These trends are expected to impact a wide range of stakeholders, from companies, investors and workers to communities, regulators and policymakers. The need for stronger collaboration shines through the five key sustainability and climate trends I expect to see in 2023. They have to act quickly as ESG frameworks and standards evolve, embedding into every business process sustainability metrics that are aligned with the company strategy, said Kaplan. Knut Haanaes, Professor of Strategy and Lundin Chair Professor of Sustainability. The global trend of green buildings continues to rise even today. In the report that follows, we outline nine trends we see rising in prominence in the sustainability landscape during 2023. What is your plan to transition into the low-carbon era under different scenarios? We tend to think about collaboration as an external challenge but the key to success lies in redesigning organizations that can align incentives around impact and mobilize complementary resources to achieve it. What's Next for Sustainable Business? Intergovernmental Panel on Climate Change (IPCC) experts argue in their latest climate change mitigation report that, to mitigate climate change and avoid a rise in global temperatures over 1.5C-2.0C, offsetting carbon solutions are not enough, and urge the need for carbon-negative (or climate-positive) strategies to accelerate global economies transition towards low-carbon systems. We are the independent guide to sustainability, helping our audience cut through the noise and supporting them as they achieve sustainability goals and reach outcomes with actual business value. For any business owner, whether you own a SaaS product or any other kind of company, the climate is likely high on your agenda too. Protecting and restoring biodiversity under the Convention on Biological Diversity (CBD) has been on the agenda since 2020. Water is likely to play a central role on the global agenda in 2023 following major water-related disasters such as the floods in Pakistan and the droughts in Europe. GSSSBs will also face ongoing questions about the effectiveness of sustainable debt in helping companies reach their sustainability goals, particularly in the relatively new and growing sustainability-linked bond segment. Ecosystems & Resources: A new global biodiversity framework will set the stage for rising global scrutiny and collaboration on nature. Susan Goldsworthy, Affiliate Professor of Leadership, Communications and Organizational Change. For the same reasons, we expect that company and investor lobbying activities will come under greater scrutiny to ensure that they are consistent with public commitments to both sustainability and fiduciary mandates. Can development organizations, governments, firms and private financial institutions work together with the humanitarian sector to fill the gap? Automobile and fashion have had by far the heaviest adverse impacts on the environment and society, so actors operating in these two sectors have been ahead of the pack in reversing this trend. For this to be achieved, companies need to measure direct (scope 1) and indirect (scope 2 and 3) emissions. In that journey, many are also realizing that it is impossible to achieve net zero without looking outside of their traditional business. 2 The biodiversity challenge is closely intertwined with the climate crisis the consequences of climate change have negative consequences for the survival of vulnerable species and preserving biodiversity can help mitigate climate change. Results-based climate finance was presented by the World Bank and others as an effective method to drive financing to projects that could generate such credits. For example, the humanitarian sector is currently experiencing a $32.3bn shortfall between funding and what the UN says is needed. And the EU looks to advance its own human rights due diligence directive and regulation restricting goods made with forced labor throughout 2023. Corporate The sustainability trends in 2023 are predicted to plunge beyond eco-friendliness. These instruments will have to increasingly address investor questions about the effectiveness of targets and incentives. Also, several AI giants such as Google and Microsoft have already pledged to become carbon negative soon. By understanding and implementing these 2023 sustainability trends, restaurants can stay ahead of the curve . COP27 in November 2022 was quickly followed by the U.N.'s Convention on Biological Diversity, known as COP15. 7 sustainability trends to watch in 2023 1 In 2023, consumers will be holding brands responsible for progressing the world's state of sustainability. These include Scope 3 emissions, those which do not come from their own operations but from their larger value chain. The new generation of business owners and leaders care deeply about the environment and are striving towards more sustainable and equitable business practices. Stakeholder pressures on companies keep rising. Firms are advised to get ahead of the game and start accounting for biodiversity. The current approach to sustainability is underpinned by guilt. Climate change and associated topics such as water scarcity and biodiversity loss are likely to dominate stakeholder discussions, with long-term climate goals potentially reevaluated to address near-term urgencies. The impacts from climate change will not be evenly distributed, with lower- and lower-middle income countries more at risk than higher-income peers and less ready to cope. In 2023, we think broader market conditions will continue to influence GSSSB issuance. Although Forrester analysts expected at least 10 companies to incur $5 million or more in greenwashing fines, the longer term outlook for meaningful environmental impact is far brighter. Sustainable business is so much more than reporting carbon emissions. Otherwise, if emissions continue to rise, meeting Paris Agreement goals could entail greater and more costly decarbonization efforts. The global green, social, sustainability and sustainability-linked bond (GSSSB) market in 2022 did not reach the highs set in 2021, as rising interest rates and the risk of recession in many parts of the world sidelined debt issuers. To that end, here are the top sustainable living trends to watch in 2023. However, the need to bring citizens and workers on board with the climate-action agenda will remain a challenge. The top strategic technology trends for 2023 are: Sustainability Sustainability traverses all of the strategic technology trends for 2023. . Economic recovery after the pandemic has not been as fast as expected, while the Russian invasion of Ukraine has put extra pressure on consumer and business budgets due to supply chain and energy disruptions. The USA's Securities and Exchange Commission (SEC) has . Many companies will see an opportunity to accelerate the green energy transition, and the plans that were put in place before the war in Ukraine, as renewables become more cost competitive. Forrester expected five Fortune Global 200 firms to announce policies limiting travel for sustainability this year. The latest biodiversity COP (or COP15) in Montreal discussed this new framework, but the hard work starts now: 2023 will see rising global scrutiny and collaboration to ensure momentum towards the new nature milestones for 2030. Download this insight brief to learn about the top eight ESG and sustainability trends you should expect to see in 2022 and beyond. yk Ik, Professor of Digital Strategy and Cybersecurity. As new sustainability disclosure standards come into effect around the globe, stakeholders will have to grapple with the complexity and potential challenges regarding alignment of these initiatives. From net zero to climate-positive supply chains, Many companies are working hard to meet net-zero sustainability targetsby 2050 or other target dates. This year's forecast of sustainability trends looks like the perfect storm (in a good way) of purpose-minded, yet business opportunity-led progress. If the current trend continues, the number of disasters could rise to 560 per year by 2030, up 40% from 2015. . Discover all upcoming events for IMD alumni! Lead authors: Lai Ly, Global Head of ESG Research, S&P Global Ratings | Lindsey Hall, Head of ESG Thought Leadership, S&P Global Sustainable1 Co-authors: Bruno Bastit, Terry Ellis, Paul Munday, Bruce Thomson, and Dennis Sugrue, S&P Global Ratings; Esther Whieldon and Jennifer Laidlaw, S&P Global Sustainable1 This report neither addresses views about credit ratings on individual entities nor constitutes a rating action. Gartner researchers predicted that political bodies worldwide would support nation-state commitments to invest tens of trillions of dollars in climate mitigation from 2025 to 2035. The COP27 climate conference was a mixed bag. Plastic-Free Living It's no secret that plastic pollution is a major environmental issue. Follow this link to learn more about our cookie policy and how we use cookies. In the short term, businesses of all industries and sizes will look at energy-saving measures to reduce both costs and carbon emissions. From battery-powered cruise ships to aviation biofuel derived from microalgae. Litigation risk has also given rise to a new trend named by some as "greenhushing", whereby companies may refrain from disclosing details of their sustainability goals and practices for fear of being penalized for the information released. As it matures and evolves across asset classes and geographies, Andy Howard, Global Head of Sustainable Investment, considers the future of ESG and impact. Despite this, biodiversity, essential to sustaining natural capital and ecosystem services, is declining. 2023 CDFI Sustainable Investing Trends. Supporting organizations with talent assessment, development and leadership progression. Within three years, these analysts said ESG performance will be viewed as a top three decision factor for IT equipment purchases; over 50% of RFPs will include metrics regarding carbon emissions, material use, and labor conditions. We anticipate that some investors will increasingly check to see if companies are backing their words with actions, particularly on climate. The increasing risk of environmental, social and governance (ESG)-related litigation, including over sustainability disclosure, will be another challenge for companies and investors to navigate. The Growth Summit 2023 is taking place on 2-3 May at the World Economic Forum's headquarters in Geneva, Switzerland. We know that sustainable fashion is high on our trend predictions for 2023, but what also featured in our research was the increased use of sustainable materials. Corporate sustainability into action: Business Trends 2023 C-Suite Functional Directors Senior Executives Young Professionals December 1, 2021 "We only have a few years left to achieve the ambitious UN sustainable development goals we set out to achieve by 2030. Whether it is reducing waste, optimizing the supply chain, or eliminating emissions, insights from sustainability data can help to reach net-zero emissions. In January, Sherry Frey, VP of Wellness at NIQ hosted our annual Look Ahead Webinar covering the top wellness trends to watch in 2023. In the wake of the plastics treaty milestone, a new committee on chemicals was also set up. Many restaurants now offer compostable containers and utensils that are much more eco-friendly than traditional plastic or styrofoam. Net Zero & Energy: The recent focus on scope 3, carbon credits and carbon removal is set to accelerate. Visit our Sustainability page and Sustainability store for further insights. Julia Binder, Professor of Sustainable Innovation and Business Transformation. Victoria Kemanian, Senior Advisor, Business Transformation Initiative. Renewables and Nuclear Hold Promise for Net Zero Energy. In 2022, the European Financial Reporting Advisory Group (EFRAG), the U.S. Securities and Exchange Commission (SEC) and the newly formed International Sustainability Standards Board (ISSB) drafted various proposals for disclosure standards relating to sustainability and/or climate-related issues. Finally, our companies are transforming. The Intergovernmental Negotiating Committee (INC) will hold workshops over the course of 2023, with the aim of adopting the treaty in 2024. Building a digital ecosystem of partners offers you a powerful lever to accelerate growth. This has resulted in calls for global convergenceto support consistency and avoid confusion and additional reporting workloads for companies and investors alike. How do you inspire your team? Droughts impact major economies, including Europe, the U.S. and China, raising prices and creating potential food shortages that disproportionately impact the worlds most vulnerable communities. While policy and regulation play catch up, how will the financial sector, firms, and consumers step up to the challenge? Within three years, they said 45% of G2000 organizations will operationalize integrated sustainability in the supply chain and effectively report impact data, enabling 10% reduction in waste and improving competitive advantage. According to the REN21 renewable energy community, we globally invested $366bn in renewables in 2021 alone. As a result, we think more companies, particularly those in industries with the greatest exposure to working conditions risks, will face greater costs associated with building the systems and capacities needed to comply with new requirements. Underpinning all of the changes that are likely to take place in 2023 are various sustainable regulation packages being implemented by governments across the globe. Through this process, leaders co-create the conditions where people can flourish amidst adversity. Meanwhile there are plenty of near-term business results from the sustainability wave. Consequently, in 2023, we anticipate the durability of new employee-friendly workplace practices will be tested. Sustainable solutions can, and should, be affordable, so consumers do not struggle when seeking more conscious habits. The following issues are key in that discussion: Answering those questions and going beyond just complying with mandatory sustainability reporting standards is key to gaining and maintaining competitive advantage in the future. Our work on water stress in Jordan highlights the need for resilience. Economist Impacts Martin Koehring highlights why stronger collaboration will be required to accelerate progress in 2023, Head, World Ocean Initiative & Senior Manager, Sustainability at Economist Impact. Of particular note was how consumers are approaching healthy living in the Beauty & Personal Care category. All content is available on the global site. Company executives and boards of directors have become more attuned to the external reporting aspects of sustainability. Against a backdrop . Prodded by consumer demands and impelled by increasingly stringent regulations, the business sector has taken notice and actions to create a more sustainable future. We extract and organise ecommerce data from over 1,500 online retailers in 40 countries providing daily updates on pricing, assortment size and key attributes. By next year, IDC analysts predicted 80% of G2000 companies will capture their carbon data and report their enterprise-wide carbon footprint using quantifiable metrics compared with 50% today. In 2022, the U.S. stepped up the enforcement of laws aimed at restricting imports of goods believed to be made in whole or in part with forced labor. One of the main reasons for that is the cost-of-living crisis in many countries, exacerbated by the war in Ukraine and rising energy and food prices. In 2022, efforts to integrate ESG into corporate policies and investment decisions faced diverging pressures, either for lack of or inadequate action or for going too far. As we head out of COP27, many are disappointed to see climate deterioration going much faster than any governmental moves to address the crisis. Stphane J.G. Published: April 26, 2023 at 10:09 a.m. Expectations are growing for business to play a proactive role in driving efforts to secure a sustainable and inclusive future for the next generation. She has worked in sustainability management, consulting, and education for more than 15 years. The UK also intends to bring forward sustainability-related disclosure requirements at the entity and product level. Scope 3 typically accounts for the vast majority of emissions, so reducing those that companies have direct control over (scope 1 and 2) can only go so far in reaching net zero. In fact, only 10% of global professionals consider that their company is very effective at communicating sustainability to consumers, according to Euromonitors Voice of the Industry: Sustainability Survey 2022. But in the near term, if economic conditions continue to deteriorate and labor market resilience wanes, companies may face calls from investors to scale back more progressive workplace practices. Therefore, for companies to remain competitive and relevant in such fast-evolving sustainability environments, proactive collaboration with key stakeholders is crucial. Five key ESG Credit Trends for 2023 identified by Sustainable Fitch: 1. 5 Sustainability Trends in 2023 and Beyond 07 April 2023Save Article Save Article In recent years, sustainability has become an increasingly important issue for businesses and individuals alike. Companies have been struggling to communicate sustainability to consumers. Asia as a key supplier of fossil fuels Russia, the world's largest fossil fuels exporter in 2021, has thrown global energy markets into turmoil by its invasion of Ukraine. In addition, products carrying carbon-neutral/reduced carbon claims globally increased by 38% during 2020/2021, according to Euromonitors Sustainability Opportunity Tracker (15 countries in seven industries). The provisional agreementin the EU for new regulation for deforestation-free supply chain will mean many companies will have to better understand biodiversity risk. The market for carbon credits will continue to evolve in 2023. They are developing sustainable products and services and supply chain practices to increase revenue, satisfy investors and regulators, and improve their reputation. Transform Your Innovation Strategy with Megatrends, Earth Day 2023: Now Is the Time to Take Climate Action, Plant-Based Products Boost Sustainability in Asia Pacific, Retailer Corporate Strategies in Private Label. This includes swapping packaging materials . Urging business leaders to think further ahead, these analysts predicted a carbon flip after an intensive period of innovation in climate mitigation technologies that is already under way, to be followed by roughly 20 years of implementation for scalable solutions and replacement of carbon-based technologies.. ET. Following recent momentum, including that gathered during COP15, we believe policymakers, regulators, companies and investors will more explicitly look to factor biodiversity-related risks and opportunities into decision-making in 2023. For example, quite a few food companies cant achieve net zero without having their suppliers (farmers) planting crops that are of no use for the company supply chain, but which capture CO2. The global energy landscape shifted in 2022 with record prices and supply disruptions related to the Russia-Ukraine war. This is why specific claims such as natural, organic, and vegan enjoyed outstanding momentum during 2021, according to Euromonitors Sustainability Opportunity Tracker. These macroeconomic and market conditions could constrain issuer appetite for GSSSB offerings. Sustainability trends to look out for in 2023 Michael Wilkins on December 30, 2022 There's an unpredictable year ahead and my futuristic thinking can only pierce so far into the haze. Collaborative systemic solutions require new approaches to fragility and call for alternative sources of capital to complement traditional grant funding. However, they also face criticism because of their complexity and a continuing lack of global alignment. Track existing and future opportunities to support critical decision-making across all functions within your organisation. During COP15, the International Sustainability Standards Board (ISSB) announced that it will research the link between climate and nature. Along that path, they are now asking themselves if they could push even more and transform their supply chains to become CO. negative, going beyond net zero. To save on energy bills, firms will renovate buildings to prevent heating loss and implement digital solutions for temperature controls, shut off lighting and equipment when not in use, and replace less efficient outdated equipment. Lagging investments in the technologies and interventions needed to support adaptation are widening each year - up to $340 billion per year of adaptation finance is needed by 2030. Surely thats progress that will help us breathe a little easier and live longer. Curious about how we partner with you to help you solve your complex modern-day business problem? 25 April 2023 by Arturo Bris in Sustainability. We believe that these initiatives, among others, will serve as catalysts for greater reflection by stakeholders about the impact, risks and opportunities associated with nature and biodiversity. Regulation. In the longer term, this will likely lead to increased adoption of new types of energy and fuels. The luxury industries have continued in 2022 to accelerate innovation towards greater sustainability. By Jonny Bierman. With most models still at an experimental stage, a tougher challenge is spreading solutions globally. Environmental catastrophes are becoming more frequent, so stricter regulations, such as extended producer responsibility (EPR), and waste management and recycling policies, are expected to be seen in more markets to channel efforts towards governments long-term sustainable targets.
Theft Of Property 1st Degree Alabama,
Multi Chamber Hamster Hideout,
Calfresh Verification Documents,
Thanksgiving Dates For Next 100 Years,
Articles S