LOADING

Type to search

Tim Mohin: 2023 in Review and 2024’s Emerging Trends

Tim Mohin: 2023 in Review and 2024’s Emerging Trends

2023 in Review and 2024’s Emerging Trends

And we are back!  Here’s hoping you had a  joyous and restful holiday break.

To kick off the year, we reflect on some of the biggest ESG and Climate News stories from 2023 and forecast the trends for 2024.

2023’s Top 5 ESG and Climate Stories

Hottest Year Ever

Photo Credit: Jadyn Kist/ CNBC

The image for this edition is the “warming stripes” – where each stripe indicates the annual global average temperature. The creator of this image, Ed Hawkins, said, “Another dark red stripe gets added, though I think I need a new color.”

2023 was the hottest year since records began and possibly the warmest in the last 125,000 years. By some accounts, 2023’s global average temperatures breached the 1.5°C goal set in the Paris Accord.

With the increased heat came wildfires in Canada that blanketed North America in an orange-hued toxic smog. Climate-change-fueled weather anomalies in 2023 added up to the most $billion+ disasters the US has ever seen (25 as of December 8th), putting the real-life costs of a warming planet into perspective.


COP28 Recognizes Fossil Fuel Transition

COP 28 Christopher Pike/flickr

Marking a global turning point, COP28 produced a final agreement to transition away from fossil fuels. COP28 also resulted in agreements to reduce methane, fund loss and damage from climate change developing countries, triple renewable energy generation, and a host of other positive deals. However, as with every COP meeting, some were disappointed with what they saw as a lack of progress.


A Flurry of New Regulations and Standards

A host of new regulations and standards in 2023 marked a turning point for global climate and ESG reporting. Here is a rundown of some of the main releases:


The Year of Interoperability

With so many new regulations and standards being released, you would be forgiven for thinking this would make reporting more confusing. Last summer, we dubbed 2023 the “year of interoperability” as nearly all the global reporting standards setters collaborated to make their approaches “interoperable.” Whether these efforts relieved the confusion and reporting burden is yet to be seen.

The ISSB helped clarify the alphabet soup when they took over the Task Force on Climate-Related Financial Disclosure (TCFD) responsibilities in late 2023.  In addition, the CDP questionnaire – used by ~23,000 companies, will now align with the ISSB climate standard.


The ESG Backlash

Source: Facebook/Office of the Governor

2023 was a year where a Republican backlash painted ESG as pushing a “woke agenda.” The backlash saw 18 states led by Florida’s Ron De Santis prohibit state funds from going to ESG-focused investments. The knock-on effect of this was that some companies distanced themselves from using the term, and investments coming into ESG-labeled funds saw a precipitous drop. Despite firms using the ESG term less, it did not stop them from embarking on sustainability initiatives, although more quietly.


Five Things to Expect in 2024

The Year of Implementation

2024 will be the year of implementation. The requirements and deadlines are known, and companies are now in various stages of preparation for compliance. While implementation takes center stage, here are a few policies worth watching:


ESG Backlash Intensifies

REUTERS/David ‘Dee’ Delgado

With 2024 being an election year for over two billion people in 40 countries, ESG has become a hot-button topic for leadership hopefuls to varying degrees around the world. In the US, Republican presidential candidates are amplifying the ESG backlash.

State-level anti-ESG lawsuits are becoming more sophisticated. Late in 2023, Tennessee sued the world’s largest investment firm, BlackRock, for apparently misleading customers by pushing ESG principles across their portfolio. The 73-page lawsuit alleges  BlackRock overstated the financial performance of ESG factors.

There are suggestions that the ESG backlash will even spread to the EU and hamper its sustainability progress.


The Elephant in the Room

Kevin Lamarque/Reuters

The current Republican frontrunner, Donald Trump, promised to gut President Biden’s climate agenda, including the IRA and would reinvest in fossil fuels. US auto companies warned that cutting the IRA could destroy the US EV market.

While immaterial in US politics, a recent Yale study found that 71% of voters, regardless of party allegiance, support the IRA when informed what it is. Not surprisingly, most voters are not aware of the IRA, which is why Biden is putting it at the center of his election campaign. As Bill McKibben said, “Biden still has to win that second term, (or all climate action) will evaporate when Trump (or for that matter Nikki Haley) take over in a year.”


Climate Risks and Greenwashing Scrutiny

Paul Morris/Bloomberg/Getty Images

2024 is set to be just as hot or hotter than 2023. With another El Niño year ahead and 2023 producing the most emissions ever, we can expect a sad litany of climate disasters similar to 2023.

The drumbeat of legal action against companies overstating their ESG credentials will continue in 2024. While the financial service sector led the 70% jump in greenwashing incidents in 2023, these issues can affect any company in any sector.

RELATED ARTICLE: Tim Mohin – COP28: Beginning of the End of the Fossil Fuel Era?


Looking Beyond Climate

Climate will continue to dominate the agenda in 2024, but light will be shed on other issues, such as biodiversity, social matters, and the circular economy. With the release of the TNFD and attempts to give nature and animals legal rights, many believe that 2024 will be the year biodiversity enters the political mainstream. Social issues will get a boost from new regulations. The EU’s new due diligence directive (CSDDD) and the German Supply Chain Due Diligence Act (which will expand in 2024) force companies to identify and mitigate human rights abuses in their supply chains. Other new EU policies, such as the Batteries Rule and the Deforestation Regulation, will reshape how companies design products, source commodities, and produce materials.

This Smart Read article is contributed by Tim Mohin, Global Sustainability Leader, BCG. Every week ESG News delivers smart commentary from ESG practitioners and experts to unpack issues of the week. Submit your ESG Smart Read to editor@esgnews.com

Topics

Related Articles

LOADING

Type to search

Blog

Turkey Sets 2030 Target to Cut Aviation Emissions by 5% Using Sustainable Fuel
Green Climate Fund Approves Record $1.225B for Climate Projects
UK Launches First Onshore Wind Strategy to Double Capacity, Unlock 45,000 Jobs
Phlair, Carbon Removal AS Launch Europe’s First Large-Scale DAC and CO₂ Storage Project
ISSB Launches Major Review of SASB Standards to Strengthen Climate and Industry Alignment
IKEA to Cut 1,400 Tons of Plastic Annually with Paper-Based Fitting Bags
Salesforce Launches Agentforce to Automate Sustainability Disclosures and Unlock Emissions Insights
Terra CO2 Secures $124.5M to Accelerate Commercial Rollout of Low-Carbon Cement Alternatives
Allianz Commercial Launches Climate Risk & Resilience Platform for Businesses
EU Commission Proposes Tax Incentives to Accelerate Clean Industrial Transition
J.P. Morgan’s Kinexys Partners with S&P Global to Pilot Blockchain for Carbon Markets
Mars Achieves 1.9% Emissions Cut in 2024, Unveils $250M Sustainability Investment Fund
GRI Opens Public Consultation on Revised Labor Standards for Inclusion, Equal Opportunity
New Coalition Launches to Tax Premium Flyers for Climate Resilience and Fair Transitions
Dexter Energy Secures €23M to Expand AI-Driven Trading for Renewables and Batteries
88% of Companies See Sustainability as a Long-Term Value Driver, Morgan Stanley Report
Climeworks Secures $162M in Largest Carbon Removal Investment of 2025
Zelestra Expands Sustainability-Linked Loan to €770 Million, Backed by 11 Global Banks
EU Sets 2040 Climate Target with 90% Emissions Reduction
Microsoft Secures 1.1M Tonnes of Carbon Removals in 10-Year Deal with Hafslund Celsio
Google Signs Largest Corporate Fusion Energy Deal with Commonwealth Fusion Systems
Eni, Azimut Next Launch €100M Clean Tech Fund to Accelerate Energy Innovation
CAF Approves $5.2B for Sustainable Development
EU to Integrate Carbon Credits Into 2040 Emissions Target
SP Energy Networks Launches £1.4bn Grid Investment to Accelerate UK’s Clean Power 2030 Goals
ESMA Flags Gaps in Sustainability Disclosures, Calls for Tighter Oversight in Investment Sector
Nokia Secures €1.5B Credit Facility Tied to Scope 1–3 Emissions Reduction Targets
Swiss Climate Disclosure Law Put on Hold as EU Finalizes Sustainability Reforms
EU Commission Confirms Green Claims Directive Not Withdrawn
British Airways Signs SAF Deal with EcoCeres to Cut 400,000 Tons of CO₂ Emissions
EU, EIB Unveil €5 Billion Flexible Guarantee to Unlock Global Green and SME Investments
ESG News Week In Review: 23 June - 29 June
DBS, OCBC, and UOB Launch First Report on Nature-Related Financial Risks
Singapore Business Federation Seeks ISSB Climate Reporting Delay for Smaller Firms
Ambienta Raises €500M to Scale Europe’s Small Cap Sustainability Champions
Wolters Kluwer Launches ESG Tools for CBAM Compliance and Sustainable Financial Planning
Slovenia Raises €1B Through First Sustainability-Linked Bond
Tudor Expands Sustainability Program, Reinforces Ethical Watchmaking Goals
Eni and BMW Italia Join Forces to Advance Sustainable Mobility with Biofuels and EV Charging
Meta Secures Nearly 800 MW in New Clean Energy from Invenergy to Power Data Center Expansion
MERLIN Properties and Carbon2Nature Launch 200-Hectare Forest to Capture 160,000 Tons of CO₂
ByteDance Buys 100,000+ High-Integrity Carbon Credits from Rubicon Carbon
GRI Launches Climate and Energy Reporting Standards Aligned with Global Climate Goals
AIIB and Keppel to Mobilize $1.5B for Sustainable Infrastructure Across Asia-Pacific
UK Releases Draft Sustainability, Climate Reporting Standards Aligned with IFRS
FourTwoThree Launches to Unlock $50 Trillion SME Climate Finance Opportunity
UK Unveils Plan to Become Global Hub for Sustainable Finance, Launches Transition Plan Consultations
UK, Kenya, and Singapore Launch Government Coalition to Boost High-Integrity Carbon Markets
Frontier Secures Deal with Wild Assets for 120,000 Tonnes of Permanent Carbon Removals
Microsoft Signs 12-Year Deal with Agoro Carbon for 2.6 Million Soil Carbon Removal Credits
EU Adopts New State Aid Framework to Accelerate Clean Industrial Development Through 2030
Microsoft Signs 10-Year Deal with Anew Climate, Aurora to Secure 4.8M Forest Carbon Removal Credits
JPMorganChase Secures 50,000 Ton Carbon Removal Deal with 1PointFive
Gap, Target, and Houdini Partner with Syre to Drive Global Shift to Circular Polyester
IFRS Foundation Issues New Guidance on Climate Transition Plan Disclosures
Greenbelt Capital Closes First Fund at $1B to Accelerate Energy Transition
EU Council Pushes Major Cutbacks to Sustainability Reporting and Due Diligence Rules
L’Oréal Launches €100M Innovation Accelerator to Scale Sustainable Beauty Solutions
LEGO Marks Three Years of Near-Zero Waste to Landfill in Global Manufacturing
EFRAG Targets 50% Cut in ESRS Reporting Burden in Progress Update to EU Commission
UK Launches $3.56 B Industrial Plan to Drive Clean Energy
Virgin’s Net-Zero Targets Approved by SBTi, Signaling Bold Climate Commitment
Eni Sells 20% of Plenitude to Ares for $2.3B in Renewables
GRI Launches Machine-Readable Taxonomy to Streamline Global Sustainability Reporting
Cushman & Wakefield: ESG Ranks Among Top 2 Real Estate Priorities in EMEA and APAC
Singapore Releases Draft Guidance to Strengthen Use of Voluntary Carbon Credi
Image of black tesla cars driving in china
videocam
Deep Sky Secures First DAC Offtake Deal with Rubicon Carbon
HPCL to invest $231 million to build 24 compressed biogas plants in India
Carbon Upcycling Secures $18M to Scale Low-Carbon Cement Technology
Coldplay Cuts Vinyl Emissions by 85% with Recycled EcoRecords
La Caisse Sets $400B Climate Investment Target by 2030 Following Strong Decarbonization Gains
Octopus Energy Launches $60M Fund to Accelerate Clean Power Across Africa
Mango Becomes First Brand to Use Circulose® Since Restart
videocam
videocam
Climate Tech Partners Secures $50M+ to Back High-Growth Climate Startups
Volkswagen Bank Raises €1.5 Billion in First-Ever Green Bond to Boost EV Financing
ReGenEarth Launches £100M Green Bond to Scale Biochar Carbon Removal Tech
Eni’s Versalis Unveils Demo Plant for Breakthrough Plastic Recycling Tech ‘Hoop
EPP Rejects EU Green Claims Directive, Urges Full Withdrawal
Rubicon Carbon Launches Rated Carbon Credit Portfolio with AAport Certification from BeZero
TerraPower Secures $650M to Accelerate Advanced Nuclear Deployment
Norway Launches World’s First Full-Scale Carbon Capture and Storage Value Chain
Goldman Sachs Asset Management (GSAM) has launched the Goldman Sachs Emerging Markets Green and Social Bond Active UCITS ETF (GEMS)
Google Maps Expands Sustainable Travel Features Across Europe
Datamaran launches Core Product to Streamline ESG Risk & Reporting
SAP Secures 37,000 Tons of Carbon Removals Through Climeworks Partnership
UN Global Compact Network Appoints Former Meta ESG Head Amanda Gardiner as Executive Director
KKR Acquires Zenith Energy to Expand Off-Grid Renewable Power in Australia
Amazon Becomes First to Use Sustainable Aviation Fuel at Ontario Airport in Neste Deal
IFRS Foundation Launches Free E-Learning Modules to Support ISSB Standards Adoption
UN Global Compact Launches CMO Blueprint for SustainUN Global Compact Launches CMO Blueprint for Sustainable Growth at Cannes Lionsable Growth at Cannes Lions
France Targets Ultra-Fast Fashion with Eco-Tax, Ad Ban, and Transparency Rules
SEC Drops ESG Disclosure and Shareholder Proposal Rules as Regulatory Rollbacks Accelerate
Australia Launches Sustainable Finance Taxonomy to Guide Net Zero Investment
","session_id":"ep-sess-1760545526-C8i2ViAV","page_url":"https:\/\/esgnews.com\/tim-mohin-2023-in-review-and-2024s-emerging-trends\/","post_id":"24518","tracking_enabled":"1","original_referrer":"","has_embedded_content":""}; /* ]]> */