Some nations loosened restrictions on operating coal-fired power plants, while others extended the lives of coal and nuclear power plants. AI: a friend and a foe for sustainability? Meanwhile there are plenty of near-term business results from the sustainability wave. Collaboration between government, financiers and innovators will be key to scale up these solutions. Here are our top 10 sustainability trends we're expecting to see gain momentum and define sustainability in 2023: 1. At the wake of the conflict that has stirred markets, Eco-Business rounds up six trends that could influence global sustainability in 2023. While policy and regulation play catch up, how will the financial sector, firms, and consumers step up to the challenge? 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 We Mean Business Coalition and the Voluntary Carbon Markets Integrity Initiative have continued moving towards better regulation and standards for carbon credits. 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. 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. 8 Sustainability Trends to Expect in 2022 | Wolters Kluwer They are developing sustainable products and services and supply chain practices to increase revenue, satisfy investors and regulators, and improve their reputation. Stphane J.G. In that publication, we suggested 2021 . In order for companies to return to the environment more than they take from it, circular models are needed, as they provide resilient solutions with a triple impact on businesses, people, and the environment. 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. And the EU looks to advance its own human rights due diligence directive and regulation restricting goods made with forced labor throughout 2023. Unlock your purpose and create positive, lasting change in your career, organization and society. Prodded by consumer demands and impelled by increasingly stringent regulations, the business sector has taken notice and actions to create a more sustainable future. 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. Five Key Trends Shaping the Sustainability Agenda in 2023, Our premier global market research database with detailed data and analysis on industries, companies, economies and consumers. 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. Download this insight brief to learn about the top eight ESG and sustainability trends you should expect to see in 2022 and beyond. 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. Carbon offsets have been criticized for. 19 hours ago by Winter Nie, Ivy Buche, Mahwesh Khan in Competitiveness, by Natalia Olynec Published 2 January 2023 in Sustainability 12 min read. But, in order for circular models to succeed, there is a need for collaboration. 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. As it matures and evolves across asset classes and geographies, Andy Howard, Global Head of Sustainable Investment, considers the future of ESG and impact. A fully online experience that takes you on an in-depth exploration of topics that matter to you. Corporate sustainability into action: Business Trends 2023 - IESE Standout The challenge to reduce scope 3 emissions (ie, indirect emissions by suppliers or consumers in an organisations value chain) will accelerate in 2023 as companies focus on their supply-chain partners and on how their products and services are used by customers. Finally, our companies are transforming. Moving to a cloud service provider that has made such commitments may help organizations reduce their own carbon footprint as well! 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. What makes a great leader? The 6 Biggest Sustainability Trends in 2023 - Exploding Topics In the short term, businesses of all industries and sizes will look at energy-saving measures to reduce both costs and carbon emissions. 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. Our experts offer actionable insights through first-person narratives, behind-the-scenes interviews and The Help Desk. What's Next for Sustainable Business? Taking a stack of post-it notes, team members write down all the things that are concerning them from their personal and professional perspectives. ArtificiaI Intelligence, and specifically certain deep learning models such as those designed to process human language, requires huge amounts of energy. estimated that the transition to net zero alone will provide business opportunities of $12trn per year. Resilience & Adaptation: There will be further progress on loss and damage and the global adaptation goal. We expect that 2023 will see significant attention paid to adaptation and resilience financing. Gartner Identifies the Top 10 Strategic Technology Trends for 2023 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. Russias invasion of Ukraine disrupted energy supplies across Europe, creating energy insecurity, soaring costs, and a strong incentive for investment in renewable energy sources. The durability of sustainable employment practices, implemented in recent years in response to significant shifts in workforce expectations, will be challenged by recessionary risks in many markets. Five key ESG Credit Trends for 2023 identified by Sustainable Fitch: 1. An unprecedented level of co-operation and solidarity is now required to unleash the funds potential. These two events helped spotlight the links between two global environmental crises, climate change and biodiversity loss. Build your core leadership skills, accelerate your career and harness your full potential as a leader. 2022 was a hot year for the climate. What is your plan to transition into the low-carbon era under different scenarios? All too often, companies and business leaders are not getting any insights from ESG analyses, as they approach ESG reporting solely as a. an incredible amount of data, it does not provide insight on how to seize the enormous opportunities that the sustainable transformation will open up across all sectors. Setting up a loss and damage fund at COP27 was only the first step. 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. 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. Plastic-Free Living It's no secret that plastic pollution is a major environmental issue. They didnt see companies returning to business travel as usual, writing that some are using the [post-pandemic] restart to reevaluate existing travel practices by tracking travel emissions data.. As a result, 91% of the global economy and 810 out of the 2,000 largest companies have pledged to net zero. There is plenty of room for penetration in most markets, as the share of digital shelf remains low. 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. Through this process, leaders co-create the conditions where people can flourish amidst adversity. However, organizational transformation and readiness is needed to push the boundaries of the problems that private capital can address and solve. Published: April 26, 2023 at 10:09 a.m. Boards leading on ESG drive the ESG culture of the board through its composition. 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. 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. 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. We will scale new technologies to gradually disrupt our carbon economy. These macroeconomic and market conditions could constrain issuer appetite for GSSSB offerings. 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,. One simple exercise can be powerful in creating a more inclusive, productive environment. 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.