27 April 2023 by Frederic Barge, Karl Schmedders in Sustainability. Authors: Andrew Angle, Aiste Brackley, Justin Nelson, Laura Street, Mark Lee. The need for stronger collaboration shines through the five key sustainability and climate trends I expect to see in 2023. 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. The good news is that AI can also help with better conservation of natural resources through better prediction, managing agriculture yield or managing the demand and supply of energy in energy grids. 5 Sustainability Trends in 2023 and Beyond - DHL Express NZ 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. For this to be achieved, companies need to measure direct (scope 1) and indirect (scope 2 and 3) emissions. Here are our top 10 sustainability trends we're expecting to see gain momentum and define sustainability in 2023: 1. Yet only 21% believe that their organizations are very ready to address such issues. In that journey, many are also realizing that it is impossible to achieve net zero without looking outside of their traditional business. 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. Sustainability Trends 2023: Goodbye Greenwashing, Hello - Forbes With most models still at an experimental stage, a tougher challenge is spreading solutions globally. This could help maintain investment momentum in key technologies and ultimately deliver a faster energy transition with increased energy security for countries and companies alike. The latest developments in sustainability, trends in bathroom design and the industry's innovations are the focus of the Pop Up My Bathroom trend showcase at ISH 2023.Established by the VDS and Messe Frankfurt, the trend platform for the bathroom sector hosted a large-scale exhibition and accompanying talk forum, both of which were aimed not just at the trades but at . However, they also face criticism because of their complexity and a continuing lack of global alignment. Brief. Apr 26, 2023 (3BL Media via . 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 research is based on feedback from analysts and researchers across S&P Global. 5 Hottest Sustainability Trends For 2023 + How You Can Prepare For Them 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. Promoting a strong employee experience can contribute to sustained competitiveness over the long term. Additionally, these practices help them reduce their environmental footprint while saving costs associated with waste and resource and energy consumption. One main driver for this is the next generation of family owners. 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. In January, Sherry Frey, VP of Wellness at NIQ hosted our annual Look Ahead Webinar covering the top wellness trends to watch in 2023. Copyright The Economist Newspaper Limited 2023. These are accelerating systems transformation by boosting multi-stakeholder innovation, thus reducing costs for players, surmounting obstacles, and advancing solutions adoption. Sustainability Trends in 2023 for Businesses and Investors Yet collaborations are difficult to orchestrate as they demand systemic changes in clear contrast with the linear and profit-driven mindset prevailing in business. Empowering senior teams to identify opportunities for growth and transformation. In June 2021, the International Organization of . 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. Protecting and restoring biodiversity under the Convention on Biological Diversity (CBD) has been on the agenda since 2020. The need for stronger collaboration shines through the five key sustainability and climate trends I expect to see in 2023. Corporates investing in their own energy generation may find projects cost more in the short term. From 2023 we may see more second-hand, vintage and repurposing brands becoming central to the way we shop. 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. Despite these headwinds, we continue to view that the sustainable debt market will help advance sustainability goals. Gartner researchers said the ability to efficiently navigate the global regulatory environment and scale compliance systems will offer companies a significant competitive advantage. Nevertheless, Here are a few of my predictions for trends that will shape sustainability in 2023. What is your plan to transition into the low-carbon era under different scenarios? 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. Supporting organizations with talent assessment, development and leadership progression. 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. Curious about how we partner with you to help you solve your complex modern-day business problem? With all the regulatory changes ahead, 2023 will be a year dominated by managing ESG risks. 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. Foodservice innovation drivers in 2023 include health and wellness, nostalgia, sustainability, and a desire for adventure. Sustainability and ESG in 2023 | Bain & Company These trends highlight the delicate balancing act we see stakeholders facing and managing, weighing various and sometimes opposing forces. This is why specific claims such as natural, organic, and vegan enjoyed outstanding momentum during 2021, according to Euromonitors Sustainability Opportunity Tracker. New regulations drive sustainability strategy. Studies project further losses in biodiversity by midcentury due to changes in both land use and climate, absent transformative changes to economies. The USA's Securities and Exchange Commission (SEC) has . 1. 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. Corporate sustainability into action: Business Trends 2023 - IESE Standout 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. We will scale new technologies to gradually disrupt our carbon economy. 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. In the longer term, this will likely lead to increased adoption of new types of energy and fuels. High rates of inflation in many markets are causing the prices of many products to rise steeply. 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. She has worked in sustainability management, consulting, and education for more than 15 years. Companies need data transparency with detailed precision along the entire value chain. Discover all upcoming events for IMD alumni! The Intergovernmental Negotiating Committee (INC) will hold workshops over the course of 2023, with the aim of adopting the treaty in 2024. 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. This year's forecast of sustainability trends looks like the perfect storm (in a good way) of purpose-minded, yet business opportunity-led progress. Surely thats progress that will help us breathe a little easier and live longer. Moving to a cloud service provider that has made such commitments may help organizations reduce their own carbon footprint as well! Via helps you navigate a fast-changing digital marketplace. 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. Three Energy and Sustainability Trends to Watch in 2023 And the EU looks to advance its own human rights due diligence directive and regulation restricting goods made with forced labor throughout 2023. That is the hardest part, as usually 90-99% of a companys greenhouse gas emissions are Scope 3. 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. Storytelling and expertise from marketers, SAP BrandVoice: Green Customer Experiences Drive Ongoing Growth For Midsize Businesses. The social dimension of the challenges of climate change, climate action and sustainability has often been an after-thought, but in 2023 this dimension will rise further up the sustainability agenda. While policy and regulation play catch up, how will the financial sector, firms, and consumers step up to the challenge? Top Digital Sustainability Trends In 2023 April 25, 2023 Digital signage and sustainability: a thorny relationship Eco-conscious digital signage Power consumption awareness Improved energy efficiency For many years the word "sustainability" was used more as a PR stunt by companies than a wide-ranging concept of their operation. . With the world continuing to emerge from Covid-19 lockdowns, cracks in economies, societies and environmental ambitions are becoming clearer. Trend watch 2023: Sustainability - NIQ - nielseniq.com 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. With most models still at an experimental stage, a tougher challenge is spreading solutions globally. 13 sustainability trends driving business in 2023 - I by IMD Progressive employment practices implemented in the wake of COVID-19 will be tested by cost-cutting related to economic uncertainty. 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. An infographic based on the latest Climate Watch data highlights that energy usage contributes to 73.2% of global greenhouse gas emissions. Source: Euromonitor's Voice of the Industry: Sustainability Survey 2022. Girod, Professor of Strategy and Organizational Innovation. Key insights such as 'The Future of Jobs' report will map . Both crises call for increased focus on energy efficiency and acceleration of investment in renewables, suggesting alignment. 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. Mind the ESG reporting trap! Discover our campus locations in Switzerland and Singapore. Look out for 2023: Sustainability trends Unsurprisingly, sustainability was one of the key . Can development organizations, governments, firms and private financial institutions work together with the humanitarian sector to fill the gap? Many companies are working hard to meet net-zero sustainability targetsby 2050 or other target dates. That said, we believe developing countries can only sustain so much debt to finance rising losses and lost revenues from physical climate risks. Enabling organizations to meet their learning objectives, in a more impactful, convenient and flexible way. ArtificiaI Intelligence, and specifically certain deep learning models such as those designed to process human language, requires huge amounts of energy. Track existing and future opportunities to support critical decision-making across all functions within your organisation. Money matters are also driving sustainable business norms. Stakeholder pressures on companies keep rising. In turn, this has taken a heavy toll on the sea level rising, European glacier melting, and extreme weather events from . At COP27 countries finally made progress on establishing a framework for a Global Goal on Adaptation (GGA). Susan Goldsworthy, Affiliate Professor of Leadership, Communications and Organizational Change. 5 Major Sustainability Trends For 2023 - GoSquared Blog ET. In a few years, almost all companies around the world will have adopted mandatory sustainability reporting standards either because they were obliged to by law or because they can no longer resist stakeholder pressures. The past eight years are expected to become the eighth warmest on record, driven by rising greenhouse gas emissions and accumulated heat. These include Scope 3 emissions, those which do not come from their own operations but from their larger value chain. Published May 1, 2023 + Follow As the world continues to grapple with environmental and social challenges, sustainable finance is becoming increasingly important. 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. Five key ESG Credit Trends for 2023 identified by Sustainable Fitch: 1. 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. First, the world is searching for new solutions. 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. Some nations loosened restrictions on operating coal-fired power plants, while others extended the lives of coal and nuclear power plants. Join Team IMD. 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. Victoria Kemanian, Senior Advisor, Business Transformation Initiative. What Recent Trends Say About Sustainable Shopping In 2023 - Forbes Develop fully customized programs that reflect the unique opportunities and challenges of your organization. In the longer term, this will likely lead to increased adoption of new types of energy and fuels. There is plenty of room for penetration in most markets, as the share of digital shelf remains low. They place them all on the wall, acknowledging and accepting them. 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. The human element of sustainability | Deloitte Insights 2 Or learn more about our privacy policy and how we use and store your data. 2023 Post-filing season update; Electric vehicle federal tax credit rules tightened as of April 18, 2023; In 2023, we believe companies and investors will have to prepare for reporting under a number of new and complex sustainability disclosure standards and adapt as they continue to evolve. 2022 Sustainability Trends Report. Policy incentives will also continue to emerge to stimulate innovation, help tackle climate change and fund the shift to clean energy. Grow your network and explore the latest thinking on todays critical business challenges and opportunities. Sustainability Trends 2023 | Predictions for Business, People, B2B & B2C 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). 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,. For example, the humanitarian sector is currently experiencing a $32.3bn shortfall between funding and what the UN says is needed. 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. 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. 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. Thus, the need for sustainable trends will also possibly increase in 2023. Sustainability Trends 2023 - What to expect? - LinkedIn This push-and-pull dynamic could be a hallmark of sustainability discussions and decisions throughout 2023. Organizational readiness for sustainable transformation, The next generation in family business will power data-driven sustainability, War and energy shortages accelerate adoption of energy efficiency and renewable energy. 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. Regulatory trends point to a hardening of what were largely voluntary frameworks for how companies manage human rights in their upstream operations. Taking a stack of post-it notes, team members write down all the things that are concerning them from their personal and professional perspectives. All this will require considerably more investments and capability building. 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. During COP15, the International Sustainability Standards Board (ISSB) announced that it will research the link between climate and nature. Outlook 2023, Sustainability: five trends to watch. 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. 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. 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. These trends are expected to impact a wide range of stakeholders, from companies, investors and workers to communities, regulators and policymakers. All stakeholders will bear the impacts from physical risks related to climate change. Carbon-negative means generating environmental benefits by removing more CO2 from the atmosphere than what is produced. Luxury actors, traditionally fearless competitors, have come to realize that they need to collaborate to shift to positive impact. Source: Euromonitors Voice of the Industry: Sustainability Survey 2022. Therefore, for companies to remain competitive and relevant in such fast-evolving sustainability environments, proactive collaboration with key stakeholders is crucial. A New Era for Sustainability Accountability Last year we saw an influx. 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. Nevertheless, we think companies will be pressed in 2023 to invest more resources into managing the resilience and sustainability of their supply chains in the face of a more rigorous regulatory landscape governing corporate responsibility around the impact on human rights. Policymakers and senior executives need to navigate the increasing complexity of simultaneous climate and cost-of-living crises. 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. 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. 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.. 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. 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. In addition, ESG investors and rating agencies are holding firms accountable for their sustainability records. Powerful business networks. However, the need to bring citizens and workers on board with the climate-action agenda will remain a challenge. Circular Economies: There will be momentum on tackling plastic and chemical pollution.
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