sustainability trends 2023 sustainability trends 2023

The top strategic technology trends for 2023 are: Sustainability Sustainability traverses all of the strategic technology trends for 2023. Take a scroll through our 2022 Annual and Sustainability reports. We also note that some regulators and central banks have already made the case as to why and how financial institutions should respond to rising risks and biodiversity losses. At COP15, the 2022 UN conference on biodiversity, leaders decided on our collective goals for the post-2020 global biodiversity framework and businesses. The EU Taxonomy came into force in 2020 but its first reporting provisions applied in 2022, and further disclosure requirements related to the Sustainable Finance Disclosure Regulation (SFDR) for financial market participants will become effective in 2023. Stphane J.G. These new rules and disclosure standards aim to enhance transparency and consistency on sustainability-related issues and mitigate the risk of misrepresentation, perceived as greenwashing, in financial markets. Regulatory trends point to a hardening of what were largely voluntary frameworks for how companies manage human rights in their upstream operations. While policy and regulation play catch up, how will the financial sector, firms, and consumers step up to the challenge? Download this insight brief to learn about the top eight ESG and sustainability trends you should expect to see in 2022 and beyond. 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. It simplifies data visibility, allowing companies to record, report, and act on quality data across the value chain with built-in assurance and audit capabilities.. That is the hardest part, as usually 90-99% of a companys greenhouse gas emissions are Scope 3. 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. They are developing sustainable products and services and supply chain practices to increase revenue, satisfy investors and regulators, and improve their reputation. 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. We forecast that total global bond issuance will increase modestly in 20231 as rate rises subside, but inflation risks remain, and global growth is set to stagnate or even tip into recession in some regions. Progress on ESG goals can be encouraged by aligning compensation policies to the long-term impact that organizations have on financial, social, and environmental value creation. That is the hardest part, as usually 90-99% of a companys greenhouse gas emissions are Scope 3. Or learn more about our privacy policy and how we use and store your data. But we need to look beyond short-term benefits and keep an eye on the long-term implications of scaling AI too. Firms around the globe are shifting their focus on sustainability from talk to action. Many report feeling overwhelmed, experiencing increasing anxiety, frustration and irritability, as organizations face a multitude of challenges in a world dealing with ecological collapse, biodiversity loss, social division and economic decline. 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. 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. Build your core leadership skills, accelerate your career and harness your full potential as a leader. One such law, the German Supply Chain Due Diligence Act, goes into effect in January 2023 and requires covered companies to conduct human rights and environmental due diligence to identify risks, remedy issues and establish grievance mechanisms, among other things. There is an urgent need for private capital to enter frontier markets to help solve systemic grand challenges. Empowering senior teams to identify opportunities for growth and transformation. Follow this link to learn more about our cookie policy and how we use cookies. Another trend in sustainability that's gaining traction in restaurants is eco-friendly packaging. 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. One simple exercise can be powerful in creating a more inclusive, productive environment. 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. 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. ET. Here are five of the hottest sustainability trends they identified, as well as how you can prepare for them. Finnair Chairman Jouko Karvinen values age and background diversity as part of the airlines emphasis on sustainability, shifting the scope of the dynamics and the discussion in the process. There is plenty of room for penetration in most markets, as the share of digital shelf remains low. Develop fully customized programs that reflect the unique opportunities and challenges of your organization. The picture looks especially complicated in Europe, where new investment in liquefied natural gas and a slower phaseout of coal could challenge decarbonization plans. 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. A personalized transformation journey that teaches you how to unlock the full potential of your leadership. Here are the top 5. Money matters are also driving sustainable business norms. At COP27 countries finally made progress on establishing a framework for a Global Goal on Adaptation (GGA). Mind the ESG reporting trap! In that publication, we suggested 2021 . Consequently, in 2023, we anticipate the durability of new employee-friendly workplace practices will be tested. 2023 CDFI Sustainable Investing Trends. 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. Some sectors, including utilities, oil and gas, and agribusiness, are more exposed to water stress than others and will face greater operating and financial challenges. Source: Euromonitors Voice of the Industry: Sustainability Survey 2022. Go on - they only take five minutes. In 2022, Cartier and Kering formed the Watch & Jewellery Initiative 2030 which, like the Fashion Pact, aims to drive progress on sustainability in its sector. Only 18% of global respondents mentioned they are currently investing or planning to invest in supporting their suppliers to decrease carbon emissions, according to Euromonitors Voice of the Industry: Sustainability Survey 2022 , fielded January 2022. How do you incentivize the C-level and senior managers? Stakeholder pressures on companies keep rising. 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. An unprecedented level of co-operation and solidarity is now required to unleash the funds potential. Established under the Paris agreement, the GGA aims to create an adaptation equivalent to the global mitigation goal of limiting the global temperature rise to 1.5C. Apr 26, 2023 (The Expresswire) -- 2023-2030According to our Latest Research,Sustainability Reporting Software . New regulations drive sustainability strategy. When: April 28 Where: Cambridge, Mass., and virtual Cost: $12.51-$138.43 Where to register: https://sustainabilitysummit.mit.edu The MIT Sustainability Summit is a student-run event to demystify carbon markets for aspiring and current leaders. It will likely grow even more, especially in most of North America, Europe, and in fast-growing countries in the Asia-Pacific region and the Middle East. Collaboration within and outside ecosystems in circular economy solutions is central to unlock benefits that organizations cannot achieve on their own. With all the regulatory changes ahead, 2023 will be a year dominated by managing ESG risks. We expect that 2023 will see significant attention paid to adaptation and resilience financing. Unlock your purpose and create positive, lasting change in your career, organization and society. During COP15, the International Sustainability Standards Board (ISSB) announced that it will research the link between climate and nature. Moving to a cloud service provider that has made such commitments may help organizations reduce their own carbon footprint as well! Five key ESG Credit Trends for 2023 identified by Sustainable Fitch: 1. In January, Sherry Frey, VP of Wellness at NIQ hosted our annual Look Ahead Webinar covering the top wellness trends to watch in 2023. Building a digital ecosystem of partners offers you a powerful lever to accelerate growth. Considering all these pressures, its all too easy to stumble into the ESG reporting trap. 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. While there is a degree of technical knowledge required, including integrated reporting methodologies and disclosure, there is the risk of a tick-box compliance focus that does not lever a real ESG identity. Apr 26, 2023 (3BL Media via . 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. A series of workshops under the Glasgow Sharm El-Sheikh Work Programme (GlaSS) during 2023 aims to pave the way for adoption of the framework at COP28 in Dubai in late 2023. Collaboration between government, financiers and innovators will be key to scale up these solutions. However, meeting these objectives will require actors to undergo organizational transformation: NGOs will need to be receptive to more market-based approaches, governments will need to provide stable policies and backstop the riskiest initiatives, development finance institutions will need to identify opportunities to provide additionality (i.e., focus on interventions that would have not occurred without their participation), and corporates will need to be willing to collaborate with traditional non-market actors. Vanina Farber, elea Professor of Social Innovation, Patrick Reichert, Term Research Professor and Research Fellow. 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". 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. 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. 2. 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. Gartner researchers said that customer expectations around environmental and social sustainability will apply to the entire product life cycle, predicting that buyers will speak with their wallets by purchasing only from companies and suppliers that demonstrate authentic achievement of commitments. The firm found that 67% of organizations intend to hold supply chain leaders accountable for defined environmental and social sustainability KPIs. With Scope 3 emission regulations on the rise and continuously changing, organizational leaders have realized the value of connected data to track, report, and reduce climate impact. Taking a stack of post-it notes, team members write down all the things that are concerning them from their personal and professional perspectives. 27 April 2023 by Frederic Barge, Karl Schmedders in Sustainability. Harnessing collaboration to enable the circular economy, Successful examples include multi-stakeholder platforms like the. At Economist Impact we will continue to create momentum for building a sustainable ocean economy, at our World Ocean Summit in February/March and through the World Ocean Initiative. But while the costs of deploying solar have increased, these should start declining and have been relatively small compared to European natural gas price increases, which have risen nearly eight times higher over the past two years. Didier Cossin, Professor of Governance and Finance, Founder and Director of IMD Global Board Center, Sophie Coughlan, Associate Director, IMD Global Board Center. All this will require considerably more investments and capability building. Affordable sustainability There is unanimous agreement that 2023 will be a challenging year across global markets. 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. Published: April 26, 2023 at 10:09 a.m. At the wake of the conflict that has stirred markets, Eco-Business rounds up six trends that could influence global sustainability in 2023. Powerful business networks. A fully online experience that takes you on an in-depth exploration of topics that matter to you. 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. In 2023, we believe more investors and companies will seek to assess the social and financial costs associated with water scarcity and droughts. 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. 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. The sustainability trends in 2023 are predicted to plunge beyond eco-friendliness. This was billed as the first Africa COP, and a focus on developing-country issues, as well as the agreement on loss and damage, illustrated the vital need for inclusive communities and considering the impact of climate on the most vulnerable communities. At any given time, we have at least one million green startups exploring new energy solutions. This research is based on feedback from analysts and researchers across S&P Global. For example, integrating ESG standards faces some opposition in the U.S., while in Europe and Asia, there are calls for greater action through regulations and public commitments. Key insights such as 'The Future of Jobs' report will map . 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. By their nature, they process huge amounts of data, and all those data centers carrying out storing and processing tasks require a lot of energy for cooling. Join Team IMD. Gartner researchers said that by 2027, 50% of the top 10 consumer goods manufacturers will have digital product passports for at least one of their product categories. 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. More than 40,000 species are at risk of extinction in the coming decades, according to the UN progress report on the Sustainable Development Goals released in July 2022. In the report that follows, we outline nine trends we see rising in prominence in the sustainability landscape during 2023. The MarketWatch News Department was not involved in the creation of this content. In the US, the SEC is slated to enact more ESG regulations for investors, while the UK Plastic Packaging Tax is expected to transform global supply chains worldwide. 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. 5 Sustainability Trends for Businesses in 2023. 2022 was a hot year for the climate. Under increasing SEC scrutiny, Forrester analysts expected public companies to anchor their sustainability goals with corporate policies aimed at driving environmentally sustainable behavior. IDC analysts predicted that by 2026, regulations and sustainability-linked lending will drive over 60% of global manufacturers to adopt product carbon footprint as a key metric to operationalize sustainability beyond reporting. 2023 Post-filing season update; Electric vehicle federal tax credit rules tightened as of April 18, 2023; The 2023 Global Sustainable Development Report will be launched as the world approaches the half-way point of the 2030 Agenda and struggles to rebuild in the aftermath (or in the midst) of the COVID-19 pandemic. 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. Discover our campus locations in Switzerland and Singapore. For example, the ocean and food systems had their own dedicated pavilions. Learn more about incorporating sustainability into your business operations to help create a future with zero emissions, zero waste, and zero inequality. 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. Many companies are working hard to meet net-zero sustainability targetsby 2050 or other target dates. 2023 Euromonitor is privately owned & trademarked. Confrontation was always seen as an essential weapon for campaigners, but a new era of cooperation is proving equally effective. COP27 in November 2022 was quickly followed by the U.N.'s Convention on Biological Diversity, known as COP15. Otherwise, if emissions continue to rise, meeting Paris Agreement goals could entail greater and more costly decarbonization efforts. Victoria Kemanian, Senior Advisor, Business Transformation Initiative. Setting up a loss and damage fund at COP27 was only the first step. Storytelling and expertise from marketers, SAP BrandVoice: Green Customer Experiences Drive Ongoing Growth For Midsize Businesses. She has worked in sustainability management, consulting, and education for more than 15 years. All too often, companies and business leaders are not getting any insights from ESG analyses, as they approach ESG reporting solely as a required disclosure exercise. 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. 1. This shift has been fueled by increasing energy insecurity, rapidly changing regulatory and reporting standards, and investor appetite for environmental, social and governance (ESG) performance. According to Deborah Kaplan, global head of sustainability at SAP Customer Success, corralling and understanding tons of disparate data is the biggest challenge for organizations regardless of where they sit on the sustainability preparedness spectrum. I by IMD is produced by the Institute for Management Development, Unleashing the Power of Data and Digital Ecosystems (Management on the Cutting Edge), Lifelong learning. All Trends Business Sustainability Our hand-picked collection of the top sustainability trends of 2023 & 2022. This has been reflected in more litigation, with an increasing number of climate-related lawsuits against corporates. The UK also intends to bring forward sustainability-related disclosure requirements at the entity and product level. Ecosystems & Resources: A new global biodiversity framework will set the stage for rising global scrutiny and collaboration on nature. The Growth Summit 2023 is taking place on 2-3 May at the World Economic Forum's headquarters in Geneva, Switzerland. What Recent Trends Say About Sustainable Shopping In 2023 More From Forbes Apr 27, 2023,10:15am EDT Embracing Humanity In The Age Of AI: The Importance Of Company Culture Apr 27,. Many boards have responded to increasing ESG pressures by recruiting a sustainability specialist. Meanwhile, institutional investors under pressure to deploy capital are turning to still-developing voluntary carbon offset markets to meet climate commitments while continuing to finance assets and companies linked to fossil fuels. We will scale new technologies to gradually disrupt our carbon economy. 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. The past eight years are expected to become the eighth warmest on record, driven by rising greenhouse gas emissions and accumulated heat. This years forecast of sustainability trends looks like the perfect storm (in a good way) of purpose-minded, yet business opportunity-led progress. If not, select "Manage Preferences" to learn more about managing your cookie preferences. Private-public alignment is necessary to accelerate the transition towards circular models. Brief. This will require multi-stakeholder partnerships between the public and private sectors as well as among scientists, communities and consumers. Do you need charisma? The Summit brings together leaders from business, government, civil society, and academia to shape a new future of work that is inclusive, sustainable, and equitable. Circular solutions such as second-hand and previously owned products are also gaining traction amongst global consumers as, according to Euromonitors Voice of the Consumer: Sustainability Survey, fielded January to February 2022, 34% of global respondents mentioned their willingness to buy these products. Companies have been struggling to communicate sustainability to consumers. Successful examples include multi-stakeholder platforms like the Global Commitment, led by the Ellen McArthur Foundation and the United Nations Environment Program, through which 500 signatories such as Nestl, PepsiCo, Coca-Cola, Unilever, Mars, and LOral which together utilize 20% of all plastic packaging produced globally have committed to ensuring that all plastic packaging is reusable, recyclable, or compostable by 2025, among other circularity goals. Promoting a strong employee experience can contribute to sustained competitiveness over the long term. If you've had any better visions, let us know in the comments. Unilever Hearts of Palm Ceviche. The provisional agreementin the EU for new regulation for deforestation-free supply chain will mean many companies will have to better understand biodiversity risk. That said, we believe developing countries can only sustain so much debt to finance rising losses and lost revenues from physical climate risks. Your subscription grants you access to the quarterly magazine plus daily articles, videos, podcasts and learning exercises. 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. In 2023, we believe sustainability initiatives could be tested by persistent inflation and economic uncertainty. 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. All rights reserved. According to new NielsenIQ survey data, 46% of consumers are looking to brands to take the lead on creating sustainable change. More than 40,000 species are at risk of extinction in the coming decades, according to the UN progress report on the Sustainable Development Goals released in July 2022. 2 Expectations are growing for business to play a proactive role in driving efforts to secure a sustainable and inclusive future for the next generation. Photo courtesy of Unilever. 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.