In Europe, the transition towards a low-carbon and more sustainable society is already reshaping the economy, creating new opportunities, and changing the cost of business activities. For companies, the implications are evident. Not becoming more sustainable will make them vulnerable to loss of revenue and reputation, as well as litigation and regulatory penalties.

Regulation itself is an important driver of these changes and a critical factor for companies in planning how to meet their commitments in terms of transforming their activities. 2024 will be a crucial year for the launch of sustainability regulations. Several key sustainability initiatives will be implemented, and the European Parliament elections in June will determine the direction and level of ambition of the next wave of green economy legislative activity in the Union.

Experts at Deloitte have dedicated a detailed outlook to sustainability regulation, exploring the most urgent developments and their implications on business strategies and operating models.
The European Union’s response to what is called the “climate imperative” begins with the Corporate Sustainability Reporting Directive (Csrd), and for most companies, there is still much to be done to fully meet the new requirements. The Csrd can be leveraged to generate changes and improve efficiency through other regulation-driven developments.

In addition to reporting requirements, the Deloitte document highlights four key themes that companies should focus on this year. The keywords are: circularity, supply chain, decarbonization, and greenwashing.

Circularity

Circularity is an unavoidable theme. “In 2024,” write the experts, “companies should focus on understanding what circular design means for their products and services, with EU regulatory initiatives setting requirements for product design, packaging and packaging waste, the ability to repair products, and end-of-life waste disposal, among other things. The focus on circular design can also create opportunities for companies, such as sourcing secondary materials, designing products using waste from other companies, and offering repair services.”

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