At the last Annual UN Climate Change Conference, there was great progress in the area of ESG reporting.
Key actors in the sector linked to sustainability and ESG reporting presented new initiatives to make corporate reports more transparent accountability tools and drivers of change. These are the 5 notable novelties that COP28 left us with.
1. SBTi calls for action in the value chain
The Science Based Targets Initiative (SBTi), which helps companies set science-based climate targets, encouraged companies to actively engage with their suppliers and address Scope 3 emissions.
This call seeks to encourage more active participation by companies with their suppliers, thus creating a chain reaction for them to establish their own science-based objectives. The ultimate goal is to drive a widespread movement toward decarbonization across the economy.
2. The popularity of ISSB Standards is growing
More than 400 large companies, investors, and institutions from 64 different countries committed to aligning their sustainability reports with the International Sustainability Standards Board (ISSB) Standards.
These standards seek to create a comprehensive global basis for corporate sustainability reporting. Currently, two standards have been published, S1-General Requirements and S2-Climate, both interoperable with the SASB standards. The issuance of social and governance standards is expected in the future.
3. Pressure mounts on net zero targets
Representatives from the Principles for Responsible Investment (PRI), the United Nations Environment Program Finance Initiative (UNEP FI), and International Financial Reporting Standards (IFRS) launched the Net Zero Financial Policy Working Group.
Its mission is to transform net zero ambitions into tangible actions, ensuring the credibility and accountability of net zero emissions commitments aligned by companies, organizations, and other non-state actors.
4. Mandatory sustainability reporting standards for SMEs are on the horizon
From 2024, large European companies will face a new era of sustainability reporting under the newly established Corporate Sustainability Reporting Directive (CSRD).
During COP28, the European Union announced that the next step would be the creation of disclosure standards for small and medium-sized businesses. These standards will help SMEs respond to requests from banks, corporate clients, and other entities for their sustainability information.
5. Incipient regularization of standards and regulations in Latin America
The NCG No. 461 in Chile, which incorporates sustainability and corporate governance issues in the Annual Report of companies, and the recent Sustainability Taxonomy presented in Mexico, are emerging from the global trend towards ESG regulations.
Latin America is taking its first steps in the development of regional standards and regulations on the disclosure of sustainability information, which in some countries is already mandatory.
Max Bensimon
About done!
done! is a strategic sustainability agency with the mission of using creativity to enhance the positive impact of business on the environment and people. Among its services, it offers sustainable brand strategy, double materiality analysis and ESG Reports.
about Max Bensimon
Specialist in reporting, strategy, and creativity oriented to sustainability.
Done Strategy Director with more than 10 years of experience in preparing sustainability reports under international standards such as GRI, SASB, and local regulations.
Graduate in Social Communication from the University of Buenos Aires.
