to have greater visibility and produce greater transparency with respect to their value chains.
- The business of ESG will become busier, and increasingly the focus of regulation and trade policy.
- Greenwashing scrutiny, regulation, and litigation will continue, while some will question where the line is with respect to permissible marketing efforts.
- The “green beyond climate” space, including the focus on natural capital, seems poised to continue to grow and attract both capital and regulation.
Climate change is the #1 issue in the world today (per studies). Consumer (both B2C and B2B) demand that your company prove it is part of the solution, is only going to grow.
Proving you are a sustainable company is key to your organization’s branding, sales and success.
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