2023 ESG Trends

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?? ?? What helps me wake up everyday is HELPING the INVISIBLE be VISIBLE

1???I am originally from Sudan but based in UK.

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Thats it I think.

?If you want to know what your competitors are doing in the ESG space, what are the best practices to communicate it or what are the regulations that would affect you email us to arrange a call.

?Our Views

ESG 2023 Trends to Watch

When a topic is scrutinised in every aspect of its elements then you should know that its become a mainstream topic and gaining the attention of several stakeholders including the regulators, the investors, the employees, and the customers.

And to be ahead of your peers whether they are your competitors, your fellow Sustainability or Communications directors, you need to keep a close eye on the emerging trends for 2023.

I have read several reports on the trends but the one written by MSCI grabbed my attention.

Here are my top 3 Trends to watch out for:

1) Climate-focused boards help improve emissions trajectories

A recent study found that U.K.-listed companies with better governance practices tended to achieve higher carbon-emissions reduction compared to historic levels and to industry peers.

1. Boards who have members with climate experience will help firms address climate transition risk and reduce real world emissions.
2. Boards that include climate savvy members are better able to build support for emissions targets compared to those that do not.

This is crucial for you to pay attention to if you are part of the HR, Strategy or Compliance team as it will affect your employee policies and performace.

2) Younger Board Members in emerging markets are replacing the older ones in developed markets

?The emerging market is hiring much younger Board members than their counterpart in the developed market. This means:

1. That companies in emerging markets have an edge when harnessing new technologies and pursuing business innovation:
2. Younger directors may enhance a board’s generational diversity and help companies chart a path forward in an increasingly complex and technology-dependent business environment.
3. Boards and their nomination committees will require strong onboarding programs to maximize the contributions of younger directors who are likely to bring fewer years of professional experience and who may be less familiar with the nuances of board work.

This is crucial for you to pay attention to if you are part of the Learning and development, recrutiment and HR?team as it will affect your employee onboarding and performance policies

3)?The global digital landscape will be altered with the new ESG Regulations

?The digital landscape may be seeing its next regulatory realignment, with the

passing in 2022 of the EU’s Digital Markets Act (DMA) and Digital Services Act (DSA) Which takes effect in 2024

1. The DSA specifically targets big tech companies where they will be forced to open their walled-garden ecosystems ( platforms that limit users’ access to competing services), facilitate competitive practices and ensure transparency in their advertising services
2. The DSA has a narrower focus: to manage disinformation and illegal content on consumer-facing platforms.

This is crucial for you to know if you are part of the communication team as it will govern your campaigns and their messages

Views from the top:

What does the CSRD Regulations mean to you as a founder and Dir of Sustainability?

?The EU council has given its final approval for corporate sustainability reporting, the Corporate Sustainability Reporting Directive (CSRD), replacing existing requirements whilst also broadening the arena for sustainability reporting and strengthening them.

The new rules on non-financial disclosure are meant to ensure that there is greater company accountability and that there will be greater common standards on sustainability to help move the EU economies to a more sustainable structure and help the EU reach the goal of net zero emissions by 2050. With these changes, it is notable that the information on a company’s environmental impact and footprint will be available publicly.

For larger companies and those that are listed on the stock exchange, there will be a requirement for more detailed reporting. It is also notable that for international companies operating across the EU that have a turnover of EUR 150 million within any single EU jurisdiction that they must also report, according to these new regulations, their own ESG impact

However, these regulations are still a work-in-progress and further details on the EU plans are expected to be published in 2023. The details of the Directive will be written in a report in January for readers

As it stands, from my own perspective, the metrics which the EU is asking for do seem to be rather bewildering and it is important that there is much greater clarity on the metrics and how they are measured as soon as possible. From my own perspective, having been an investment analyst, I am sure That it will not be easy for non-financial reporting on this new directive to be undertaken by companies accounting division.

For listed, multinational companies particularly that operate in different jurisdictions, their legal, risk / ESG teams will have to be aware of the implementation of the monitoring of the data required. The EU regulations mean that they lead the way in the depth of rules on ESG for listed companies. In the USA, the SEC is lagging on the ESG requirements – and not helped by a very significant push-back from some investors, some key members of the Republican Party and some state legislatures.?

Companies should act now and Communique is ready to help with that process.?

Angus Blair ,

CommUnique Board Advisor and ESG Investment Strategist?

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