by Pippa Greenwood | Jun 4, 2024 | Blog
Global wildlife populations have plunged by nearly 70% since 1970. More than 44,000 species are currently threatened with extinction, with 41% of amphibians and 37% of sharks and rays on the brink of collapse. Overdeveloped land and overfishing, exploitation of natural resources, climate change, pollution and the spread of invasive species are the five main drivers of this loss.
Biodiversity isn’t just necessary for healthy ecosystems; it’s essential for economic growth. Nature degradation could cause a 12% loss to UK GDP in coming years, according to the Green Finance Institute — a larger hit to UK GDP than the 2008 financial crisis or Covid-19. Companies are dependent on nature and the services it provides, from crop pollination and raw materials to flood protection and carbon sequestration. These services are crucial to an organisation’s productivity and resilience. Yet companies (and economies) still freeride on nature’s benefits and are failing to integrate nature’s value into our current economic system.
That is until recently. New regulations and frameworks are increasingly encouraging, if not requiring, companies to halt and reverse nature loss and restore biodiversity, supporting a nature positive future. The new EU Corporate Sustainability Reporting Directive will require disclosure of the impact of larger listed EU businesses on biodiversity and ecosystems from 2024. In the UK, the Biodiversity Net Gain Policy requires developers to deliver a 10% biodiversity net gain (creating or improving natural habitats) with all new developments. Voluntary frameworks are being developed to hold companies accountable for their use of natural assets. The Taskforce on Nature-related Financial Disclosures (TNFD), helps companies assess and account for their nature-based risks and opportunities such as soil erosion and flooding to buildings and restoring natural habitats. The Science Based Targets Network (SBTN), a group of 80+ NGOs and wider partners, has published the first voluntary science-based targets for nature. The SBTN guidance supports businesses to set targets on biodiversity and nature. Examples include targets on water consumption, pollution and deforestation.
Whilst some of the nature-based frameworks and legislation are still voluntary, as with GHG emission reporting and climate target setting, measuring and reporting impacts on nature will no doubt soon be required. So, what practical steps can companies take to restore nature and rebalance biodiversity?
We’ve provided 10 tips to support companies on their nature positive journey.
- Conduct a biodiversity materiality assessment. This helps companies assess the impacts of their operations and supply chains on nature and biodiversity. Once impacts are understood, organisations can take steps to mitigate them. The SBTN provides tools to conduct a materiality assessment and the TNFD has a framework to assess companies’ nature-based risks, opportunities and financial impacts.
- Set targets to restore and prevent biodiversity loss. Examples include water pollution prevention targets, goals to avoid conversion of natural ecosystems, and zero-deforestation commitments. Unilever has committed to achieving a deforestation and conversion-free supply chain, meaning its raw materials such as palm oil, paper, soy and cocoa should no longer be associated with deforested and converted land. The targets relevant to a company will depend on its material nature and biodiversity impacts. Targets must be measurable so progress can be tracked. The SBTN has provided initial guidance to set freshwater and land targets (including partial biodiversity coverage). Ocean targets will be available in 2025.
- Develop a holistic, integrated strategy. Taking a holistic approach to nature strategy embeds it into the wider sustainability strategy and business model. With climate and nature so intrinsically linked, action in one area can support and impact the other’s progress. By integrating nature into a net zero roadmap, organisations can reduce adverse impacts on nature and biodiversity while working towards their climate goals. The SBTN’s ‘Avoid, Reduce, Restore, Regenerate, Transform’ (ARRRT) Action Framework, provides companies with a hierarchical approach to effectively implement a nature strategy.
- Source responsibly. Companies depend on natural resources such as water, timber, copper, coffee, cocoa and energy. But many of these are limited and extracting and using them often carries negative environmental and social impacts. Some businesses are already working to source responsibly, and a biodiversity assessment could highlight other hotspots. Certifications and standards such as the Forest Stewardship Council (FSC) for timber and paper, and Fairtrade for foods, can help with assurance. In 2023, 98% of IKEA’s wood was either FSC-certified or recycled.
- Restore habitats. Once a company has reduced its impact on biodiversity, it should look to restore depleted habitats. Reforestation, wetland restoration, regenerative agriculture, marine ecosystems protection and restoration projects are all good examples of habitat restoration. Choosing restoration projects that align with the company’s nature-based risks helps reduce these risks and supports the business case for more projects like it.
- Integrate nature into infrastructure. Invest in green infrastructure, such as green roofs, permeable pavements, wildflower boxes, rooftop beehives and living walls to support biodiversity in urban landscapes. The new Google London headquarters will have a roof garden with a rainwater irrigation system — providing a habitat for protected local species of bats, birds and insects.
- Improve biodiversity data. Nature and biodiversity has approximately 3,000 metrics, unlike its counterpart climate, which has predominately one — tonnes of carbon dioxide equivalent (tCO2e). Collecting all these nature-based metrics can be challenging. Working with and incentivising suppliers to gather this data down to the farm level will support accurate monitoring of future biodiversity levels and impact measurement.
- Invest in technology that promotes biodiversity. Investing in technology can plug the biodiversity data gap that makes measuring progress against targets challenging. Technologies like agri-tech and nature-tech monitoring systems can help. Chirrup, a biodiversity monitoring solution, uses AI to listen and monitor birds to track and protect the levels of biodiversity in a specific area. Tesco has teamed up with start-up tech innovator AgriSound to monitor insects and bees on its apple orchards, as part of its plan to promote biodiversity in the supply chain.
- Stand up for biodiversity: Engage with stakeholders, including local communities, NGOs and governments, to ensure that biodiversity concerns are acted upon and local knowledge is incorporated into decision-making processes. Sainsbury’s, Nestlé and H&M Group are pushing for mandatory disclosures on nature impacts to be brought in by 2030.
- Give nature a seat at the table. Appoint a member of the board to be nature’s advocate to ensure nature’s voice is heard. Patagonia has gone a step further and made nature its sole shareholder. The founder and former owner, Yvon Chouinard, transferred 98% of the company’s shares to environmental organisation Holdfast Collective. Each year, Holdfast will receive all profits that Patagonia doesn’t need to reinvest — an expected $100 million annually — to protect nature and biodiversity and fight the environmental crisis.
Context supports efforts to develop and implement effective corporate nature positive strategies. If you would like to talk about your organisation’s needs, please get in touch via www.contextsustainability.com or pippa.greenwood@contexteurope.com.
by Context | Jun 4, 2024 | Blog
Part three, the last in our series on microplastics, gives us cause for hope. Don’t miss our previous installments covering the basics about microplastic pollution and ways we’re keeping tabs on the problem.
If you’ve read our previous blogs about microplastics and how groups are keeping tabs on them, let us help you overcome that familiar all-is-lost feeling that the state of things can often bring on. Had Texas A&M graduate student Christine Figgener kept her frustration quiet, she might not have posted the viral video that caused a wave of environmental awareness and inspired the mantra “skip the straw, save a turtle.” One small act of social media posting, and a paper straw sweeps in. Sometime small acts can bring about change. And change is coming to the world of plastics.
One recent scientific headline highlights the work of a pair of scientists at the joint College of Engineering of Florida A&M University and Florida State. They have tried to crack the code on a biodegradable material that acts like plastic and leaves no trace at the end of its life. Their peer-reviewed paper touts the virtues of the new process, a direct synthesis of what’s known as a cyclic carbonate monomer.
“This is considered a breakthrough in material science, as it enables the realization of a true circular economy,” Hoyong Chung, the co-researcher, said in announcing the research.
Chung and lead researcher Arijit Ghorai are working in the research field of sustainable polymers. Sustainable polymers are materials derived from renewable, recycled, and waste carbon resources and their combinations, which at the end of life can be recycled, biodegraded, or composted. Sustainable polymers also exhibit reduced environmental impact throughout their life cycle. New sustainable polymers are finding applications in packaging, automotive parts, and 3D printing. The research is making inroads in circularity and providing alternatives to virgin plastics.
Recycling products isn’t a new idea, but recycling waste that’s clogging waterways is gaining ground. Sungai Watch and Indosole announced a collaboration to take old flipflops littering Indonesia and repurpose them into new sandals. Sungai Watch began its mission in 2020 to protect and restore Indonesia’s rivers and design simple capture systems to do so. The nonprofit’s single mission is to stop plastic from going into the ocean. Old flipflops had started to pile up when they hatched the partnership with Indosole to repurpose them.
Within the plastics recycling community in the U.S., there’s momentum building to take advantage of plastic waste’s attention-grabbing moment. At the same time that news outlets are putting retail waste management to the test, recyclers see changes on the horizon. At their annual gathering this spring, plastic recyclers heard and discussed reasons for optimism.
Data may help. Experts expect data requirements about end markets, recycled content, mass balance, bale audits, and other applications will become more common as the need for accountability rises. On opening day, one panelist offered this to his colleagues: “The answer lies within everybody here thinking about what you can do differently, how you can innovate, how you can get started.” We hope our microplastic series stimulates the continued conversation. Thanks for reading.
by Sarah Walkley | May 30, 2024 | Blog
We are replacing the things we buy more quickly than ever before. UK households buy a new mobile phone on average every one to two years. In 2021, we also bought 60% more clothing than 15 years earlier, but kept items for only half as long. Around one in five of us buys new clothes every two weeks. This has resulted in vast amounts of waste (see our previous blog on How did we become so wasteful?).
Sometimes, this is because we have bought cheap goods that have fallen apart quickly. Other times, items are not designed to be reparable, or the manufacturer has decided to no longer support a particular model or piece of software (known as ‘planned obsolescence’).
But much of the time, we simply want the newest version.
Four in 10 Germans said that they changed their phone within three years, because they wanted a better device. A further 28% changed phones because their provider offered them an upgrade. Their old phone still worked perfectly well.
We are encouraged to see the latest version as significantly better than what we currently have, even if the improvements are marginal. This is known as ‘psychological obsolescence’. Christine Frederick first suggested the concept back in 1928 in her book Selling Mrs Consumer. She identified three reasons to upgrade, with psychological obsolescence being the ultimate reason:
The technical phase. Leaps in technology mean that new products are technically superior to their predecessors. As a result, we swapped vinyl records for CDs and are now replacing petrol and diesel cars with electric vehicles.
The practical phase. Two products are integrated into one, making the new product more convenient, e.g. increasing storage capacity on a smartphone means we no longer need a separate iPod. But it can also mean things are less repairable. We end up having to refit an entire kitchen because an integrated cooker, dishwasher or fridge has failed.
The aesthetic phase. There are few technical or practical differences between the old or the latest version; it is simply a matter of styling. We are encouraged to discard the previous version, because the new one is more ‘beautiful’ or is in this year’s colour. This is the heart of psychological obsolescence.
Psychological obsolescence affects some types of products more than others, such as clothing, small electricals and homewares.
We hold on to other products for longer. Luxury goods are prized as ‘investments’. We perceive them as special and worth looking after, because we have had to save up for them. We cannot afford to replace them quickly. Meanwhile, ‘workhorse’ products are valued for their functionality. Few people change their lawnmower or vacuum cleaner regularly because they want the latest style or colour.
The trend towards psychological obsolescence started in the car industry, with manufacturers releasing regular ‘facelifts’ to encourage consumers to buy a new vehicle. It was abundantly clear to your neighbours if the car parked outside your house was not the latest version.
However, the car industry has also shown us an alternative approach. The Volkswagen Beetle and the Mini have become so iconic that they have been redesigned only once in their lifetime. They are desirable for their classic looks. They shifted from being replaceable to ‘investments’.
The music industry may be taking a similar direction, with fans returning to vinyl for the music that they want to listen to again and again — partly because of the warmer sound which is closer to the live experience. Though still far behind streaming revenues, US sales of vinyl outstripped CDs for the first time in almost four decades in 2022 and accounted for over 70% of physical music sales the following year.
To reduce waste and reverse the trend towards ever shorter product lifecycles, more products need to make this shift. As consumers, according to Toronto Metropolitan University’s Lloyd Alter, we have to learn to differentiate between design, which offers us meaningful change, and style, which provides only the illusion of change, even though it can be tough to resist fashion trends. For brands, the shift could give rise to a design classic, unlocking premium prices and lifetime customer loyalty.
by Context | May 28, 2024 | Blog
In part two of our three-part series on microplastics, we take a look at how we are tracking their spread and efforts to stem the tide. Part one described our current understanding of the problem. Our final installment will look at hopeful solutions.
Many organizations are casting a wide net to grapple with the growing microplastics problem (see our previous post “Where Our Understanding Lies”). Many types of organizations, trade groups, consultants, and government agencies are keeping tabs on plastic production and proliferation. Their missions vary somewhat, but their overarching goals are to understand and lessen the impacts on people and the planet.
The Global Partnership on Plastic Pollution and Marine Litter (GPML) represents groups worldwide trying to slow the proliferation of plastic pollution. The partnership operates under the auspices of the UN Environment Programme (UNEP). In 2023, GPML published “Turning Off the Tap,” a report that covers the causes of pollution, not just the symptoms. It also advocates for change.
Because stemming the production and uses of plastics has economic repercussions, GPML calls for a “systems change scenario” that combines reducing the spread of plastic waste while transforming the market to a more circular model. That sentiment is echoed by The Pew Charitable Trust’s review of the state of plastic in the 2020 report “Breaking the Plastic Wave,” produced with SYSTEMIQ, a company collaborating on projects for environmental system change.
System change scenarios are just as they sound: creating multiple pathways to pivot away from business as usual. For plastic, they include:
- Increased recycling
- Investing in biodegradable products
- Reducing unnecessary packaging
- Developing ways to covert plastics to other uses
- Curbing the international waste trade
- Finding substitutes with fewer downsides
Those changes require shifts in thinking, by investors, manufacturers, and consumers. Progress will require moving from primarily a linear economy of single-use plastic to multiple pathways of elimination, reduction, and innovative reuses. Many actors will need to make commitments for success.
Work has started to build global buy-in for change. In a historic decision in March 2022, all 193 UN Member States voted at the fifth UN Environment Assembly to end plastic pollution. This year, critical negotiations about the future of plastic pollution are in motion. A primary objective is to form a legally binding global agreement by the end of 2024 to stop plastic pollution.
A hinderance remains a lack of data about plastic production, migration, and disposal. One stopgap that has emerged recently may help. NOAA’s Marine Microplastics Database is one of the newest databases for sharing knowledge about microplastic pollution in water around the world. A user application provides data on the occurrence, distribution, and quality of global microplastics and is the repository of multiple datasets from bodies of water near every continent. NOAA’s map of microplastic concentrations gives new meaning to “seeing is believing.”
In our last post in this series, we’ll focus on how necessity fuels invention, a truism that extends to microplastics.
by Context | May 13, 2024 | Blog
Today, we dive into the subject of microplastics in this first of a three-part series taking an initial look at the scientific understanding and extent of the problem. In part two, we’ll cover how plastics are being tracked, and finally, in part three, we’ll describe hopeful efforts bringing about change.
The need hasn’t been greater for a better understanding of how microplastics may be affecting us and the environment. Some say we are in a race against time to stem harsher consequences. Hundreds of millions of tons of plastics are produced each year, and of that, close to 2 million metric tons goes into the ocean, one of the greatest modern-day threats to marine ecosystems.
In the scheme of things, our knowledge of microplastics — plastic debris about the size of a sesame seed — and their tinier cousins, nanoplastics, of less than 0.1 micron — isn’t extensive. Understanding the impact of the proliferation of plastic in our ecosystem is in its formative years. The sources of these prevalent particles range from pellets used in manufacturing goods to larger plastics deteriorating in the sun.
What is expanding are the places where plastics in all their various sizes are found. No longer confined to landfills, plastics have been documented along highways, in the Arctic, inside glaciers, in the deepest part of the ocean, in our bodies, and even in the air. Yes, we’re literally breathing them in.
Inside our bodies, researchers have found plastic in organs, arteries, placenta, and human waste. And underlying the spread of microplastic is the fact that most of them are non-biodegradable and can stick around for centuries. The longer they persist, scientists have observed, the insidiously smaller they become. Definitive knowledge about their end-of-life fate is lacking.
“None of the commonly used plastics are biodegradable. As a result, they accumulate, rather than decompose, in landfills or in the natural environment,” as noted in a 2017 Science.org article chronicling the fate of all plastics ever made. “The same properties that make plastics so versatile in innumerable applications—durability and resistance to degradation—make these materials difficult or impossible for nature to assimilate.”
How microplastics affect human health is a chief concern. Several factors complicate knowing the health impacts of microplastics because of the material’s inherent complexities:
- There’s no single kind of microplastic
- They come in many shapes and sizes — spheres, fragments, and fibers
- Other chemicals additives are often added to them
- Microplastics can carry “hitchhikers” such as viruses
Because of these variables, designing the right kind of research about the potential harm of microplastics faces many challenges, and consequently, evidence pointing to specific harm from microplastics is modest or just now emerging.
Sherri Mason, a scientist with Penn State, told The Washington Post that over the next decade, better data will come to light, “but we’ll never have all the answers.” Techniques to measure microplastic, detect the kinds of polymers in them, and know how those chemicals and polymers act under certain conditions in nature and in our bodies will be part of the investigations.
Grabbing fewer headlines, a third area of concern about plastics is how they affect our climate. Most plastics originate from greenhouse gas-emitting (GHG) fossil fuels. Transporting plastics causes CO2 emissions — before, during, and after their use. In its afterlife, incinerated plastic releases chemicals that contribute to climate change. If landfilled, plastic can emit methane, a potent GHG, as it breaks down.
Where does that leave us? In the second blog of this three-part series, we delve into efforts that are underway to keep tabs on microplastics in the environment and support change.
by Sarah Walkley | May 2, 2024 | Blog
Environmental and social issues have never been far from the headlines over the past 12 months. While they often take a back seat in times of economic or political uncertainty, these issues are returning to the top of the agenda ever more quickly after a crisis, according to Ipsos. As Context embarks on a new financial year, we’ve compiled our take on the 12 months gone by and what it means for business.
Growing compliance requirements
The regulatory burden has grown significantly over the past 12 months, with several new rules coming into force and many others receiving final approval.
In the US, the Securities and Exchange commission published the first nationwide reporting requirements, obliging large companies to include mandatory disclosures on scope 1 and 2 greenhouse gas emissions in their annual report and registration statement from the 2025 financial year. However, within a month, the rules were put on hold pending a judicial review, delaying final implementation. Nonetheless, publication of the new rules sent a clear signal that more detailed climate reporting will soon be a requirement in the US.
In parallel, sustainability professionals will need to get to grips with requirements under Europe’s Corporate Sustainability Reporting Directive (CSRD), which applies to listed companies from 2024 and up to 50,000 medium and large businesses before the end of the decade. The Directive covers a broad set of environmental and social issues and sets out requirements to conduct and report on a detailed double materiality assessment.
The EU also approved the Corporate Sustainability Due Diligence Directive, obliging companies to assess, reduce and address negative impacts in their supply chain, including on issues such as child labour, slavery, exploitation, water and deforestation. The directive applies to all large companies operating in the EU. In addition, the EU deforestation-free products regulation enters into application later in 2024.
Following a review which found that 53% of sustainability claims were vague, misleading or unfounded, the EU updated consumer protection law to rule out greenwashing. The new rules, which came into effect in March 2024, set out what companies can and cannot say about their products, requiring claims to be clear, specific and substantiated. They will be swiftly reinforced by a new green claims directive, currently making its way through the EU Parliament.
More regulation on the horizon
Additional regulation will continue to come thick and fast over the next few years, with a range of proposals under review.
Europe turned its attention to how things are made in 2023. The EU agreed a draft right to repair directive, making it easier and cheaper for consumers to ask for broken and defective goods, including mobile phones, vacuum cleaners and washing machines, to be repaired rather than replaced. If an item is still under guarantee, the repair will be accompanied by a one-year extension to the warranty. The new regulations are expected to come into force in 2026. While there have been complaints that the directive covers only a limited set of goods, it adds to the pressure on companies to design products to be repaired.
France went further, approving a ban on advertisements for fast fashion brands and a bonus scheme offering up to €21 off the cost of repairs for clothing and shoes. The French Government aims to ban manufacturers that produce vast amounts of cheap clothing every day such as Shein from the country’s screens, claiming their approach compels other manufacturers to expand their range to keep up with competition, leading to excessive production and consumption. The restrictions on fast fashion have yet to be approved by France’s upper house, but the new rules look set to come into effect in 2025.
Elsewhere government action came down in favour of local communities. The US Administration released an additional $328 million in funding to help communities address the impacts of climate change through water storage and recycling. Ecuador halted drilling for oil in the Amazonian national park, while Brazil issued landmark protections for Indigenous communities.
Under the spotlight
Almost 200 new climate legal cases were filed in the year to the end of May 2023, with an increase in cases filed against companies. While the total is down slightly on the previous year, litigation covered more countries and more issues. Around half led to a ruling that promoted climate action.
Governments were increasingly compelled to protect the rights of the next generation; companies may soon be expected to follow suit. The state of Montana was found to have acted against young people’s right to a ‘clean and healthful environment’ by promoting fossil fuels, while in Europe six young people are taking action against 32 countries, including all EU members, claiming that a failure to act on climate change discriminates against the next generation.
Companies faced scrutiny on multiple fronts. Singapore issued its first decision on greenwashing, demonstrating that regulators globally are increasingly prepared to take action. The Advertising Standards Authority banned a campaign for Prism+ air conditioning units. Prism+ had claimed that using its energy efficient units could ‘save the Earth’. In New York, activists questioned why materials manufacturer Saint Gobain should be recognised as the headline sponsor of Climate Week given its record on pollution, while state authorities took aim at PepsiCo for failing to act on plastic waste.
2024 is set to be the biggest election year ever, with over 40 countries and regions going to the polls, including in the US and EU. That has led to an uptick in scrutiny of company donations and lobbying activity to ensure democracy is protected.
An additional steer
September saw the launch of the UN Global Compact’s Faster Forward Initiative. Current estimates put us collectively on course to achieve just 15% of the Sustainable Development Goals by the end of the decade. The Faster Forward Initiative identifies five areas where companies can not only directly affect the pace of progress, but also unlock additional co-benefits, helping to deliver the wider sustainable development agenda. These are gender equality, climate action, living wages, water resilience, and finance and investment.
An expert group of the International Labour Organization (ILO) met in February to review living wages, publishing a clearer definition of a living wage and how to make it a reality globally. The ILO also committed to providing guidance for employers and workers on setting wages.
Beyond climate
Reducing emissions is no longer enough. Growing political instability brought supply chain risks into sharp focus, with attacks on shipping in the Red Sea disrupting supply chains. Ongoing geopolitical tensions also undermine businesses’ willingness to invest, increasing existing social inequalities. Meanwhile, international pressure has been growing for businesses have to consider a wider spectrum of environmental and social issues and their interconnections.
Following the global stocktake of national climate commitments, COP 28 recognised the triple planetary crises — climate change, biodiversity loss and pollution — and the need to tackle all three issues together to accelerate momentum. The decision urged governments to accelerate efforts to protect and restore nature to meet the Paris Agreement.
To date, there has been no formal mechanism for protecting the high seas — the vast expanse of ocean that extends beyond national waters. A new UN Treaty for High Seas Conservation aims to change that, introducing a framework for international cooperation to protect and restore the high seas. It could also lead to a ban on damaging practices such as bottom trawling and the use of harmful chemicals.
Meanwhile, negotiations got underway for a UN treaty on plastic pollution, leading to the publication of an initial draft. The ‘zero draft’ has been broadly welcomed as a comprehensive document, which would support reduction of plastic use, help prevent pollution and stimulate a shift to a circular economy. However, there is a need to sharpen the text to make it legally binding.
Business will have to understand its risks and impacts in relation to all these issues and report on its activities under both CSRD and new science-based targets for nature. In May, 17 companies embarked on a pilot to set verifiable goals for the protection and restoration of nature. The pilot is due to conclude in May 2024, providing a framework for companies to set and track nature progress.
Artificial intelligence (AI) has the potential to support progress on all of these fronts, providing a more comprehensive assessment of risks and responses to environmental issues. However, 2023 was the year when businesses had to grapple with the potential impact of AI on jobs, privacy, social inclusion and democracy.
More ambitious responses
While the sustainability agenda may be expanding constantly and the demands for action accelerating, we have also seen companies be more ambitious in their response.
Cross-company collaboration has increased in a bid to tackle systemic problems within the supply chain and spread the cost of innovation. The Footwear Collective brings together footwear manufacturers including New Balance and Crocs to tackle sustainability in the shoe industry. H&M Group joined forces with Vargas Holdings to form Syre to decarbonise and reduce waste in the textiles industry.
Apple, Coca-Cola and Microsoft, among others, have all been investing heavily in sustainability, either to identify innovative approaches to sustainability challenges, accelerate the development of start-ups and technology (for example, to capture and store carbon dioxide), or mitigate their negative impacts. One-third of the corporate venture capital funds launched in 2023 were sustainability focused. Another one-quarter related to AI, with just 40% of funds focused on any other issue.
The number of companies setting science-based targets for emissions reduction doubled in 2023, topping 4,000 before the end of the year. Some 160 stand ready to develop science-based targets for nature, while 230 have signed up to the UN Global Compact swelling its business membership to almost 24,000.
Preparing for the year ahead
We can’t tell you exactly how things will play out, but we do know that there will be ever greater demand for action on multiple fronts.
- Tip 1 – Understand your impacts, risks and opportunities: Double materiality sits at the core of the new European sustainability reporting standards. We’ve isolated the key steps to assessing impacts, risks and opportunities and developed an assessment toolkit to help make the process more straightforward.
- Tip 2 – Refine your climate strategy: As the urgency to combat climate change continues to grow, so does the importance of having a robust and credible climate strategy and net zero roadmap. Here are our 10 top tips for developing, implementing and evolving your climate strategy and driving meaningful change within your business.
- Tip 3 – Define how you contribute to a nature-positive world: Expectations are growing for businesses to have a carefully considered nature strategy that’s integrated with existing environmental and social action. Explore how companies are putting nature on the board.
- Tip 4 – Work towards a fairer society: Social issues are also set to come out from under the environment shadow of climate action, making it essential to define how your business promotes human rights, decent working conditions and diversity across the supply chain.
- Tip 5 – Get ready for implementation: CSRD will be rolled out in waves over the next five years. Starting early is important for smooth and efficient implementation.
- Tip 6 – Reflect on your reporting approach: With so much going on, it’s tempting to roll up your sleeves and dive straight in. Don’t. Changes in reporting requirements provide the perfect opportunity to rethink reporting and how your business communicates with stakeholders.
We’re helping clients to navigate the evolving sustainability landscape through strategy, reporting and communications support. If you’d like to chat about how we can help you prepare for the road ahead — including CSRD reporting and double materiality assessment, net zero and nature roadmaps, climate advisory services, or other strategic priorities — please get in touch via www.contextsustainability.com or helen.fisher@contexteurope.com.
