Is Europe ready for the 2021 new Sustainability (ESG) challenges?

December 28, 2020
By CSE

As 2020 comes to an end, it leaves behind socio-economic consequences. Covid-19 has led to several financial costs that have bended even the strongest players and economies, pushing more and more the revaluation of investments and the reconciliation of their capital. The incorporation of ESG factors has turned into a central issue of investing and decision making, and the trend is accelerating even more.

 

Τhe significance of each ESG factor varies, depending on the businesses and sectors. This means that companies and investors should be in a position to evaluate the potential issues of a business operation and be engaged to manage them.

 

Europe has already announced new plans in the sustainability sector focusing on sustainable finance and investment, trying to encourage companies to report more on their performance and climate risk exposures. Taxonomy, Second Shareholder Rights Directive (SRD II), Prudential Legislative Texts, EU Green Bond Standard, EU EcoLabel on financial products, new guidelines on Non-Financial Reporting Directive (NFRD) and much more, are all directives already announced by the European Commission and will come into action gradually from 2021. However, it’s still unknown how ready companies are to incorporate the new data into their sustainability performance.

 

Furthermore, to meet the above expectations, companies should understand the need of their supply chain’s transparency. This is a crucial challenge as many sectors often fail to integrate ESG factors into their supply chain strategies.

 

One more important challenge is circular economy itself. The new Circular Economy Action Plan is one of the main pillars of the European Green Deal, aiming to maintain the value of products, materials and resources, minimizing waste at the end of its lifecycle. Companies should revise consumption, energy and manufacturing processes. It may also be necessary to completely renovate their production models.

 

As CSE’s research department continues to provide valuable insights into various aspects of sustainability and ESG performance, it furthers its commitment to high caliber training in sustainability for C-Suite executives & Sustainability Managers worldwide.

 

This challenging three-day digital training offered in February 18, 19, 22 by Center for Sustainability and Excellence (CSE) aims to provide to sustainability professionals all the latest tools and resources required to implement or upscale existing sustainability initiatives.

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