Therefore, companies may face more scrutiny on appropriate board oversight and the maturity of their sustainability strategies and processes. 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. They have to act quickly as ESG frameworks and standards evolve, embedding into every business process sustainability metrics that are aligned with the company strategy, said Kaplan. All Trends Business Sustainability Our hand-picked collection of the top sustainability trends of 2023 & 2022. 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. 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 State of Sustainability for Emerging Beauty. 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. COP27 in November 2022 was quickly followed by the U.N.'s Convention on Biological Diversity, known as COP15. ESG and Climate Trends to Watch for 2023 - MSCI 1) Changing Electric Infrastructure Sustainability and ESG in 2023 | Bain & Company Many corporate leaders find sustainability also helps deepen their organizations sense of purpose to engage and retain a new generation of employees. With most models still at an experimental stage, a tougher challenge is spreading solutions globally. As we head out of COP27, many are disappointed to see climate deterioration going much faster than any governmental moves to address the crisis. 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. mandatory biodiversity assessments and disclosures by 2030. 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. 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. These trends are expected to impact a wide range of stakeholders, from companies, investors and workers to communities, regulators and policymakers. Susan Goldsworthy, Affiliate Professor of Leadership, Communications and Organizational Change. If you've had any better visions, let us know in the comments. 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. Discover more than 130,000 executives who are IMD alumni. Track existing and future opportunities to support critical decision-making across all functions within your organisation. Learn more about incorporating sustainability into your business operations to help create a future with zero emissions, zero waste, and zero inequality. 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. Leadership is about being positive and seeing opportunities, and we are living in a time where climate leadership is critically important. In the wake of the plastics treaty milestone, a new committee on chemicals was also set up. Trends that were driving innovation before the COVID-19 pandemic may have stalled for the past couple of years, but many now appear to be making a comeback. During COP15, the International Sustainability Standards Board (ISSB) announced that it will research the link between climate and nature. Meanwhile, the number and duration of droughts globally have risen by almost a third since 2000, according to the U.N. 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. These two events helped spotlight the links between two global environmental crises, climate change and biodiversity loss. MSc in Sustainable Management & Technology, Executives-in-Residence & Executive Fellows. Setting up a loss and damage fund at COP27 was only the first step. 6. At COP15, the 2022 UN conference on biodiversity, leaders decided on our collective goals for the post-2020 global biodiversity framework and businesses. 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. Discover all upcoming events for IMD alumni! This includes swapping packaging materials . 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 . Brands that help consumers to adopt sustainable lifestyles will be better-positioned, and therefore preferred, when conscious consumers see increasing disposable incomes again. Amanda Williams,Term Research Professor and Research Fellow. Mind the ESG reporting trap! 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. But actions speak louder than wordsand progress in areas such as food sustainability and reversing deforestation has been mixed over the past year. And the EU looks to advance its own human rights due diligence directive and regulation restricting goods made with forced labor throughout 2023. Sustainable solutions can, and should, be affordable, so consumers do not struggle when seeking more conscious habits. Peter Vogel, Professor of Family Business and Entrepreneurship, Ivan Miroshnychenko, Research Fellow and Term Research Professor. . 2. 1. 2023 Euromonitor is privately owned & trademarked. However, they also face criticism because of their complexity and a continuing lack of global alignment. Money matters are also driving sustainable business norms. Our premier, award-winning syndicated market research database provides detailed data and analysis on industries, economies, countries and consumers across 781 cities, 210 countries.. Source: Euromonitor's Voice of the Industry: Sustainability Survey 2022. 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. Net Zero & Energy: The recent focus on scope 3, carbon credits and carbon removal is set to accelerate. 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. This will continue in 2023 as prioritizing efficiency and waste reduction remains on the leading edge of industry trends and innovations. For example, the humanitarian sector is currently experiencing a $32.3bn shortfall between funding and what the UN says is needed. 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. Discover our campus locations in Switzerland and Singapore. Here are five of the hottest sustainability trends they identified, as well as how you can prepare for them. Five key ESG Credit Trends for 2023 identified by Sustainable Fitch: 1. 2022 was a hot year for the climate. While this tick-box approach demands 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. There is plenty of room for penetration in most markets, as the share of digital shelf remains low. Gartner researchers predicted that political bodies worldwide would support nation-state commitments to invest tens of trillions of dollars in climate mitigation from 2025 to 2035. Our consulting team answers your commercial questions with data and insights generated by our research experts, industry knowledge and 1,200 on-the-ground analysts in 100 developed, emerging and frontier markets. Many companies are working hard to meet net-zero sustainability targetsby 2050 or other target dates. 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. In January, Sherry Frey, VP of Wellness at NIQ hosted our annual Look Ahead Webinar covering the top wellness trends to watch in 2023. As a result, 91% of the global economy and 810 out of the 2,000 largest companies have pledged to net zero. 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. 4 Sustainable Travel Innovations Shaping the Future of the Tourism Industry. Here are the top six trends that are shaping a more sustainable future for our planet. At COP27 countries finally made progress on establishing a framework for a Global Goal on Adaptation (GGA). It is not a question of whether, it is a question of when. In 2023, we think broader market conditions will continue to influence GSSSB issuance. Another trend in sustainability that's gaining traction in restaurants is eco-friendly packaging. The challenges of transitioning to the circular economy are such that one single actor cannot tackle them alone. In the report that follows, we outline nine trends we see rising in prominence in the sustainability landscape during 2023. Top Digital Sustainability Trends In 2023 | Kitcast Blog Private-public alignment is necessary to accelerate the transition towards circular models. 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. Circular Economies: There will be momentum on tackling plastic and chemical pollution. Economic recovery after the pandemic has not been as fast as expected, while the Russian invasion of Ukraine has put extra pressure on consumer and business budgets due to supply chain and energy disruptions. Vanina Farber, elea Professor of Social Innovation, Patrick Reichert, Term Research Professor and Research Fellow. The human element of sustainability | Deloitte Insights Companies need data transparency with detailed precision along the entire value chain. These include Scope 3 emissions, those which do not come from their own operations but from their larger value chain. 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. So it is urgent to accelerate our progress towards this objective. Sustainability Trends 2023 | Predictions for Business, People, B2B & B2C Outlook 2023, Sustainability: five trends to watch These macroeconomic and market conditions could constrain issuer appetite for GSSSB offerings. 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. Company executives and boards of directors have become more attuned to the external reporting aspects of sustainability. They are developing sustainable products and services and supply chain practices to increase revenue, satisfy investors and regulators, and improve their reputation. If the current trend continues, the number of disasters could rise to 560 per year by 2030, up 40% from 2015. All content is available on the global site. At any given time, we have at least one million green startups exploring new energy solutions. Although Forrester analysts expected at. Considering all these pressures, its all too easy to stumble into the ESG reporting trap. In 2023, luxury players need to accelerate their decarbonization efforts by working on their Scope 3 emissions, and shift from a mindset of managing ESG risk to creating opportunities for strategic renewal and greater brand desirability through new purposeful and positive-impact business models. With all the regulatory changes ahead, 2023 will be a year dominated by managing ESG risks. In 2023, we believe sustainability initiatives could be tested by persistent inflation and economic uncertainty. 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. Global Sustainability Trends for 2023 - According to 42 experts Forrester expected five Fortune Global 200 firms to announce policies limiting travel for sustainability this year. 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. Studies project further losses in biodiversity by midcentury due to changes in both land use and climate, absent transformative changes to economies. Inconsistent ESG data availability and quality hinder corporate ESG efforts and impact. 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. For example, long-term energy transition goals will be weighed alongside nearer-term considerations such as energy affordability and security. 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. Five Key Trends Shaping the Sustainability Agenda in 2023 Trend watch 2023: Sustainability - NIQ - nielseniq.com 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. Building on the visibility of nature-based climate solutions at COP26, there was an enhanced profile for nature at COP27 too. 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. 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. Yet only 21% believe that their organizations are very ready to address such issues. Confrontation was always seen as an essential weapon for campaigners, but a new era of cooperation is proving equally effective. Here are four key trends from the ERM Sustainability Institute's 2023 Trends Report that are driving this transition: Corporate ESG disclosure will become more standardized across geographies and sectors. 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. 5 Hottest Sustainability Trends For 2023 + How You Can Prepare For Them 27 April 2023 by Frederic Barge, Karl Schmedders in Sustainability. In the short term, businesses of all industries and sizes will look at energy-saving measures to reduce both costs and carbon emissions.
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