First and foremost, I wish you all a Happy New Year! May 2024 bring renewed energy, inspiration, and success to each of you. Before we fully dive into the new year. Apologies in advance for the length of this article, but compressing a year brimming with significant updates and developments into a few paragraphs is no small feat. So, grab a cup of your favorite beverage, and let's embark on a recap of the pivotal milestones and changes that have shaped the landscape of sustainability and environmental policy over the past year.

As we wave goodbye to 2023, I'm penning down not just one of my first articles, but also the last for this year. Reflecting on 2023, I see a year that has been nothing short of extraordinary on a personal level. My journey began with sharing my thoughts on LinkedIn, where I explored topics that resonated both professionally and personally. The connection these posts and articles have made with many, I believe, stems from their roots in real questions and curiosities that I have also faced. Engaging deeply in research, I sought out answers and insights, which I initially kept to myself. However, driven by a passion for continuous growth and the desire to build a wealth of knowledge, I started to share these findings. This practice turned into a ritual of learning, summarizing, and disseminating knowledge, not just for my benefit but for all who share similar interests and questions.

Curiosity has always been a part of my nature – constantly formulating questions and seeking answers. But sharing these explorations? That was new territory for me, inspired by insights from Austin Kleon, whose work is detailed further in the last section below. I had to overcome the notion that sharing is reserved for the 'geniuses' among us. The reality is, the insights and experiences of 'normal people' often resonate the most. It's from this realization that I ventured into sharing topics that intrigued me and eventually led to the launch of this newsletter towards the end of this year.

The response was unexpected – an overwhelming number of subscribers from just a single post, a delightful surprise indeed. Having you join me on this enlightening journey of self-development and shared learning has been an absolute pleasure.

As 2023 comes to a close, this end-of-year article serves to encapsulate the significant strides in corporate sustainability and environmental policies. It is a distillation of the progress we’ve observed this year and a glimpse into the expected developments and requirements for 2024. From shifts in policy to their practical implementation, this piece mirrors our collective odyssey through the intricate and enthralling landscape of sustainability.

Let’s together revisit the key milestones of 2023 and peer into the unfolding opportunities and challenges of 2024.

Table of Contents

• Section 1: Global Sustainability and Environmental …

  • Understanding the COP Summit and Its Significance

  • Historical Milestones in COP

  • Reflecting on COP28's Outcomes

• Section 2: European Sustainability and Corporate R …

  • Corporate Sustainability Reporting Directive (CSRD …

  • Corporate Sustainability Due Diligence Directive ( …

• Section 3: European Sustainability and Environment …

  • Green Claims Directive

  • Ecodesign for Sustainable Products Regulation (ESP …

  • Carbon Border Adjustment Mechanism (CBAM)

• Section 4: Sustainability Insights: 2023's Selecte …

• My Favorite for this Week

  • Books

Section 1: Global Sustainability and Environmental Policies - Spotlight on COP28

Understanding the COP Summit and Its Significance

As we delve into the realm of global environmental policies, it's crucial to understand the role and significance of the Conference of the Parties (COP). COP is the decision-making body responsible for monitoring and reviewing the implementation of the United Nations Framework Convention on Climate Change (UNFCCC). This annual summit brings together countries to assess progress in dealing with climate change and set global agendas for mitigating its effects.

Historical Milestones in COP

Reflecting on COP28's Outcomes

As 2023 draws to a close, it's pivotal to reflect on COP28, a landmark event in the climate action calendar. Held in Dubai, this conference was marked by significant developments:

• Shift from Fossil Fuels: The unified call for countries to reduce reliance on fossil fuels, a first in UN climate conference history.

• Renewable Energy Pledge: The commitment to triple the world's renewable energy capacity by 2030, targeting 10,000 gigawatts.

• Green Finance Commitment: The UAE's pledge of $270 billion by 2030, addressing the climate finance gap for developing nations.

• Climate Disaster Fund: A $700 million fund to support countries most vulnerable to climate disasters, focusing on losses and damages.

• Near Zero-Methane Emission Initiative: Fifty oil and gas companies committed to near zero-methane emissions by 2030.

• Technology and Innovation Focus: Emphasizing green technologies, energy efficiency, and digitalization in climate analytics.

• Inclusion of Agriculture: Over 130 countries agreed to include agriculture emissions in their climate action plans.

• Updated NDCs: Countries are requested to submit updated Nationally Determined Contributions within 15 months.

 If COP28 interests you, it's worth checking out this post

Section 2: European Sustainability and Corporate Reporting - Spotlight on CSRD and CSDDD

Before exploring the significant milestones and developments of 2023 in EU sustainability and corporate reporting, let's begin with a concise overview of the legislative process within the European Union. This process, which every legislative proposal such as the CSRD (Corporate Sustainability Reporting Directive) and CSDDD (Corporate Sustainability Due Diligence Directive) undergoes, involves several key stages. Understanding these stages will help us pinpoint where each of these directives currently stands in the legislative procedure

Corporate Sustainability Reporting Directive (CSRD)

The Genesis of CSRD: Charting a Sustainable Path

The CSRD, effective from January 2023, marks a paradigm shift in corporate reporting. It expands the scope of sustainability reporting beyond traditional methods, bringing a wider array of companies, including listed SMEs, into its ambit. This directive emphasizes transparency and responsibility in reporting sustainability matters.

Market Dynamics: Fueling Sustainability Reporting

The CSRD is driving a surge in demand for sustainability information, harmonizing standards and enhancing data quality. This trend is fostering job creation in the sustainability reporting sector.

CSRD and Financial Stability: Informing Investment Decisions

The CSRD addresses the gap in sustainability information, essential for informed investment decisions and financial stability. It aims to mitigate systemic risks by incorporating sustainability-related data into business assessments.

Beneficiaries of CSRD: Empowering Stakeholders

The CSRD benefits a wide range of stakeholders, enabling them to make informed decisions and engage in dialogues promoting sustainability. It empowers civil society and NGOs with data to hold companies accountable for their environmental and social impacts.

Reporting Standards and Assurance: Elevating Reporting Quality

Companies under the CSRD must adhere to the European Sustainability Reporting Standards (ESRS), ensuring high-quality, assured sustainability information. This move sets new benchmarks in corporate reporting. The European Sustainability Reporting Standards (ESRS) are now official! Published in the EU's Official Journal.

Transition from NFRD to CSRD: Embracing New Standards

The shift from NFRD to CSRD signifies a deeper commitment to ESG matters, with the first application of new rules scheduled for the financial year 2024. Companies are now gearing up to align with these advanced standards. If this interests you, it's worth checking out this post.

Conclusion: A Leap Towards Enhanced Transparency and Sustainability

The CSRD is a significant step towards embedding sustainability into corporate strategies, focusing on standardized reporting and assurance. It represents a move towards a corporate world that is not just transparent but also resilient and sustainable. If the CSRD interests you, it's worth checking out this post and this article.

Corporate Sustainability Due Diligence Directive (CSDDD)

The Corporate Sustainability Due Diligence Directive (CSDDD), integral to the European Green Deal, proposes transformative measures for EU companies to address human rights and environmental impacts across their global value chains. As of December 14, 2023, the CSDDD is in the pending stage, still awaiting formal approval and enactment post its significant provisional political agreement. For a more in-depth exploration of the CSDDD, I refer you to my previous article, which comprehensively covers the topic. Interested readers can find further details at the following link.

Section 3: European Sustainability and Environmental Legislation - Spotlight on Green Claims, CBAM and The ESPR

Green Claims Directive

The Green Claims Directive, proposed by the European Commission in March 2023, is a significant legislative initiative by the European Union designed to tackle greenwashing and encourage the promotion of sustainable products and services. Covering all companies within the EU that sell goods and services, its aim is to support the broader objectives of the European Green Deal and aid in establishing a circular and clean economy. After reaching a provisional political agreement in September 2023, the Directive is anticipated to receive formal adoption by the European Council and Parliament, with the process expected to conclude in early 2024.

Key Aspects of the Green Claims Directive:

1. Combatting Greenwashing: The Directive targets misleading environmental claims made by companies in advertising and product labeling, which prevent consumers from making informed choices for greener products.

2. Enhancing Transparency: It ensures that traders provide clear and understandable information about the environmental impacts of products, services, and companies, enabling informed purchasing decisions.

3. Addressing Early Obsolescence and Sustainability Labels: The Directive aims to tackle issues like greenwashing, early obsolescence, and unreliable sustainability labels.

4. Need for the Directive: With numerous ecolabels and terms like "green" and "sustainable" used without clear definitions, the Directive aims to provide clarity and prevent misleading claims that hinder informed consumer choice.

5. Compliance Measures: The Directive proposes measures like Environmental Labelling Schemes, claims verification, and penalties for non-compliance to ensure accurate environmental information.

6. Impact on Companies: It applies to all voluntary environmental claims relating to products or traders, with special considerations for microenterprises and SMEs. It also covers climate-related claims and will apply to international trade partners outside the EU.

Ecodesign for Sustainable Products Regulation (ESPR)

In a significant development for sustainable product policies, on December 5, 2023, the European Commission announced a provisional agreement regarding the Ecodesign for Sustainable Products Regulation (ESPR). This marks a pivotal moment in the EU's efforts to promote sustainable, repairable, and circular products.

Background and Impact of Current Ecodesign Directive

The Ecodesign Directive 2009/125/EC, focusing on 31 product groups, significantly saved energy and costs in the EU. In 2021, it led to a 10% reduction in annual energy consumption for covered products, saving EUR 120 billion in energy expenditures.

The Proposal for ESPR

• Published on 30 March 2022, ESPR aims to expand the scope of the Ecodesign Directive to cover a broader range of products beyond those related to energy.

• It establishes a framework for setting ecodesign requirements for specific product groups to enhance their circularity, energy performance, and other environmental aspects.

Key Aspects of ESPR

• ESPR will address product durability, reusability, reparability, presence of substances affecting circularity, energy and resource efficiency, recycled content, remanufacturing, recycling, carbon and environmental footprints.

• The regulation introduces information requirements, including the Digital Product Passport, to provide transparency on products’ environmental sustainability.

• By 2030, ESPR could lead to significant energy savings, equivalent to EU’s import of Russian gas.

The Digital Product Passport

The passport will offer easily accessible information about products’ sustainability, including durability, reparability, recycled content, and availability of spare parts. It aims to assist consumers and businesses in making informed purchasing decisions and facilitate repairs and recycling.

Ecodesign from an International Perspective

ESPR will apply to all products in the EU market, regardless of the place of production. It will comply with international trade rules and involve collaboration with partner countries to enhance product sustainability. The Digital Product Passport is part of this effort to foster greener trade and reduce costs for sustainable investments.

Carbon Border Adjustment Mechanism (CBAM)

The first-ever carbon tariff is rolled out by the European Union: A tool to put a fair price on the carbon emitted during the production of carbon intensive goods that are entering the EU

The CBAM verifies carbon fees for imports, aligning them with domestic levels, ensuring EU climate goals are maintained

Importers will have to report at the end of each quarter emissions embedded in their goods subject to CBAM without paying a financial adjustment, giving time for the final system to be put in place.

The transitional period, combined with the gradual phasing-in of CBAM between 2026 and 2034, will allow for a careful, predictable and proportionate transition for EU and non-EU businesses as well as authorities. Over a period of eight years, CBAM will also gradually replace the free allowances given under the EU Emission Trading System (ETS). In this way, CBAM will be an important incentive for EU producers to reduce emissions. Importers will start paying the CBAM financial adjustment in 2026

Section 4: Sustainability Insights: 2023's Selected News

• The ozone layer is on track to recover within four decades.

• Electric Vehicles Hit Record Sales in 2023: US, China, and Europe Lead Global EV Surge.

• Significant Progress in Brazilian Amazon: Deforestation Rate Drops by 22.3%.

• China Dominates Global Renewable Market with Record 230 GW Wind and Solar Installations in 2023.

• This year, investment in the climate tech sector saw a significant surge, drawing $16.6 billion in investment in just the third quarter.

• European Council to Regulate ESG Ratings: A Step Toward Enhanced Transparency and Reliability in Sustainable Finance.

• The first science-based targets for nature (SBTN).

• Upholding indigenous rights in Brazil.

• Historic High Seas Treaty: Landmark Agreement to Protect 30% of Global Oceans by 2030.

• UNEP and several partners launched the Freshwater Challenge.

My Favorite for this Week

Books 📒

Show your work by Austin Kleon

Show Your Work!" by Austin Kleon resonated with me on a personal level, offering a refreshing perspective on creativity and sharing. Kleon's message is clear and empowering: you don't have to be a seasoned expert or a recognized genius to share your work and ideas with the world. Embracing your status as an amateur is not just okay; it's a powerful stance in a world that often overemphasizes expertise.

Personal Reflections on Key Ideas from "Show Your Work!":

1. Demystifying the Genius Myth: Kleon's dismantling of the solitary genius myth struck a chord with me. It's a reminder that creativity thrives in a community, not in isolation. Sharing your work is an invitation to others to join your journey, offering critique, collaboration, and expansion.

2. The Strength in Being an Amateur: Kleon’s encouragement to embrace our amateur status is liberating. It's about acknowledging that not knowing everything is not a weakness, but an opportunity for growth and connection. This perspective has helped me to share my own learning journey more openly, finding inspiration and solidarity in the shared experiences of others.

3. The Power of Documenting Your Journey: Kleon advocates for sharing the process, not just the product. This idea has inspired me to document my own creative journey, sharing the struggles and interim steps. It’s about showing the real, unpolished progress, making the creative process more relatable and authentic.

4. Learning by Teaching: The concept of sharing what you know, even if it feels incomplete, is a powerful tool for learning. It's about contributing to the collective knowledge pool and in the process, reinforcing your own understanding. This has encouraged me to share my insights more freely, enhancing my own learning and hopefully aiding others.

5. Fostering a Community: This idea has been a game-changer for me. Sharing your work and knowledge naturally cultivates a community. It’s about creating a space for mutual support, feedback, and shared growth, which I’ve found to be invaluable in my own journey.

6. The Cycle of Continuous Learning and Sharing: Kleon’s emphasis on the ongoing nature of creating and learning resonates deeply. It’s a cycle of perpetual growth, where sharing becomes a crucial part of the learning process, benefiting not just the individual but the community at large.

"Show Your Work!" is more than just a book for me; it’s a manifesto that has shaped how I approach my creative endeavors. It’s about embracing vulnerability, engaging in continuous learning, and cherishing the communal aspect of creativity. This book has been a guide in making my creative process a part of my personal narrative and leveraging the collective intelligence and warmth of the community around me.