ESG regulation: what companies should prepare for in 2024

Pablo Riveros
6 min readAug 3, 2023
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ESG regulation: what companies should prepare for in 2024
Summary — Manabu.dev is here to assist your not just save operational cost but reporting and showcase data!

🌍 Sustainability Imperative:
Transitioning from record global temperatures in 2023, sustainability becomes an ethical imperative in 2024.
Despite challenges in 2023, climate action is crucial, with new sustainability regulations on the horizon.

🌐 ESG Regulations in Focus:
EU’s Corporate Sustainability Reporting Directive (CSRD):
CSRD law effective from January 1, 2024, mandates large EU companies to report climate impact.
Requires transparency on ESG risks, driving changes in strategy, governance, and operations.
Shifts focus beyond compliance, emphasizing sustainability integration into business models.

🇺🇸 SEC’s Climate Disclosure Rules:
Expected in April 2024, US SEC rules require public companies to disclose climate-related information.
Aims to standardize climate disclosures, prevent greenwashing, and provide investor-grade information.
Businesses may need tech-enabled reporting to meet new requirements.

🌲 Environmental Regulations:
California’s Climate Corporate Data Accountability Act:
Companies with >$1 billion in global revenue must audit 2025 emissions by the end of 2024.
Significant impact on over 5,000 companies in California.

🌊 Global Plastics Treaty 2024:
Anticipated to combat plastic pollution globally, with meetings in April and November.
Aims for binding rules on plastic production, reuse, and disposal; encourages corporate accountability.

🌳 EU Deforestation and Nature Restoration Laws:
Deforestation Law restricts sales of certain products linked to deforestation; effective by December 2024.
Nature Restoration Law, expected in February, mandates reporting on nature-related aspects for large companies.

💸 Financial Regulations:
Sustainable Finance Disclosure Regulation (SFDR) — European Parliament:
Requires financial institutions to report ESG disclosures by June 2024.
Aims to make sustainability profiles comparable and promote capital flow into sustainable investments.
Sustainability Disclosure Requirements (SDR) — UK FCA:
Effective May 2024, enhances transparency for sustainable investment products.
Includes anti-greenwashing rule to ensure fair and clear sustainability-related claims.

🌐 Other Regulations to Watch:
ReFuel EU Aviation Initiative (Effective January 1, 2024): Advances sustainable aviation fuels in the EU.
Corporate Sustainability Due Diligence Directive (CSDDD) — European Parliament: Targets large EU companies for global value chain impact assessment.
German Supply Chain Due Diligence Act (From January 1, 2024): Broadens to apply to companies with over 1,000 employees, emphasizing supply chain awareness.

What is ESG and importance for business?

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ESG stands for Environmental, Social, and Governance. It’s a set of criteria used to assess a company’s performance and practices in terms of its impact on the environment, its relationships with society, and its corporate governance. ESG factors are used by investors, analysts, and stakeholders to evaluate a company’s sustainability and ethical practices.

Environmental: This aspect focuses on how a company manages its impact on the environment. It involves considerations such as carbon emissions, resource usage, waste management, and efforts to mitigate climate change.

Social: The social dimension looks at a company’s relationships with its employees, customers, communities, and other stakeholders. It involves issues like diversity and inclusion, labor practices, human rights, product safety, and community engagement.

Governance: Governance refers to the company’s internal structures, policies, and practices that guide its decision-making and accountability. This includes things like board composition, executive compensation, shareholder rights, transparency, and ethical business practices.

ESG criteria are increasingly being used by investors to make more informed decisions about where to allocate their funds. Companies that perform well in terms of ESG factors are often considered to be more sustainable and better positioned for long-term success. This concept reflects a growing awareness of the interconnectedness between business practices and broader social and environmental issues.

In today’s fast-paced business landscape, sustainability and environmental responsibility have become paramount for companies seeking to thrive and make a positive impact on the world. Meet Manabu, the all-in-one ecosystem that’s transforming businesses by seamlessly integrating corporate training, education, and ESG actions.

How big ESG Market is?

Getty images ESG

(ESG) market can vary depending on the sources and metrics used for measurement. The ESG market includes investments and practices that take into consideration environmental, social, and governance factors alongside financial performance.

Global ESG investment, with market size estimated by Bloomberg Intelligence to hit $50 trillion in 2025. As reference, $50 trillion represents nearly a threefold increase from AUM levels of 2014, according by FORBES

Unlock Greener Operations & Thrive with Manabu.dev🌱

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  • Empower your community with tools for green initiatives and engagement.
    -Showcase your green commitment to attract eco-conscious customers and investors.

Manabu aligns perfectly with ESG goals because:

  • Environmental: We reduce your carbon footprint and resource consumption.
    -Social: We build engaged communities around sustainability.
    -Governance: ️ We provide data-driven transparency and responsible management.

In short, Manabu helps you:

  • Save money
  • Go green
  • Thrive as a business

A Platform Driven by Community

source manabu.dev website

Manabu Community leverages a unique community-driven approach, fostering connections between two distinct groups:

Eco Tech Nomads (global)

External Community:

  • 10,000+ eco-tech nomads: This vibrant network of individuals seeks sustainable living and workspaces that align with their green values.
  • Global reach: These remote workers and entrepreneurs hail from various corners of the globe, bringing diverse perspectives and experiences to the community.
  • Shared focus: Sustainability and green initiatives are at the heart of this group, shaping their choices and driving their engagement with Manabu.
Sustainability Champions (Internal)

Internal Community:

  • Sustainability Champions: Manabu empowers “Sustainability Champions” within partner organizations. These passionate individuals serve as changemakers, advocating for eco-friendly practices and implementing initiatives that reduce environmental impact.
  • Digital learning: By providing digital resources and training, Manabu equips Champions with the knowledge and skills needed to successfully spearhead sustainability efforts within their workplaces.
  • Ripple effect: As Champions put their learnings into practice, their actions inspire and influence others, creating a ripple effect of positive change throughout the organisation.

This two-pronged approach fosters a collaborative ecosystem where the external community benefits from sustainable spaces provided by partners, while the internal community finds support and inspiration from like-minded individuals across the globe. Source as reference:

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Thanks for reading, really appreciate it!

If you’ve had any experiences or reflections from your own startup journey, please share in the comments below. I’d love to hear!

Also, if you’re interested in sustainability or nomads community, you can see some of my other posts here:

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Pablo Riveros

Techpreneur, Founder of one of Kyushu's largest Startup Tech Ecosystems (Manabu Community, Fukuoka Startup Collective). World Nomad, GreenTech and Expert