Twenty-twenty four is well underway and it’s already clear nature will be one of the critical factors for corporates to consider through the year - and for many businesses, likely to be at the top of the list.
Shifting regulatory demands across the region, outcomes of the recently completed COP28, and a growing awareness around the impact of corporate activity on our natural environment all mean businesses will need to be aware of their own impact on nature in the future.
Investors are also becoming more educated around nature dependencies in specific sectors, and business will need to consider this in their strategies moving forward.
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A key theme of discussion that emerged from COP28 in December was the continuing energy transition around the globe, and this is expected to again be relevant though 2024.
Commitments made by participants at COP were substantial, and, alongside the ongoing impact of the US Inflation Reduction Act, will continue to affect markets throughout the year.
Looking closer at markets, particularly bonds, we saw a resurgence in interest from participants in the ESG format in 2023 – with activity in the Philippines and China, to list just two - and that’s something that could continue in the region through the remainder of 2024.
Businesses will also need to keep a close eye on policy and regulatory developments in the sustainability space through the year. This is an area that will continue to grow.
Policy and regulation are areas of the market that will continue to grow in momentum. We're seeing mandatory disclosure regimes coming into force in New Zealand in 2024, while in Australia, the government has released a consultation paper on its sustainable finance strategy, including proposed disclosure obligations.
Expect all this activity to be an ongoing theme in 2024.
Katharine Tapley is Head of Sustainable Finance at ANZ
