Keeping up with ESG - 2024 Wrap-up

Hello reader 👋🏼

This edition read time: 10-12 minutes

Today we cover:

• The regulations that defined 2024

• CSO life: rising salaries, burnout, and AI

• The rise of quiet pragmatism in sustainability

• Scandals, top content, and what we talked about most

• What’s coming in 2025, and more.

With the holiday memory cleanse complete, here’s what you need to carry forward from 2024 into 2025.

2024: The year of regulations

2024 brought a flood of regulatory updates and changes:

• EU Directives: The Corporate Sustainability Due Diligence Directive (CSDDD) is now in force, pushing companies to address social and environmental impacts in their supply chains by 2027. The first CSRD reports are due in early 2025, and the ESG Ratings Regulation will apply from mid-2026.

• California Climate Disclosure Law: Surviving legal challenges, it will force companies to report climate emissions and risks starting in 2026.

But not everything made it through:

• The EUDR is delayed.

• The SEC climate rule faces legal battles and is likely to be withdrawn under the Trump presidency, especially with SEC Chair Gary Gensler stepping down.

For a deeper dive into the regulatory landscape, see the regulatory section below.

CSO: the hardest job of 2024

2024 marked a turning point for the sustainability profession. Reports we referenced throughout the year (one, two, and three) highlighted the evolving role of CSOs: more leaders are reporting directly to CEOs, salaries are rising globally, and sustainability teams are expanding with larger budgets.

But sustainability roles have never been more demanding. Rising regulations, relentless data demands, and pressure from both customers and investors have left 68% of sustainability leaders describing ESG-related tasks as “challenging” or “extremely challenging.” The job now involves balancing conflicting priorities from departments, senior management, and the public — all while burnout rates in the profession hit record highs.

The use of AI also emerged as a defining factor, potentially separating leaders from laggards as teams balance automation with hands-on expertise.

Anti-ESG backlash and quiet pragmatism

2024 brought a political storm to ESG. In the U.S., DEI initiatives were cut, executives were fired, and companies scaled back their climate commitments. Financial institutions quietly exited groups like GFANZ and Climate Action 100+.

But that’s not a full story: what looks like backtracking is often recalibration. Many companies are narrowing their focus, shifting from broad ambitions to sharp, targeted efforts. Most Climate Action and GFANZ members stayed — and doubled down.

In our view, this is a sign of the changing sustainability landscape. Inflation, AI, and geopolitical pressures have forced companies to rethink long-term climate goals. Big promises have given way to quiet, pragmatic progress.

With numbers confirming this view: 45% of Fortune Global 500 firms now have net-zero targets, up from 39% in 2023.  And many are doing so quietly, opting for less public visibility due to increased scrutiny, sustainability cancel culture and political pushback.  And North America is leading, with 79% of firms setting the climate goals.

The hype is fading, and real, value-driven work is taking its place.

Below: our featured graph that was picked up by the major ESG media and gave hope to many.

Unambitious COPs: progress, but far from enough

This year saw biodiversity take a larger role, with a 43% increase in companies reporting metrics to CDP. At COP16 in Cali, Colombia, talks ended without progress on crucial climate finance, though steps were made in Indigenous representation and genetic data management.

COP29 in Baku, Azerbaijan, was equally mixed. A commitment to $300 billion annually in climate finance by 2035 triples previous promises but falls far short of the $1.3 trillion needed.

It’s a step forward — but far from the scale needed.

The biggest sustainability scandal of 2024: SBTi in turmoil

The Science Based Targets initiative (SBTi) faced its biggest controversy yet, with staff calling for the resignation of its CEO and board over governance issues and plans to allow carbon offsets for meeting climate targets. Critics fear this move opens the door to greenwashing and undermines necessary deep cuts in emissions, while proponents argue it could generate much-needed financing for climate mitigation in the Global South.

In the aftermath, CEO Dr. Luiz Amaral announced his resignation, and SBTi released early steps toward a Corporate Net-Zero Standard review in July, accompanied by countless disclaimers emphasising caution and consultation. For now, the standard remains unchanged.

This scandal shows the struggle to balance science with practical solutions for scope 3 emissions. How SBTi adapts by 2025 will decide its role in holding companies accountable.

Your favourite sustainability post

The one that perfectly captures the mood of CSOs in 2024. See the post — and the spot-on comments it inspired — here.

REGULATORY UPDATE

This year — without a doubt — was far more about sustainability compliance than anything else. Here are the regulations that every CSO read, debated, and lost sleep over.

Corporate Sustainability Due Diligence Directive (CSDDD): On July 25, 2024, the EU Council gave final approval to the CSDDD. Large companies must now identify and address negative human rights and environmental impacts within their global supply chains. 

Forced Labour Regulation (FLR): The EU has adopted the FLR, banning products made with forced labour from being sold, available, or exported in/from the Union. This regulation applies to all sectors and companies, regardless of size.

California Climate Disclosure Law: California now requires companies with over $1 billion in annual revenue to disclose Scope 1 and 2 GHG emissions starting in 2026. The deadline for adopting regulations has been pushed to July 2025, but compliance timelines remain unchanged. This law sets a new standard for mandatory climate disclosures in the U.S.

Critical Raw Materials Act (CRMA): Approved on March 18, the CRMA identified essential materials like cobalt and copper and set consumption minimums for EU-sourced and recycled content. Despite its importance, the CRMA comes short of incentivising local production as needed by the industry.

Consolidating ESG Regulations: The EU plans to merge ESG reporting frameworks, including CSRD, EU Taxonomy, and CS3D, into one omnibus regulation. This effort, aligned with the Budapest Declaration, aims to cut reporting burdens by 25%. As we shared in our November update, we fear the creation of yet another regulatory framework instead of simplification. But let’s be hopeful.

…and more:

• China introduced its first corporate sustainability disclosure standards. 

• Australia mandated climate reporting starting in 2025. 

• Hong Kong requires Publicly Accountable Entities (PAEs) to fully adopt ISSB-aligned sustainability standards by 2028. 

• Canada’s Sustainability Standards Board (CSSB) released its first-ever sustainability disclosure standards, CSDS 1 and CSDS 2.

WHAT TO WATCH IN ESG AND CLIMATE IN 2025

Energy crunch and the nuclear comeback

The energy landscape is shifting under the weight of rising global power demands. The International Energy Agency scrapped its forecast for peak coal use, projecting record-breaking consumption until 2027 — driven largely by India and China. Meanwhile, the US faces surging electricity needs, from EVs and heating to data centres and AI, forcing some utilities to lean back on gas and coal power plants.

This strain on the grid is pushing the green transition to its limits — and prompting a nuclear revival. In Europe, concerns over climate change and energy security are reigniting interest in nuclear power. In the US, tech giants are looking at nuclear as a reliable, climate-friendly option.

Expect more headlines about restarting shuttered plants and accelerating the development of next-generation reactors. For the energy transition, nuclear will most likely become the opportunity to watch in 2025.

The Trump effect: climate policy and industrial tensions

Donald Trump’s return to office will reshape US climate and industrial policy in 2025. He already promised to kill offshore wind projects and exit the Paris Agreement, raising questions about the future of US climate commitments.

The Inflation Reduction Act, which prompted the surge in climate tech and industrial innovation, now faces uncertainty. Many startups and clean tech firms are pausing US expansion plans or exploring relocation.

At the same time, Biden’s recent decision to block Nippon Steel’s $14.1 billion bid for US Steel may see new developments under Trump. While Trump previously opposed the deal, given the backlash, a reversal isn’t unlikely. It could reshape industrial priorities, particularly for the critical energy infrastructure that depends on US Steel’s competitiveness.

The Arctic’s strategic importance will also resurface, introducing new debates around its role in climate resilience and geopolitics. And yes, Trump also wants to buy Greenland.

COP30 in Brazil

COP30 will take place in Brazil's Amazon, a symbolic region. Countries will present new greenhouse gas reduction targets (NDCs), but the focus will extend beyond numbers to the quality of these commitments. Agriculture and food systems — underrepresented in past NDCs — must take centre stage, given their critical role in climate action.

Brazil’s central place in the mining and resources sectors adds another layer of importance. With its vast natural wealth, we expect the country to drive the conversation on critical minerals and their role in the energy transition.

And, of course, the eternal COP question remains: Who’s paying for it? With climate finance still falling short of promises, expect intense debates around funding and accountability.

KEY GUIDES FROM OUR EXPERTS

Complete the CDP reporting and improve your scores with the CDP Guide.

Optimise your EcoVadis submission with the EcoVadis Guide.

Avoid supply chain risks with the EU Forced Labour Regulation Guide.

Improve corporate accountability for human rights and environmental impacts with the Corporate Sustainability Due Diligence Directive (CSDDD) Guide.

WHERE TO FIND US NEXT?

Future Minerals Forum 2025
📅 January 14-16 (Riyadh, Saudi Arabia)

Mining Indaba 2025
📅 February 3-6 (Cape Town, South Africa)

This is it for now! Don’t forget to answer the poll question 👇