We are seeing ESG factors becoming increasingly integrated into business strategies and operations.
Some notable trends and considerations that are likely to shape the ESG landscape for companies in the coming years include:
Regulation and Reporting:
The Treasury’s mandatory climate-related financial disclosure rules would apply to the largest Australian companies for the reporting period commencing 1 July 2024 and then expand to smaller companies over the following three years. Now is the time to get your company ready for the new incoming ISSB Standards. This applies to large companies with two of the three thresholds – >500 employees; 1b or more consolidated gross assets and >$500m consolidated revenue.
Sustainability Targets:
Companies continue to set ambitious sustainability goals. Achieving and communicating progress is key, as stakeholders judge them by their commitment fulfillment. Unilever’s recent “down” shift reinforces the importance of tangible results and accountability in sustainability efforts.
Supply Chain Responsibility:
Companies will be expected to extend their ESG commitments throughout their supply chains. Ensuring ethical sourcing, fair labor practices, and minimal environmental impact in the supply chain will be essential.
Green Finance and Investment:
Companies that prioritise ESG will have access to a wider range of green finance options, such as sustainable bonds and loans. Investors are increasingly looking for ESG-aligned investments, which can lead to lower financing costs for responsible companies.
Technology and Data:
Advancements in technology, such as artificial intelligence and big data analytics, will play a significant role in ESG data collection, analysis, and reporting. Companies will need to leverage technology to effectively manage their ESG initiatives.
ESG Integration:
Companies will further integrate ESG considerations into their overall business strategies, risk management, and decision-making processes. ESG will not be viewed as a separate initiative but as a fundamental part of business operations.
In summary,
ESG considerations are becoming increasingly vital for companies of all sizes. As the ESG landscape continues to evolve, businesses that proactively address environmental, social, and governance issues will be better positioned to navigate regulatory changes, attract investors, and meet the expectations of a more socially and environmentally conscious marketplace.
Our ESG division, led by Lisa Tracy (lisatracy@moirgroup.com.au | 0499 009 301), specialises in recruiting for roles ranging from Analysts and ESG Reporting positions to Finance Managers with an ESG focus and Climate Change experts, all the way up to Heads of Sustainability / CSOs. If you have any recruitment needs, we would be delighted to assist you.