The corporate sustainability issues to keep on your radar in 2024

With 2024 now well underway, what are the major ESG and corporate sustainability issues that communications professionals, sustainability managers and executives need to be aware of?

1. Transparency moves to eliminate the gender pay gap

From 27 February The Workplace Gender Equality Agency will publish the gender pay gaps for businesses with 100 or more employees. With ABS data showing the gender pay gap sits at 13%, the move aims to pressure employers into acting, while arming employees with the information they need to negotiate fairer pay.

This new public reporting represents a reputation risk for some – but also presents opportunities for those that have made progress on the gender pay gap to enhance their reputation.

For communications professionals at large corporates the question is – do you know what the gender pay gap is at your organisation and do you have plans in place to manage the reputational risks or opportunities that will follow the release of this data?

2. Will carbon labelling replace carbon neutral claims?

Are the days of corporates promoting carbon neutral claims numbered? The writing is already on the wall in Europe, where the EU has banned the promotion of carbon neutral status claims based on carbon offsets.

For corporate communications professionals and sustainability executives it’s crucial to understand if and how your organisation invests in offsets, and whether this represents a potential reputation risk.

As questions continue to grow around the integrity of the international carbon offset market, and regulators crack down on allegations of greenwashing, we believe more organisations will join the likes of Intrepid, All Birds and Logitech in introducing carbon labelling systems.

You can read more about why we believe carbon labelling will become the norm here.  

3. Climate transparency is in

This July will see the introduction of mandatory climate reporting requirements for large corporates. The Government’s new laws will require more than 1,470 public and private Australian companies to publish annual climate disclosures as part of their annual reports in 2025. This will increase to approximately 5,000 entities in 2027 as reporting thresholds lower. 

Under the proposed laws, companies would need to report on emissions projections, targets, and asses their climate-related risks with directors liable if they fail to produce credible reports.

The move to legislate greater transparency in climate reporting is part of a broader crackdown on greenwashing and an attempt by the government to “give investors the transparency, clarity and certainty they need to invest in new opportunities as part of the net zero transformation.”

Is your organisation ready for these changes and are communications professionals prepared for the potential reputational opportunities and risks it could create?

4. Nature based impacts

As climate reporting becomes mandatory, investors, customers, governments and regulators will increasingly turn their attention to the impact businesses are having on nature and biodiversity.

In fact, late last year the Taskforce on Nature-related Financial Disclosures (TNFD) released a new framework to help businesses integrate impacts reporting into their annual reporting. In the same way that the framework developed by the Taskforce on Climate-related Financial Disclosures (TCFD) evolved to become global best practice (via the ISSB Standards), we can expect the TNFDs to be adopted by corporate ESG and sustainability leaders before potentially becoming mandatory in the future.

5. Protecting customer privacy and data

Over the last two years, companies including the likes of Optus, Medibank, Latitude, Sony, DP World and more have been hit by major cyberattacks. The start of the year also saw the personal details of Nissan customers leaked onto the dark web.

These events have resulted in litigation, billions in lost revenue and severe reputational harm. The way some organisations dealt with the fallout of these events has also seen their brands tarnished and executives moved on.

How corporates protect consumer data, and communicate if and when major cyberattacks occur will continue to be a reputational risk in 2024.

Do you have a strategic crisis communication plan in place to manage the fallout of a cyberattack, outage or data leak? How do you intend to communicate to your customers, your staff, regulators, the government and the media if this occurs?

As any crisis management process, preparation is key. If you haven’t already, now is the time to review or update your crisis communication plan to ensure it is fit for purpose.

Do you need an ESG or Sustainability Communication Strategy? Contact us

Is your organisation ready to manage the potential reputation risks and opportunities these issues present? At Kaizen, we are experts in developing sustainability communication strategies that protect and enhance the reputation of our clients. For a confidential, free consultation, contact our Director Chris Williams – chris@kaizenco.au.