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Environmental, social, and governance (ESG) regulations are set to undergo significant changes in 2024, as a host of new regulatory guidance comes into effect. This comes alongside updates and important dates for existing voluntary frameworks.
Staying on top of developments in the ESG framework landscape can prove difficult, as they are subject to frequent revisions and many regulatory requirements adopt a staggered approach when it comes to implementation. We’ve listed some of the key dates to mark on your calendar for 2024.
As governments worldwide intensify their focus on sustainable practices, these regulations mark crucial steps in addressing the challenges posed by climate change, social inequity, and corporate governance. From stringent carbon emission targets to enhanced disclosures on social impact, these regulations will not only shape corporate strategies, but also have far-reaching implications for investors, stakeholders, and the consumers.
Some of these dates are subject to change, but all are correct as of January 2024.
ESG framework dates in January
1st January: New CSRD regulation comes into effect
Large public interest entities (PIEs) already covered by the NFRD will need to start reporting for the CSRD for the 2024 financial year if they meet at least two of the following requirements: 500 or more employees, €40 million net turnover, or €20 million in assets.
From 1st January 2025, all other large PIEs (with over 250 employees and a turnover of over €40million) will need to start reporting according to the CSRD requirements for the 2024 financial year. These firms should begin monitoring their ESG metrics now.
For a full guide to CSRD eligibility criteria and compliance, download our whitepaper.
1st January: IFRS Sustainability Disclosure Standards are implemented
The IFRS S1 and S2 standards allow firms to disclose information related to their sustainability-related risks and opportunities. They are effective for reporting periods beginning on or after 1st January 2024.
ESG framework dates in March
Entire month of March: B Corp Month
B Corp Month celebrates the work of B Corp certified agencies. Certified B Corps are a network of businesses that balance profit with people and the planet – true pioneers of ESG best practices.
To become B Corp certified, companies are audited to ensure they meet high standards of social and environmental performance, accountability, and transparency. It is not the easiest of processes, so when a company is B Corp certified, it is often publicised.
March is a time for registered B Corp companies to shout about their accomplishments, so those looking to obtain a B Corp Certification in the future should seek to apply ahead of this month to make the most of the focus on this topic!
ESG framework dates in April
April: SEC Climate disclosure rule
The SEC pushed back the release of its finalised rule on public companies’ climate-related disclosures to April. The regulation aims to improve transparency to inform investors of climate risks.
April: CDP Portal Opens
The CDP’s not-for-profit global disclosure system opens its portal in April and begins accepting data submissions from sustainability-driven firms.
1st April: GRESB Real Estate Assessment Opens
The Global Real Estate Sustainability Benchmark is an internationally recognised benchmark assessing ESG performance in properties. 1st April marks the beginning of the assessment reporting period.
30th April: EDCI data submission deadline
All firms wishing to submit their ESG data to the EDCI should do so by 30th April. The EDCI is the leading ESG framework in the private markets industry, with 260 GP and 115 LP members representing over $28tn AUM worldwide. This initiative has gone far in creating a common language for ESG allowing private equity managers and their investors to enhance transparency and focus on improving their ESG. KEY ESG has a tech partnership with the EDCI which enables our clients to stream their ESG data direct from our dashboard into the EDCI submission portal via API. We also enable our clients to view the EDCI benchmark data direct in our app so they can compare, contextualise and improve their ESG performance.
ESG framework dates in May
31st May: The FCA’s anti-greenwashing rule takes effect
In November 2023, the FCA published a policy statement on its new sustainability disclosure requirements (SDR). The anti-greenwashing rule will take effect on 31st May. Rules on the use of product labels and related disclosures will take effect on 31st July 2024.
ESG framework dates in June
30th June: Level 2 SFDR disclosures due
FMPs need to report on their performance for the first SFDR reference period through the PAI statement and other disclosure requirements of the Level 2 SFDR no later than 30th June 2023.
Each firm’s PAI statement must be published on their company webpage in a manner that is easily accessible, free of charge, not misleading, and easy to read.
ESG framework dates in July
July: UK to make endorsement decisions on IFRS S1 and S2
The UK’s Sustainability Disclosure Standards are due to be based on the ISSB’s framework, with endorsement decisions coming in July.
July: CDP Portal closes
The CDP’s not-for-profit global disclosure system opens its portal in April and closes in July. Dates vary each year.
1st July: GRESB Real Estate Assessment closes
The Global Real Estate Sustainability Benchmark (GRESB) Assessment Portal closes on the1st of July at 23:59 PDT. This is the submission deadline for the 2024 Assessments.
31st July: New FCA Sustainability Disclosure Requirements (SDR) rules take effect
New rules on the use of sustainability-related product labels and disclosures will become mandatory on this date. Read our blog to find out more about the labels.
ESG framework dates in October
October: GRESB Real Estate Assessment results available
The GRESB Real Estate Assessment Portal closes in July, and results are generally made available in October.
ESG framework dates in December
December: CDP scores are released
The CDP’s not-for-profit global disclosure system typically opens its portal in April and closes in July. CPD scores are then made available in December.
