In 2024, a pivotal year poised to reshape the global order, over 3 billion people across approximately 50 countries are set to participate in elections. Organizations must navigate the swiftly evolving global landscape, responding to shifts in political and economic dynamics while ensuring stability in their operational strategies.

7 mega trends that must watched by sustainable leading organizations in 2024. Share them with partners who are also on the road to sustainable development.

1. Sustainability inflation is coming? “stop, look and listen” to avoid blindly falling into the operational trap 

Amid the world economy’s recovery, business organizations face operational uncertainty due to global events likes COVID-19 pandemic, the Ukraine-Russia conflict, Gaza Corridor tensions, the Red Sea crisis, and inflation. The critical question is whether these organizations prioritize sustainable transformation over short-term profits. Balancing financial stability with long-term sustainability is crucial.

                  

Taiwan’s “Climate Change Response Act” incorporates the 2050 net-zero emissions target into law in 2023. The act also mandates a carbon fee starting in 2025. Simultaneously, the European Union’s Corporate Sustainability Reporting Directive (CSRD) become effective on January 1 this year. Governments worldwide are intensifying policies and regulations related to sustainable development. 

Business is adapting by replacing machinery, materials, and recruiting sustainable personnel. These changes, along with cost shifts across supply chains, contribute to the rise of the “sustainability-inflation” era, which is rapidly taking hold and flourishing. 

                 
                 （Laws and regulations in the Asia-Pacific／Source：CY. Chen CSRone）

In 2024, organizations face the critical task of clarifying their strategic positioning. Amidst various uncertainties, they must adopt a “Stop, Look and Listen” approach to review and evaluate their sustainable development strategies. Additionally, they should think beyond immediate concerns and establish resilient and systematic plans for sustainable development, adapting to the rapidly changing global landscape. 

• Stop: When considering global policy promotion for organizational development, assess necessity, harm, and benefits. Avoid blindly chasing a reputation for being first, which may deplete valuable resources. 
• Look: Stay vigilant regarding market trends, industry peers, and relevant issues. Understand how these factors impact your organizations development.  
• Listen: Attentively consider the global market’s expectations and stakeholder perspectives. Then, continuously adapt your business action plans using effective negotiation strategies. 

2. Establish Managerial Sustainability, away from the short-term performance myth. 

Organizations aspire to actively pursue sustainable development goals, but they grapple with the “sustainability paradox” inherent in ESG (Environmental, Social, and Governance) considerations. This paradox arises from the tension between economic, social, and environmental objectives. The challenge lies in balancing short-term operational hurdles with long-term investments in sustainability. Often, management prioritizes immediate problem-solving through temporary measures, inadvertently delaying crucial sustainable initiatives. 

In the context of sustainable development and enterprise transformation, ESG have traditionally been treated as separate and independent aspects. However, in recent years, both government entities and corporate organizations recognize that these three dimensions are intricately interconnected, integrating them into the company’s decision-making process and overall business strategy goes beyond more regulatory compliance. This holistic approach has a profound impact and subtly reshapes the overall operating environment for companies. 

In 2024, I anticipate a significant shift in the sustainability landscape. Organizations will internally prioritize managerial sustainability. The roles of the sustainability office and the sustainability committee will evolve, potentially from a temporary task force or part-time becoming a formal organizational structure. Organizational adjustments will be crucial, with strategies and goals more deeply integrated into daily operations. These efforts will closely align with finance, legal, and business strategy departments. Importantly, this shift will drive corporate organizations to champion sustainable business solutions that foster innovation in products, services, and operations.  

3. Take off “The Emperor’s New Clothes”! we need  true contribution of SDG goals 

Since the introduction of the United Nations Sustainable Development Goals (SDGs), both national governments and organizations have pledged and acted toward sustainable objectives. The period between 2016 and 2020 witnessed peak interest in these goals. However, “The Sustainable Development Goals Report 2023: Special Edition”, was published by the global pursuit of sustainable development. Shockingly. 48% of the goals show no real progress, and only 15% are on the right track.

              
              （Source：The Sustainable Development Goals Report 2023: Special Edition）

The way we perceive challenges significantly influences our mindset. Despite evidence indicating that many sustainable development goals are lagging and falling short of expectations, approximately 63% of these global goals are deemed to be “fair progress, but acceleration needed”. This progress is noteworthy, given that achieving these goals necessitates consensus across national governments, businesses, and individuals. Maintaining a relatively optimistic outlook while tackling this formidable endeavor is crucial. The challenge lies in navigating the difficulty threshold. 

The United Nations Sustainable Development Goals (SDGs) represent the world’s collective response, due by 2030, to address critical global challenges. As we reach the midpoint of this ambitious agenda, regional alliances, and governments for achieving the SDGs. Their aim is to prevent organizations form falling into the trap of “The Emperor’s New Clothes,” where superficial efforts mask true progress. Instead, they emphasize the vital role of business organizations in advancing the SDGs. 

To avoid more “SDG washing,” where organizations engage in performative action without substantial impact, a strategic, structural, and holistic approach to sustainable development transformation is essential. This approach, implemented at the organizational level, will be the linchpin for accelerating SDGs progress in 2024. By aligning business practices with the SDGs, we can move beyond rhetoric and drive meaningful change toward a more sustainable future. 

4. Era of global boiling–Accelerate the shift from Net Zero to the solution agenda. 

In July 2023, the world witnessed an alarming milestone: it became the hottest month on record globally. United Nations Secretary-General Antonio Guterres officially declared that we have transitioned from the era of global warming to the era of global boiling. This dire warning underscores the severity of the climate crisis we face. 

The evidence is compelling: acute physical climate risks are now a reality. These risks include powerful typhoons, torrential rainfall, scorching heat waves, and devastating forest wildfires. The planet has reached a critical juncture, approaching the tipping point in terms of global warming. 



The aftermath of COP28, which emphasized need to “Transition Away” form fossil fuels and accelerate renewable energy development for a just transition, has had notable effects. Academic institutions and business organizations now recognize the inextricable link between climate and social operating systems. This awareness has elevated discussions beyond more climate action, extending to broader considerations of natural biology and social capital. 

In 2024, numerous corporate entities have recognized a fundamental shift in their role: they have evolved from “regulated emitters” to “proactive providers of climate solutions”. Beyond merely reacting to international and national net-zero objectives, these organizations are now actively crafting transition plans and implementing a more robust “Solution Agenda”. They aim to align with a sustainable vision that involves decarbonizing the entire value chain. 

5. Time to pay attention to the “S” in ESG! Focus on “Justice” in the social influence.

In previous times, the “Social (S)” aspect within the “ESG” framework has consistently lingered in the background compared to the more prominent “Environmental (E)” topic. The challenge arises from the intricate and multifaceted nature of societal concerns, making it difficult to precisely measure their impact and effects. Social changes and their consequences often necessitate a longer gestation period. 

Considering the possibility of economic growth stagnation following the pandemic, the social (S) topic has gained prominence as a critical focus for government entities and business organizations. In response entities must delve deeper into the multifaceted aspects encapsulated by the term “Justice (J)”, including considerations related to climate, transformation, race and gender. By addressing the needs articulated by relevant stakeholders, managing potential conflicts, and proactively fostering Diversity, Equity, and Inclusion (DEI) throughout the entire value chain from upstream to downstream, organizations can ensure the comprehensive well-being and protection of human rights for employees, suppliers/contractors, external consultants, and other stakeholders across all facets of life. 

6. Carefully to going green on marketing! Gen Z recognizes the actual actions more.

In the wake of three years marked by severe economic stagnation, the global capital market now grapples with the challenges of post-pandemic economic recovery. The luminous “sustainable” North Star has undeniably spurred the capital market to intensify its pursuit of “green business”. Whether at the micro level, where new dietary trends and everyday essentials emerge or at the macro level, encompassing international education programs and stock market investment funds, all these facets have become infused with the aura of “sustainability” and ESG considerations. These terms have successfully permeated the market discourse. 

However, the frequent use of “sustainability-like” buzzwords, such as sustainability, ESG, SDGs, and carbon neutrality, has led to a gradual blurring of their definitions. People now harbor doubts and skepticism, labeling them as “purposeful marketing” tactics that contribute to “climate anxiety”. The challenge lies in reclaiming clarity and authenticity for these critical concepts. 

In response to market turbulence, governments worldwide have taken significant steps to combat “greenwashing”, the deceptive practice of presenting products or services as environmentally friendly when they are not. In 2023m the EU introduced the “Green Claims Directive”, proposing fines 4% of annual gross income for greenwashing offenders. Simultaneously, the UK’s Financial Conduct Authority (FCA) issued strict regulations regarding “sustainability” claims on product labels. These measures aim to enhance market transparency and restore consumer trust in products labelled as “sustainable”. 

In SBTi Monitoring Report 2022, the Science Based Targets Initiative (SBTi) highlighted a significant development. After rigorous scrutiny, 121 corporate/organizations were stripped of their membership in science-based carbon reduction targets. This decisive actions by SBTi unequivocally conveys the message of rejecting greenwashing and superficial efforts. Importantly, it serves as an impetus for corporate entities to take substantive management actions in addressing the urgent climate crisis. 


                                                              （Source：SBTi）

In light of robust regulatory and review mechanisms, can we truly break free from the cycle of cliches and overused words? Unfortunately, short-term observations reveal that many companies and brands are merely repackaging their messaging with terms like “green” to reinterpret sustainability. 

By 2024, Generation Z’s full-time workforce will surpass that of the Baby boomers for the first time. Organizations must heed the alarm bells: Gen Z claims and superficial statements won’t suffice. Instead, brands must reimagine their messages and prioritize genuine product information disclosures over celebratory slogans. Let’s move beyond empty words and embrace substantive action. 

7. Hale end to ‘alphabet soup’ of sustainability disclosure! GRI, ISSB, and CSRD will be the three main reporting standards. 

The year 2023 marked a significant turning point in the landscape of sustainability information disclosure frameworks. Notably, the Global Reporting Initiative (GRI), International Sustainability Standards Board (ISSB), and Corporate Sustainability Reporting Directive (CSRD) played pivotal roles in this transformation. Their collective effort ushered in a new era of streamlined and standardized reporting. 


                                                     （Source：CY. Chen CSRone）

Although the sustainable information disclosure framework currently adopted by the mainstream has different stakeholders in its application and communication, three major common points can still be seen:

• Multi-dimensional assessment of materiality
  ISSB framework takes investors into the core reporting, so it gives priority to encouraging organizations to consider “Financial Materiality” to identify; the GRI and CSRD focus on “Financial and Social” impact, as double materiality.  
• Scope 3 disclosure
  Organization are increasingly recognizing the importance of extending their social responsibilities beyond their immediate operations to encompass the entire value chain. This shift is evident in the growing emphasis by governments worldwide on implementing regulations that move companies from voluntary disclosure to mandatory compliance in managing greenhouse gas emissions across the Scope 1, Scope 2, and Scope 3. 
• Data quality
  In any sustainability disclosure reporting framework, it is advisable for organization to provide third-party verification or certification statements for their reported data or content. This practice enhances the credibility and quality of the information through review by independent third parties. 

In the context of global development trends, the fervor of sustainable transformation within organizations will persist in 2024. It is anticipated that these organizations will challenge established operational norms and traditional models from the past decade in the coming 12 months. Rather than merely conforming to prevailing norms and trends, sustainable development emphasizes identifying operational advantages. To achieve more comprehensive management, corporate entities should extend their focus beyond carbon-related aspects, proactively prepare for heightened oversight, and expedite sustainable transformation as an integral part of their operational strategies. 

Sub-editing: SC. (Tracy) Ni / Assistant Manager, CSRone

 

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資料來源：CSRone永續智庫團隊
圖片來源：unsplash

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