Julia Binder, Professor of Sustainable Innovation and Business Transformation. And the search for high-quality carbon credits, including those based on marine natural capital (so-called blue carbon such as seagrass, mangroves and tidal marshes), will accelerate. Therefore, it is important for companies to align with international standards and get advice from experts, such as the United Nations or the Ellen MacArthur Foundation, to pave the way to efficient and impactful implementation. Error: Something went wrong, try again in a few minutes. Expectations are growing for business to play a proactive role in driving efforts to secure a sustainable and inclusive future for the next generation. 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 expectations from AI in terms of efficiency and costs savings is very high it is still considered to be the most disruptive technology of today. ESG and Climate Trends to Watch for 2023 - MSCI 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. 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. COP27 in November 2022 was quickly followed by the U.N.'s Convention on Biological Diversity, known as COP15. mandatory biodiversity assessments and disclosures by 2030. Proactively using renewable energy, reducing waste and reusing materials will not only help companies to be ahead of legislation, but also demonstrate their interest in being part of the solution. 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. But actions speak louder than wordsand progress in areas such as food sustainability and reversing deforestation has been mixed over the past year. Here are five of the hottest sustainability trends they identified, as well as how you can prepare for them. 27 April 2023 by Frederic Barge, Karl Schmedders in Sustainability. Social Sustainability: The cost-of-living crisis intensifies, but offers opportunities for more-inclusive climate action. She has worked in sustainability management, consulting, and education for more than 15 years. 2023-2030 Sustainability Reporting Software Market is - MarketWatch We will scale new technologies to gradually disrupt our carbon economy. In that journey, many are also realizing that it is impossible to achieve net zero without looking outside of their traditional business. That is the hardest part, as usually 90-99% of a companys greenhouse gas emissions are Scope 3. 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. 7 sustainability trends to watch in 2023 1 In 2023, consumers will be holding brands responsible for progressing the world's state of sustainability. Also, several AI giants such as Google and Microsoft have already pledged to become carbon negative soon. Grow your network and explore the latest thinking on todays critical business challenges and opportunities. 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. 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. Knut Haanaes, Professor of Strategy and Lundin Chair Professor of Sustainability. The need for stronger collaboration shines through the five key sustainability and climate trends I expect to see in 2023. With the right approach, everyone can be a winner. What's Next for Sustainable Business? 2022 Sustainability Trends - ERM Plastic-Free Living It's no secret that plastic pollution is a major environmental issue. These include Scope 3 emissions, those which do not come from their own operations but from their larger value chain. Workers increasingly demonstrate willingness to adjust the time and effort they dedicate to their job or leave their positions for new opportunities if workplace culture does not align with their values and expectations. 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 incentivize the C-level and senior managers? 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. Our global experts keep pace with sustainability trends providing timely insights on shifting consumer preferences and the latest innovations, strategies and investments shaping governments and business agendas. The top 5 sustainability and climate trends to watch in 2023 Curious about how we partner with you to help you solve your complex modern-day business problem? Renewables and Nuclear Hold Promise for Net Zero Energy. More Sustainable Materials. The picture looks especially complicated in Europe, where new investment in liquefied natural gas and a slower phaseout of coal could challenge decarbonization plans. Since 2019, the number of people affected by food shortages has more than doubled to 345 million, roughly 4% of the world population, from 135 million, as reported by the World Food Programme. 10 Trends That Will Define Sustainability in 2023 - LinkedIn Inconsistent ESG data availability and quality hinder corporate ESG efforts and impact. 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. 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. 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. 2023 Foodservice Food and Flavor Trends - IFT.org 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. The market for carbon credits will continue to evolve in 2023. 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. Develop fully customized programs that reflect the unique opportunities and challenges of your organization. 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. 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. 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. Although the number of climate-related deaths has decreased threefold in the last 50 years thanks to early warning systems and better disaster management and preparedness, climate-related disasters are now nearly five times as frequent, according to the World Meteorological Organization. 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. From net zero to climate-positive supply chains, Many companies are working hard to meet net-zero sustainability targetsby 2050 or other target dates. In this context, practical solutions that can accelerate progress on the SDGs will be urgently needed. By understanding and implementing these 2023 sustainability trends, restaurants can stay ahead of the curve . Research with more than 3,000 executives since April 2020 shows that between half and two-thirds of leaders say they are operating from a place of dis-ease rather than a position of well-being. Build your core leadership skills, accelerate your career and harness your full potential as a leader. Florian Hoos, Professor of Sustainability and ESG accounting. As sustainability has morphed from carbon emissions tracking into company-wide commitments to achieve global imperatives, organizations of all kinds find themselves in the business of creating a healthier world. In the short term, businesses of all industries and sizes will look at energy-saving measures to reduce both costs and carbon emissions. Euromonitor International has identified five key trends affecting the global sustainability agenda in 2023. Private-public alignment is necessary to accelerate the transition towards circular models. 5 Major Sustainability Trends For 2023 - GoSquared Blog 6. In turn, this has taken a heavy toll on the sea level rising, European glacier melting, and extreme weather events from . But, in order for circular models to succeed, there is a need for collaboration. Growth Summit 2023: Here's what to expect | World Economic Forum Authors: Andrew Angle, Aiste Brackley, Justin Nelson, Laura Street, Mark Lee. 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. Finally, the need to draw down greenhouse gases already in the atmosphere will continue to gain momentum in 2023, with technological carbon-removal solutionsin addition to nature-based onesseeing unprecedented investment following the Biden administrations announcement to invest US$3.5bn in carbon-removal technology. 2023 Trends: New waves of ESG integration - erm.com Being tech-savvy, the digital natives are willing to take a more data-driven approach in order to lead the way towards a net-zero future. Collaboration between government, financiers and innovators will be key to scale up these solutions. Here's our breakdown of some of the biggest sustainability trends impacting retail in 2023: Greater transparency, increased regulation Focus on improving delivery to reduce the carbon footprint Rise of the circular economy Eco-friendly, fair workplaces Ethical supply chain Growing role of data and AI in sustainability efforts 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. 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. 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. Despite economic uncertainty, consumers keep demonstrating interest in sustainable products to remain true to their values, opting for products that use inputs such as water and energy more efficiently, which consequently helps them reduce costs. Our experts offer actionable insights through first-person narratives, behind-the-scenes interviews and The Help Desk. Source: Euromonitor's Voice of the Industry: Sustainability Survey 2022. Also, businesses should work with key stakeholders such as governments, suppliers, and competitors to build scale economies that allow the acceleration of the transition. 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. First, the world is searching for new solutions. 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. COP27 has confirmed the need for stronger co-operation on key issues such as climate finance and corporate net-zero commitments. The goal is to agree on a post-2020 global biodiversity framework that builds on the Strategic Plan for Biodiversity 2011-2020. 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. Meanwhile, new human rights regulations will introduce additional requirements for company supply chain management. In 2023, we think broader market conditions will continue to influence GSSSB issuance. The 6 Biggest Sustainability Trends in 2023 - Exploding Topics Affordable sustainability There is unanimous agreement that 2023 will be a challenging year across global markets. 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. Recent research reinforces the link between increasing drought frequency and severity and climate change, which has made Northern Hemisphere droughts in summer 2022 at least 20 times more likely. While policy and regulation play catch up, how will the financial sector, firms, and consumers step up to the challenge? AI: a friend and a foe for sustainability? It is not a question of whether, it is a question of when. Outlook 2023, Sustainability: five trends to watch 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 most models still at an experimental stage, a tougher challenge is spreading solutions globally. Were seeing customers replace time-consuming, inaccurate manual approaches with a holistic steering and reporting solution like SAP Sustainability Control Tower. 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. 2023 Euromonitor is privately owned & trademarked. In addition to more substantial legal, operational, reputational and financial consequences of violations, companies may need to consider costs associated with adapting their sourcing models and managing higher input and production prices. Insights on Sustainability Article Toward a more orderly US energy transition: Six key action areas January 12, 2023 - The US drive to decarbonize is at an inflection point. 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. The proposals from the ISSB, EFRAG and SEC all use the TCFD framework as a reference for climate-related issues, but differences remain in their specific requirements and how they treat wider sustainability issues. Sustainability is good for business, and not just because it mitigates regulatory compliance risk. Download this insight brief to learn about the top eight ESG and sustainability trends you should expect to see in 2022 and beyond. In the Deloitte 2023 Global Human Capital Trends survey, 84% of respondents acknowledge that understanding the impact of sustainability on their organization and defining ownership for driving progress and outcomes is important to their organizations' success. 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. Our premier, award-winning syndicated market research database provides detailed data and analysis on industries, economies, countries and consumers across 781 cities, 210 countries.. Sustainability Conferences to attend in 2023. Boards leading on ESG drive the ESG culture of the board through its composition. Mind the ESG reporting trap! In the longer term, this will likely lead to increased adoption of new types of energy and fuels. Empowering senior teams to identify opportunities for growth and transformation. Critical actions could accelerate the transition while enhancing energy affordability and supporting inclusive economic growth. Less noticed is the messier and increasingly relevant fact that environmental, social, and governance (ESG) topics exist both inside and outside of investors' portfolio decisions. Sharing emotions for healthy, sustainable high performance, Luxury developing sustainable supply chains, Board composition and responsibilities adapt to ESG purpose, Innovation, investment, and business transformation fuel climate hopes. Instead, boards need to understand their own true personality around ESG and then evolve the board composition in that direction whether it is climate change, next generation, social justice, or diversity concerns. 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. 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. At COP27 countries finally made progress on establishing a framework for a Global Goal on Adaptation (GGA). Additionally, these practices help them reduce their environmental footprint while saving costs associated with waste and resource and energy consumption. 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. For example, long-term energy transition goals will be weighed alongside nearer-term considerations such as energy affordability and security. All rights reserved. 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. 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. Top Sustainability Trends of 2023 - Glimpse 1) Changing Electric Infrastructure Today, we have at least 13,000 large and medium-sized companies in Europe transitioning towards more sustainable operations by disclosing their climate footprint. Outlook 2023, Sustainability: five trends to watch. 19 hours ago by Winter Nie, Ivy Buche, Mahwesh Khan in Competitiveness, by Natalia Olynec Published 2 January 2023 in Sustainability 12 min read. Against this backdrop, we anticipate that 2023 will test companies and investors on the strength and depth of their sustainability commitments and the priorities they support in light of a growing risk of ESG-related litigation. If you are happy with this select "Accept All". Sustainability-linked bond issuance fell sharply over the second half of 2022 as investors raised concerns about issuer ambitions and incentives to achieve sustainability targets.
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