Sustainability Insider December 2024

Updates from Sustainability Knowledge Group

1. Among the Top Sustainability Consulting Firms in the Middle East 2024

Sustainability Knowledge Group has been recognised for the 3rd consequent year among the leading consulting firms in the Middle East for Sustainability services. Being among the region’s most trusted, expert and influential consultancy firms in the domain for the year 2024, means a bigger responsibility toward our customers and partners.

Over 1,000 consulting firms were assessed, based on the views of clients and consultants and an extensive capabilities assessment on areas such as Sustainability expertise, company reputation, industry recognitions, benchmarks, thought leadership, and more.

?2. Sustainability Knowledge Group at the 3rd Cyprus ESG Forum

Sustainability Knowledge Group proudly participated in the 3rd Cyprus ESG Forum, organized by BOUSSIAS CYPRUS in Nicosia. The event, titled “Sustainability: Today’s Commitment for a Better Tomorrow,” emphasized integrating sustainability into business strategies and empowering companies on the path to a sustainable future. Our Director, Aglaia Ntili, was honored to contribute as a speaker, sharing insights on advancing ESG practices. Her presentation “What everyone is asking about ESG and what you need to know” tackled ESG and Sustainability questions that are in everyone’s mind. The forum provided a pivotal platform for exchanging ideas and strengthening corporate commitments to sustainability, aligning with our mission to support organizations in their sustainability journey.

3. A Heartfelt Thank You for an Incredible Year

As 2024 comes to a close, we at Sustainability Knowledge Group would like to extend our deepest gratitude to our clients, partners, and collaborators. This year has been one of remarkable milestones, enriched with impactful trainings, seminars, forums, and consulting projects. Together, we navigated evolving regulatory frameworks and embraced exciting challenges, driving sustainability forward. Your continuous trust and collaboration have been the cornerstone of our success. Thank you for being an integral part of our journey. Here's to building a more sustainable future together and to many more exciting years ahead! Warm wishes for the holiday season and 2025!

Sustainability News at a Glance

1. EFRAG Launches Voluntary Sustainability Reporting Standard for Non-Listed SMEs

On December 17, 2024, the European Financial Reporting Advisory Group (EFRAG) released the Voluntary Sustainability Reporting Standard for non-listed SMEs (VSME). Developed at the European Commission's request, the VSME offers a standardized framework for non-listed micro, small, and medium-sized enterprises to report sustainability information. Following a public consultation from January to May 2024, EFRAG incorporated stakeholder feedback to simplify the standard. The VSME comprises a Basic Module and a Comprehensive Module, aiming to replace diverse ESG questionnaires with a standardized set of indicators. EFRAG plans to support the VSME's adoption through digital tools, guidance, and educational materials in 2025.

2. EU Delays Deforestation Ban Implementation by One Year

The European Union has postponed the enforcement of its anti-deforestation regulation by one year, now set to commence on December 30, 2025. This decision follows concerns from various stakeholders, including EU and non-EU countries, about preparedness for the stringent requirements. The regulation aims to eliminate products linked to deforestation, such as cattle, cocoa, coffee, palm oil, soy, and wood, from the EU market. Proposed amendments to introduce a "no risk" category, which would have reduced checks for certain countries, were rejected. Large operators must comply by the new date, with small enterprises granted an additional six months.

3. Hong Kong to Implement IFRS-Aligned Sustainability Reporting in 2025

The Hong Kong government has unveiled its Roadmap on Sustainability Disclosure, mandating IFRS-aligned sustainability reporting for companies. Beginning in 2025, all Main Board issuers must report climate-related disclosures (IFRS S2) on a "comply or explain" basis, transitioning to mandatory reporting for large-cap issuers in 2026. By 2028, all listed publicly accountable entities and significant financial institutions are expected to comply. The Hong Kong Institute of Certified Public Accountants will issue the final standards by year-end, effective August 1, 2025. The roadmap also includes plans for a regulatory regime for sustainability assurance and the development of green fintech.

?4. Global Plastic Treaty Negotiations Postponed Amid Disagreements

The fifth session of the Intergovernmental Negotiating Committee (INC-5) in Busan, South Korea, concluded without a consensus on a global treaty to address plastic pollution. Over 3,300 delegates from more than 170 nations participated, yet key issues—such as capping plastic production, managing hazardous chemicals, and financing for developing countries—remained unresolved. Notably, proposals to reduce global plastic production, supported by over 100 countries, faced opposition from major oil-producing nations like Russia and Saudi Arabia. UNEP Executive Director Inger Andersen announced that negotiations will resume at a later, unspecified date to address these critical divergences.

5. Qatar Threatens to Halt EU Gas Exports Over Due Diligence Directive

Qatar has warned it may cease liquefied natural gas (LNG) exports to the European Union if the bloc enforces its new Corporate Sustainability Due Diligence Directive (CSDDD), which mandates companies to meet specific criteria on carbon emissions, human rights, and labor standards. Qatari Energy Minister Saad al-Kaabi stated that penalties for non-compliance, potentially amounting to at least 5% of a company's annual global revenue, are unacceptable for QatarEnergy. The directive, set to take effect in 2027, has faced criticism for imposing high compliance costs and litigation risks on companies both within and outside the EU.

We appreciate your commitment to sustainability. Thank you for being a part of this journey. See you soon in the next edition of our newsletter!