All this will require considerably more investments and capability building. Along that path, they are now asking themselves if they could push even more and transform their supply chains to become CO2 negative, going beyond net zero. The EU took a leadership position in creating the fund, but now it must be operationalised and made viable. Board members and top executives can make a choice today between just complying with the new standards and using this one-time change in mandatory reporting as an opportunity to prioritize sustainability even more as a key component of their strategies. They then write down all the things they can influence and achieve in the upcoming meeting, placing those post-it notes on the opposite wall. Photo courtesy of Unilever. In 2023, we believe sustainability initiatives could be tested by persistent inflation and economic uncertainty. Visit our Sustainability page and Sustainability store for further insights. . We anticipate that some investors will increasingly check to see if companies are backing their words with actions, particularly on climate. Can development organizations, governments, firms and private financial institutions work together with the humanitarian sector to fill the gap? It is not a question of whether, it is a question of when. By next year, IDC analysts predicted a quarter of organizations worldwide will demonstrate responsible leadership by increasing their sustainability-related digital technology spend by more than 25% from 2022 levels. Considering all these pressures, its all too easy to stumble into the ESG reporting trap. Agribusinesses are particularly sensitive to water scarcity, leading to more expensive irrigation, crop damage and weak harvests, which may raise food security and supply concerns, already exacerbated by the Russia-Ukraine war. Download Transcript (PDF, 106 KB) The large-scale trends shaping the ESG investing world have become well recognized: Climate change risk and the road to net zero, the growing existential threat of biodiversity loss, social inequalities, regulation and, lately, debate and controversy over greenwashing and what ESG should be. If the current trend continues, the number of disasters could rise to 560 per year by 2030, up 40% from 2015. Develop fully customized programs that reflect the unique opportunities and challenges of your organization. Social Sustainability: The cost-of-living crisis intensifies, but offers opportunities for more-inclusive climate action. Tackling pollution from source to sea will be increasingly important. Climate change is driving water scarcity and more severe and frequent droughts, hampering agricultural production, food supplies and economies. . Expectations are growing for business to play a proactive role in driving efforts to secure a sustainable and inclusive future for the next generation. Collaboration within and outside ecosystems in circular economy solutions is central to unlock benefits that organizations cannot achieve on their own. The three trends IEEE Standards Association (IEEE SA) expects to see in 2023 in the energy sector pertain to the following topics: changing electric infrastructure, the water-energy nexus, and more broadly, energy efficiency. Here are our top 10 sustainability trends we're expecting to see gain momentum and define sustainability in 2023: 1. We expect that 2023 will see significant attention paid to adaptation and resilience financing. Many corporate leaders find sustainability also helps deepen their organizations sense of purpose to engage and retain a new generation of employees. 2023 Euromonitor is privately owned & trademarked. Despite goods and services prices increasing globally, consumers sustainability awareness remains strong, with two thirds of global consumers worried about climate change, and also willing to play their part to positively impact the environment. Environmental, social, and corporate governance (ESG) standards and regulations are becoming a dominant force in how organizations operate, touching every part of the business. The sustainability trends in 2023 are predicted to plunge beyond eco-friendliness. In the longer term, this will likely lead to increased adoption of new types of energy and fuels. 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. As we become more aware of the impact our actions have on the environment, there is a growing need to find ways to operate in a more sustainable way. Net Zero & Energy: The recent focus on scope 3, carbon credits and carbon removal is set to accelerate. All Trends Business Sustainability Our hand-picked collection of the top sustainability trends of 2023 & 2022. 2. Stphane J.G. Our premier, award-winning syndicated market research database provides detailed data and analysis on industries, economies, countries and consumers across 781 cities, 210 countries.. But actions speak louder than wordsand progress in areas such as food sustainability and reversing deforestation has been mixed over the past year. With Scope 3 emission regulations on the rise, organizational leaders have realized the competitive value of connected data to track, report, and reduce climate impact. In 2022, McKinsey & Co. found that while total compensation remained important, other factors, including workplace flexibility and meaningfulness of work, have become more instrumental in many workers decisions to stay at or leave a job. We also think attention will shift to water ahead of the inaugural U.N. Water Conference in March 2023, where governments and other stakeholders will review the objectives of the International Decade for Action on Water for Sustainable Development, 2018-2028. In the report that follows, we outline nine trends we see rising in prominence in the sustainability landscape during 2023. Otherwise, if emissions continue to rise, meeting Paris Agreement goals could entail greater and more costly decarbonization efforts. That said, we believe developing countries can only sustain so much debt to finance rising losses and lost revenues from physical climate risks. featured The goal is to agree on a post-2020 global biodiversity framework that builds on the Strategic Plan for Biodiversity 2011-2020. Several initiatives, such as the Global Reporting Initiative and ISSB collaboration or Net Zero Guidelines from the International Organization for Standardization, may play a role in harmonizing the various standards. 2 In addition to more grants, concessional loans and equity, we foresee growing interest in innovative financing instruments, including debt-for-climate swaps, where debtor countries divert payments into adaptation and resilience projects and dedicated adaptation and resilience bonds. Gartner researchers said the ability to efficiently navigate the global regulatory environment and scale compliance systems will offer companies a significant competitive advantage. Despite this, biodiversity, essential to sustaining natural capital and ecosystem services, is declining. Circular Economies: There will be momentum on tackling plastic and chemical pollution. This interconnected challenge presents a timely opportunity for companies that are getting serious about ambitious climate targets to account for nature and biodiversity protection in their climate targets as a means to net zero. Here is a preview of a few of Forrester's 2023 predictions for sustainability: Carbon offsets and credits will be back in fashion but with less fraud. Through this process, leaders co-create the conditions where people can flourish amidst adversity. But there are also reasons to be optimistic. 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. 2022 was a hot year for the climate. This includes swapping packaging materials . Carlos Cordon, Professor of Strategy and Supply Chain Management. 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. Unlock your purpose and create positive, lasting change in your career, organization and society. In 2023, we believe more investors and companies will seek to assess the social and financial costs associated with water scarcity and droughts. New regulations drive sustainability strategy. 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 important theme will continue into 2023, with the annual meeting of the World Economic Forum in Davos focusing on Co-operation in a Fragmented World. 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. These include Scope 3 emissions, those which do not come from their own operations but from their larger value chain. Natalia Olynec is the Chief Sustainability Officer at IMD, where her work focuses on research, program development, strategy, governance, reporting and advisory. A total of 60% of family businesses with strong digital capabilities, surveyed by PwC in 2021, placed sustainability at the core of their daily operations. Although Forrester analysts expected at. Taking a stack of post-it notes, team members write down all the things that are concerning them from their personal and professional perspectives. In addition, ESG investors and rating agencies are holding firms accountable for their sustainability records. In the longer term, this will likely lead to increased adoption of new types of energy and fuels. 2023 CDFI Sustainable Investing Trends. Didier Cossin, Professor of Governance and Finance, Founder and Director of IMD Global Board Center, Sophie Coughlan, Associate Director, IMD Global Board Center. 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. Join Team IMD. esgSubNav, Discover more about S&P Global's offerings, we think that adaptation will become as material as climate transition, call at COP27 for multilateral development banks. According to new NielsenIQ survey data, 46% of consumers are looking to brands to take the lead on creating sustainable change. Around 70% of global professionals mentioned their companies face at least some pressure from competitors, governments, and consumers, according to Euromonitors Voice of the Industry: Sustainability Survey 2022. 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. Download this insight brief to learn about the top eight ESG and sustainability trends you should expect to see in 2022 and beyond. 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. Though geopolitical conflicts, inflation and the effects of climate change continue to pose risks to supply chain operations, there are indications that the supply chain disruptions of recent years may be easing. Powerful business networks. Therefore, for companies to remain competitive and relevant in such fast-evolving sustainability environments, proactive collaboration with key stakeholders is crucial. April 13, 2023. 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. Not only are they asking those questions, but they are also planning how to pay back the CO2 debt that the company has created since its creation. With all the regulatory changes ahead, 2023 will be a year dominated by managing ESG risks. Consumers still want to positively impact the environment, and expect companies to play their part in democratising sustainability; therefore, understanding the sustainability landscape will help companies to identify risks and seize new opportunities. Victoria Kemanian, Senior Advisor, Business Transformation Initiative. Grow your network and explore the latest thinking on todays critical business challenges and opportunities. Sustainability Conferences to attend in 2023. With challenges such as global economic, The pandemic, cost-of-living crisis and high inflation continue to have an unprecedented impact on affluent consumers, their wealth, and their shopping habits. 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. These trends are expected to impact a wide range of stakeholders, from companies, investors and workers to communities, regulators and policymakers. Access and download reports and data purchased through Euromonitor.com. They are developing sustainable products and services and supply chain practices to increase revenue, satisfy investors and regulators, and improve their reputation. Our work on water stress in Jordan highlights the need for resilience. Promoting a strong employee experience can contribute to sustained competitiveness over the long term. Published May 1, 2023 + Follow As the world continues to grapple with environmental and social challenges, sustainable finance is becoming increasingly important. 1. Forrester expected five Fortune Global 200 firms to announce policies limiting travel for sustainability this year. 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. In 2023, we think continued geopolitical turmoil, persistent inflation, looming recession and worsening physical impacts of climate change will create new tensions between managing near-term risks and making meaningful progress on longer-term sustainability goals. Regulatory trends point to a hardening of what were largely voluntary frameworks for how companies manage human rights in their upstream operations. Take a scroll through our 2022 Annual and Sustainability reports. 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. At COP15, the 2022 UN conference on biodiversity, leaders decided on our collective goals for the post-2020 global biodiversity framework and businesses. By circulating products and materials, eliminating waste, and regenerating nature, circular models can help businesses to overcome some of the barriers to investment in sustainability, such as high costs, lack of internal knowledge, and implementation difficulties. Yet only 21% believe that their organizations are very ready to address such issues. yk Ik, Professor of Digital Strategy and Cybersecurity. Here are the top 5. 1. A personalized transformation journey that teaches you how to unlock the full potential of your leadership. Storytelling and expertise from marketers, SAP BrandVoice: Green Customer Experiences Drive Ongoing Growth For Midsize Businesses. 25 April 2023 by Arturo Bris in Sustainability. A risk-focused mindset could be preventing businesses from developing the ambitious strategies they need to capitalize on the opportunities of sustainability 28 March 2023 by Etelle Higonnet in Sustainability. Were seeing customers replace time-consuming, inaccurate manual approaches with a holistic steering and reporting solution like SAP Sustainability Control Tower. Learn more about incorporating sustainability into your business operations to help create a future with zero emissions, zero waste, and zero inequality. The topics in this report on today's emerging sustainability trends are selected for their high growth across sites including Google, TikTok, Instagram, Reddit, Twitter, YouTube, and Amazon. The MarketWatch News Department was not involved in the creation of this content. This will continue in 2023 as prioritizing efficiency and waste reduction remains on the leading edge of industry trends and innovations. The challenges of transitioning to the circular economy are such that one single actor cannot tackle them alone. 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. The call at COP27 for multilateral development banks to scale up the use of blended finance to attract more private capital, and the push to boost adaptation finance, will underscore how GSSSBs can contribute to closing the climate finance gap. Apr 26, 2023 (3BL Media via . These trends are expected to impact a wide range of stakeholders, from companies, investors and workers to communities, regulators and policymakers. Apr 26, 2023 (The Expresswire) -- 2023-2030According to our Latest Research,Sustainability Reporting Software . 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. This interconnected challenge presents a timely opportunity for companies that are getting serious about ambitious climate targets to account for nature and biodiversity protection in their climate targets as a means to net zero. With this in mind, we think that adaptation will become as material as climate transition in terms of protecting lives, assets and the productive capacity of the economy over time. Source: Euromonitors Voice of the Industry: Sustainability Survey 2022. Sustainability and ESG in 2023. There is unanimous agreement that 2023 will be a challenging year across global markets. 7 sustainability trends to watch in 2023 1 In 2023, consumers will be holding brands responsible for progressing the world's state of sustainability. For 2023, IMD experts have identified a series of sustainability trends that will drive further business transformation to create value, manage risks, and reconfigure industries and entire systems to ensure we respect our planetary boundaries and create a more inclusive and resilient economy. Ecosystems & Resources: A new global biodiversity framework will set the stage for rising global scrutiny and collaboration on nature. What's Next for Sustainable Business? In the short term, businesses of all industries and sizes will look at energy-saving measures to reduce both costs and carbon emissions. At any given time, we have at least one million green startups exploring new energy solutions. Finally, our companies are transforming. On the other hand, the target of limiting the rise in global temperatures to 1.5 degrees Celsius above pre-industrial levels is barely alive. 5 Major Sustainability Trends For 2023 By Rachael O'Flaherty Sustainability requires us to reduce our impact on climate change in every way possible. The IMD Alumni Network is a widespread but close-knit global community in a tightly interconnected and complex business environment. However, companies need to back-up their announcements and messages on certified claims, considering upcoming stricter regulation, as governments and savvy consumers are demanding transparency and accountability. I have ordered these by the five pillars of Economist Impacts Sustainability Project: Net zero is the ambition to reduce greenhouse-gas emissions as much as possible towards zero, and to counter any remaining emissions with carbon-negative solutions, whether nature-based (for example, planting trees or restoring mangroves) or technological (such as direct air capture). In fact, a recent study by McKinsey estimated that the transition to net zero alone will provide business opportunities of $12trn per year. In a recent Gartner survey, CEOs reported that environmental and social changes are now a top three priority for investors, after profit and revenue. Amanda Williams,Term Research Professor and Research Fellow. At COP15, the 2022 UN conference on biodiversity, leaders decided on our collective goals for the post-2020 global biodiversity framework and businesses advocatedfor mandatory biodiversity assessments and disclosures by 2030. Private-public alignment is necessary to accelerate the transition towards circular models. 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. We believe that dynamic could change as companies adjust in the face of economic uncertainty and changing labor market dynamics. 1) Changing Electric Infrastructure In fact, 57% of global professionals mentioned their company is planning to develop products with carbon-neutral claims, according to Euromonitors Voice of the Industry: Sustainability Survey 2022, fielded January 2022. Be a part of a pioneering community. Corporate Fundamentally, if we take a long-term perspective, we will deal with climate change. Beyond capturing new markets, transforming your business towards sustainability is also a way to address changing customer and investor needs, as well as to attract and retain talent.
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