In recent years, the topic of ESG (Environmental, Social and Governance) has evolved from a trend to a strategic priority for companies globally. In 2024, we saw significant progress, with regulatory changes and more robust practices being implemented in preparation for the 2025 requirements.
The evolution of ESG in 2024
First trimester: Review of global guidelines
From January to March, important updates were made to the guidelines of the Global Reporting Initiative (GRI) and the Sustainability Accounting Standards Board (SASB). These changes included detailed new metrics for monitoring carbon emissions, diversity, and other critical indicators. Companies took advantage of this period to review their internal policies and align goals with market expectations.
Second Quarter: Tax Incentives and Reinforced Governance
Between April and June, governments, including Brazil, offered tax incentives for sustainable practices, such as the circular economy and energy efficiency. This motivated many organizations to form committees dedicated to ESG, adopting specific goals, such as expanding diversity in leadership positions and improving energy efficiency.
Third trimester: Social and Environmental Responsibility
From July to September, the focus was on expanding diversity, inclusion, and equality initiatives. Supply chains underwent rigorous audits to ensure compliance with human rights and sustainability standards, reinforcing companies' social and environmental commitment.
Fourth quarter: Intensified preparation for 2025
In the last months of 2024, companies intensified internal and external audits, adjusted targets, and released preliminary impact reports. ESG ceased to be an isolated project to be integrated into long-term strategic planning.
How to prepare your company for 2025?
With the compliance deadline approaching, it's essential that your company adopt a structured approach to integrating ESG practices. Below, we highlight six key steps:
1. Strengthen ESG governance: Create a dedicated structure, with a committee that includes senior management members and experts. This group will be responsible for monitoring progress and aligning ESG practices with the company's strategic objectives.
2. Perform a materiality assessment: Identify the ESG topics most relevant to your business and stakeholders. Prioritize actions that have the greatest impact, such as reducing emissions or promoting diversity, and establish concrete goals.
3. Organize data collection: Implement technological tools to monitor and collect data in an automated manner, such as systems for measuring carbon emissions. Accurate and reliable data is essential to meet regulatory requirements.
4. Set clear goals: Set specific goals, such as reducing emissions by 30% by 2030 or achieving 100% renewable energy use by 2025. This demonstrates commitment to ESG and makes it easier to measure progress.
5. Prioritize transparency: High-quality and transparent reports reinforce credibility. Adopt recognized standards, such as the GRI and SASB, and submit reports to external auditing to strengthen the trust of stakeholders.
6. Engage employees and partners: Promote an ESG culture across the organization. Empower employees and involve business partners in the process to increase adherence to sustainable practices.
Why invest in ESG now?
Adopting ESG practices isn't just about complying with legal requirements; it's an opportunity to create value. Investments in sustainability attract investors, strengthen the brand image and can generate savings in the medium and long term. Companies that lead the ESG movement stand out in the market and contribute to a fairer and more sustainable future.
The ESG journey in 2024 paves the way for a 2025 that is more aligned with global demands. Companies that anticipate their preparation will be better positioned to meet the expectations of stakeholders and take advantage of sustainable market opportunities.
If you still have questions or need support, our team is ready to help with customized solutions in the areas of auditing, accounting, taxes, consulting and much more. Get in touch at Www.taticca.com.br or by e-mail taticca@taticca.com.br and learn how we can support your ESG journey.
