Sustainability takes centre stage

With the climate crisis constantly worsening, it is becoming impossible to ignore the devastating effects that are: the polar ice caps receding, intense cyclones, flooding, and wildfires across the globe. “Companies are starting to realise the [energy] transition is not going to be smooth, both from a physical point of view, and in terms of the associated economic impacts,” says Heidi Hellmann, director at sustainability consultancy Marakon.

The EU is set to implement major changes in how companies must account for their carbon footprints – requiring a “broader scope and greater detail”, says Kristen Ronn, co-founder and CEO of Normative.

The Corporate Sustainability Reporting Directive (CSRD) coupled with the Corporate Sustainability Due Diligence Directive (CSDDD) obliges companies to perform due diligence on environmental harms throughout their global value chain.

There is increased pressure on companies perceived to be greenwashing as a key area for 2023 – and the crackdown on misleading environmental claims has only intensified. The Advertising Standards Authority (ASA) are set to examine the accuracy of ‘green’ claims about household essentials, they have also released updated guidance in February that ensures a ban for the advertisements without proof their offsets remove carbon from the atmosphere.