The Corporate Sustainability Reporting Directive (CSRD), which officially came into effect on 1 January 2024, is now reshaping how companies embed sustainability across operations, governance, and financial disclosure. With the first reporting cohort beginning in 2025, CSRD stands out as a landmark regulatory milestone—not only in Europe but globally. It has accelerated the convergence of sustainability with strategic, legal, and financial decision-making and prompted a reevaluation of how sustainability functions are structured and empowered within corporations.
For Chief Sustainability Officers (CSOs) and their teams, this is more than a compliance exercise—it signals a redefinition of role, influence, and expectations. Below, we outline five defining trends and operational shifts that will shape the sustainability landscape in 2024.
1. ESG Data Collection Returns to First Principles
CSRD has reset the focus on foundational ESG data governance. The new European Sustainability Reporting Standards (ESRS) demand a level of rigour far beyond that of legacy frameworks like GRI. In particular, the double materiality principle introduces new thematic domains, requiring granular data quality, traceability, and cross-functional collaboration.
In 2024, CSOs are expected to lead enterprise-wide ESG data mapping efforts—identifying data owners, establishing protocols, and defining quality standards. The good news: CSRD has catalysed senior executive support, particularly from finance and risk functions, turning ESG data compliance from a siloed task into a strategic imperative.
2. A New Role Emerges: The ESG Controller
As sustainability reporting moves closer to the standard of financial reporting, a new profession is emerging: the ESG controller. These professionals are tasked with establishing ESG data provenance, governance, and audit trails—applying principles familiar in finance to ESG disclosure.
From reconciling GHG figures with ERP systems to ensuring alignment with ESRS definitions, ESG controllers will play a pivotal role in internal controls. For the first 1–2 years of CSRD implementation, this will be a full-time role—until systems and processes are automated and embedded across reporting cycles.
3. The Scrutiny of ESG Claims Will Intensify
2023 marked a turning point in regulatory litigation against unverified sustainability claims. In 2024, companies will need to audit every claim made on websites, packaging, investor documents, and marketing materials. Governance over external ESG communication will require new protocols and, in many cases, legal oversight.
We expect fewer but more substantiated sustainability claims. Organisations that cannot back their claims will likely de-risk by reducing public statements—potentially losing brand equity. Meanwhile, those with verifiable impact and robust data will gain market trust and stakeholder loyalty.
4. Sustainability Budgets Will Expand—But So Will Accountability
Sustainability budgets will increase significantly in 2024, both in operational and capital expenditure. This includes:
- Personnel and consulting costs
- Technology stack development
- Assurance and audit requirements
- Investments in decarbonisation and climate adaptation strategies
For organisations committed to net zero without reliance on offsets, CSOs must reevaluate costed roadmaps in areas such as electrification, fuel switching, regenerative agriculture, circular economy initiatives, and product redesign. Crucially, sustainability leaders must partner more closely with CFOs to integrate sustainability investment into annual corporate budgeting cycles.
5. The ESG Vendor Landscape Will See Greater Discipline
As sustainability becomes more embedded—and more expensive—CSOs will apply greater scrutiny to ESG solution providers. This includes reassessing:
- External consultants vs. in-house capability building
- Voluntary certifications (e.g., SBTi, B-Corp)
- Carbon accounting platforms and data vendors
We expect a shift toward high-specialisation service providers—particularly in life cycle analysis, impact quantification, and sector-specific environmental metrics. The commoditised ESG software market may experience consolidation, with procurement increasingly tied to tangible, auditable outcomes.
Conclusion: Toward a More Disciplined ESG Era
2024 marks the beginning of a more operational, data-driven, and strategically integrated phase in corporate sustainability. CSRD has redefined the expectations for transparency, accountability, and governance—and placed ESG squarely in the domain of enterprise risk and opportunity.
For CSOs and their teams, the coming year is not just about reporting—it’s about leadership, coordination, and credibility. The organisations that adapt early will not only meet regulatory thresholds but also gain a competitive edge in trust, capital access, and long-term resilience.
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