Key highlights from November 2024 in the sustainability space.
1- COP29: Key Developments and Controversies
COP29, held in Baku, Azerbaijan, from November 11–22, 2024, began under scrutiny due to the host country’s petro-state status, echoing last year’s controversies in the UAE. Azerbaijan’s president sparked further criticism on November 12 with his remarks calling oil and gas a “Gift of God.” Midway through the conference, experts published an open letter to the UN denouncing COP’s effectiveness and calling for reform, fueling debates on the relevance of the process.
Despite this, the conference achieved significant milestones. Developed nations committed to providing $300 billion annually by 2035 to help developing countries combat climate change, though the pledged amount falls far short of the $1.3 trillion needed. Additionally, the finalization of Article 6 of the Paris Agreement established international standards for trading carbon credits, projected to save $250 billion annually while mobilizing investments for emissions reduction.
2- ISO Launches New ESG Implementation Principles
At COP29 on November 15, the International Organization for Standardization (ISO) unveiled its ESG Implementation Principles, a framework aimed at standardizing ESG reporting and practices across organizations and jurisdictions. Developed in collaboration with over 1,900 experts from 128 countries, the principles set measurable Key Performance Indicators (KPIs) to evaluate organizations’ ESG maturity. They also prioritize interoperability by aligning with existing reporting standards to create a harmonized global approach to ESG compliance.
The initiative has garnered attention for its potential to address inconsistencies in ESG reporting, a challenge for multinational organizations navigating diverse regulatory environments. By fostering more transparent and comparable disclosures, the ISO Principles aim to bridge gaps between regional standards, enabling more effective implementation and oversight of ESG commitments across borders.
3- Singapore Joins EU-China Common Ground Taxonomy
On November 14, 2024, the International Platform on Sustainable Finance (IPSF) expanded its Multi-Jurisdiction Common Ground Taxonomy (M-CGT) to include Singapore alongside the EU and China. Building on the existing EU-China Common Ground Taxonomy, the M-CGT integrates Singapore’s sustainable finance criteria, enhancing interoperability across these three major jurisdictions. This harmonization aims to streamline cross-border green financing and provide a reference framework for stakeholders to compare sustainability standards.
The M-CGT is structured for scalability, with the potential to incorporate additional jurisdictions in the future. By aligning taxonomies across regions, the initiative represents a step toward a more unified approach to sustainable finance, creating opportunities for global investments in green projects while accommodating regional specificities.
4- ISSB Standards Gain Global Momentum
A progress report by the IFRS, released on November 12, 2024, reveals that over 1,000 companies and 30 jurisdictions, representing more than half of global greenhouse gas emissions, are now using or moving to adopt ISSB Standards. This includes recent commitments from 16 new jurisdictions, such as Kenya, El Salvador, and Australia, marking a significant increase from the 20 jurisdictions on board in May 2024.
The widespread adoption of ISSB Standards signals growing global alignment on sustainable finance regulations. By providing a consistent framework for climate-related financial disclosures, the ISSB is fostering greater transparency and comparability in sustainability reporting, building optimism for more cohesive and effective global climate action.
- Content prepared with the help of Defne Fresko Tasci.