The USA's Securities and Exchange Commission (SEC) has . Thank you to all our colleagues across S&P Global who contributed to this research: Laurence Allen, Rameez Ali, Marion Amiot, Giacomo Bareato, Corinne Bendersky, Erin Boeke Burke, Beth Burks, Carlos Cardenas, Bernard de Longevialle, Florence Devevey, Alexandra Dimitrijevic, Jaspreet Duhra, Silvia Favasuli, Michael Ferguson, Rita Ferreira, Taos Fudji, Pierre Georges, Lotte Griek, Lapo Guadagnuolo, Bertrand Jabouley, Roman Kramarchuk, Raoul LeBlanc, Gregg Lemos-Stein, Rick Lord, Tom Lowenstein, Matt MacFarland, Rose Marie Burke, Mary Minton, Matthew Mitchell, Anna Mosby, Karl Nietvelt, Laurent Ruseckas, Francesca Sacchi, Jamie Salo, Roberto Sifon-arevalo, Michael Stoppard, Vijay Subramanian, Priya Suvarna, Cornelis theunis Van der lugt, Kieran Trevor, Barbara Velado, Emmanuel Volland, Ken Wattret, Nora Wittstruck, Xizhou Zhou. They also involve measures to enhance the working environment, supply chain emissions, employee well-being, and ethical reporting. 8 Sustainability Trends to Expect in 2022 | Wolters Kluwer Experience IMD for yourself, join one of our upcoming events. These two events helped spotlight the links between two global environmental crises, climate change and biodiversity loss. Leadership is about being positive and seeing opportunities, and we are living in a time where climate leadership is critically important. Fundamentally, if we take a long-term perspective, we will deal with climate change. Powerful business networks. Protecting and restoring biodiversity under the Convention on Biological Diversity (CBD) has been on the agenda since 2020. Sustainability trends to look out for in 2023 Michael Wilkins on December 30, 2022 There's an unpredictable year ahead and my futuristic thinking can only pierce so far into the haze. Your subscription grants you access to the quarterly magazine plus daily articles, videos, podcasts and learning exercises. 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. Develop fully customized programs that reflect the unique opportunities and challenges of your organization. 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. Take a scroll through our 2022 Annual and Sustainability reports. 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. 1. 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. 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 For example, long-term energy transition goals will be weighed alongside nearer-term considerations such as energy affordability and security. 5 Sustainability Trends in 2023 and Beyond 07 April 2023Save Article Save Article In recent years, sustainability has become an increasingly important issue for businesses and individuals alike. 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. Top Sustainability Trends of 2023 - Glimpse /esg/insights/featured/special-editorial/key-sustainability-trends-that-will-drive-decision-making-in-2023 Considering all these pressures, its all too easy to stumble into the ESG reporting trap. Discover our campus locations in Switzerland and Singapore. From battery-powered cruise ships to aviation biofuel derived from microalgae. Stphane J.G. 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. Gartner Identifies the Top 10 Strategic Technology Trends for 2023 Consumers still want to positively impact the environment, and expect companies to play their part in democratising sustainability; therefore, understanding the sustainability landscape will help companies to identify risks and seize new opportunities. Company executives and boards of directors have become more attuned to the external reporting aspects of sustainability. From net zero to climate-positive supply chains, Many companies are working hard to meet net-zero sustainability targetsby 2050 or other target dates. The human element of sustainability | Deloitte Insights Corporate An unprecedented level of co-operation and solidarity is now required to unleash the funds potential. 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. Many restaurants now offer compostable containers and utensils that are much more eco-friendly than traditional plastic or styrofoam. Discover more than 130,000 executives who are IMD alumni. 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. At COP15, the 2022 UN conference on biodiversity, leaders decided on our collective goals for the post-2020 global biodiversity framework and businesses. So it is urgent to accelerate our progress towards this objective. 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. Finally, our companies are transforming. 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. 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. Euromonitor International has identified five key trends affecting the global sustainability agenda in 2023. In the short term, businesses of all industries and sizes will look at energy-saving measures to reduce both costs and carbon emissions. Source: Euromonitors Voice of the Industry: Sustainability Survey 2022. I have ordered these by the five pillars of Economist Impacts Sustainability Project: Net zero is the ambition to reduce greenhouse-gas emissions as much as possible towards zero, and to counter any remaining emissions with carbon-negative solutions, whether nature-based (for example, planting trees or restoring mangroves) or technological (such as direct air capture). 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. The MarketWatch News Department was not involved in the creation of this content. There is an urgent need for private capital to enter frontier markets to help solve systemic grand challenges. From net zero to climate-positive supply chains The We Mean Business Coalition and the Voluntary Carbon Markets Integrity Initiative have continued moving towards better regulation and standards for carbon credits. Corporates investing in their own energy generation may find projects cost more in the short term. The global green, social, sustainability and sustainability-linked bond (GSSSB) market in 2022 did not reach the highs set in 2021, as rising interest rates and the risk of recession in many parts of the world sidelined debt issuers. These trends are expected to impact a wide range of stakeholders, from companies, investors and workers to communities, regulators and policymakers. Knut Haanaes, Professor of Strategy and Lundin Chair Professor of Sustainability. The challenges of transitioning to the circular economy are such that one single actor cannot tackle them alone. Along that path, they are now asking themselves if they could push even more and transform their supply chains to become CO2 negative, going beyond net zero. 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. 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. Tackling pollution from source to sea will be increasingly important. 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. Regulation. Unilever Hearts of Palm Ceviche. In addition, ESG investors and rating agencies are holding firms accountable for their sustainability records. Were seeing customers replace time-consuming, inaccurate manual approaches with a holistic steering and reporting solution like SAP Sustainability Control Tower. Climate change is driving water scarcity and more severe and frequent droughts, hampering agricultural production, food supplies and economies. The sustainability trends in 2023 are predicted to plunge beyond eco-friendliness. Brands that help consumers to adopt sustainable lifestyles will be better-positioned, and therefore preferred, when conscious consumers see increasing disposable incomes again. 2. By Jonny Bierman. Litigation risk has also given rise to a new trend named by some as "greenhushing", whereby companies may refrain from disclosing details of their sustainability goals and practices for fear of being penalized for the information released. Green Construction Trends That Are Emerging in 2023 Trend watch 2023: Sustainability - NIQ - nielseniq.com Family businesses will adopt new digital capabilities to manage sustainability data that guide sustainable business practices. Sustainability Insights | McKinsey & Company Do you need charisma? An infographic based on the latest Climate Watch data highlights that energy usage contributes to 73.2% of global greenhouse gas emissions. Apr 26, 2023 (3BL Media via . Although Forrester analysts expected at. 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. We anticipate that some investors will increasingly check to see if companies are backing their words with actions, particularly on climate. What's Next for Sustainable Business? 2022 Sustainability Trends - ERM Though geopolitical conflicts, inflation and the effects of climate change continue to pose risks to supply chain operations, there are indications that the supply chain disruptions of recent years may be easing. What kind of regulation forecast mechanism is needed to be prepared for changes in standard setting at different levels (ISSB, EU regulation, etc.)? Only limited material is available in the selected language. One simple exercise can be powerful in creating a more inclusive, productive environment. Visit our Sustainability page and Sustainability store for further insights. For example, the humanitarian sector is currently experiencing a $32.3bn shortfall between funding and what the UN says is needed. What Recent Trends Say About Sustainable Shopping In 2023 - Forbes 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. Environmental, social, and corporate governance (ESG) standards and regulations are becoming a dominant force in how organizations operate, touching every part of the business. How do you incentivize the C-level and senior managers? However, organizational transformation and readiness is needed to push the boundaries of the problems that private capital can address and solve. 2023 Restaurant Sustainability Trends - Foodservice, Zero Waste We help businesses, policymakers, financiers, investors, NGOs and others achieve sustainability goals, faster. All stakeholders will bear the impacts from physical risks related to climate change. More countries may make reporting under recommendations of the Task Force on Climate-Related Financial Disclosures (TCFD) mandatory, such as New Zealand, Singapore and Switzerland, where the requirement comes into force in 2023. The Growth Summit 2023 is taking place on 2-3 May at the World Economic Forum's headquarters in Geneva, Switzerland. The MarketWatch News Department was not involved in the creation of this content. It appears increasingly challenging to meet the Paris Agreement goal to limit warming to 1.5 degrees to 2 degrees Celsius relative to preindustrial levels, as emissions should reach all-time highs in 2023. 13 sustainability trends driving business in 2023 - I by IMD As it matures and evolves across asset classes and geographies, Andy Howard, Global Head of Sustainable Investment, considers the future of ESG and impact. 1. 5 Hottest Sustainability Trends For 2023 + How You Can Prepare For Them Both crises call for increased focus on energy efficiency and acceleration of investment in renewables, suggesting alignment. 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. estimated that the transition to net zero alone will provide business opportunities of $12trn per year. However, they also face criticism because of their complexity and a continuing lack of global alignment. 10 Trends That Will Define Sustainability in 2023 - LinkedIn 2023 Euromonitor is privately owned & trademarked. Look out for 2023: Sustainability trends This is understandable in the face of competing metrics and reporting requirements and the resulting confusion but as with digital, geopolitics, or other specific areas of general impact, such roles have been limited to board work. In the report that follows, we outline nine trends we see rising in prominence in the sustainability landscape during 2023. If the current trend continues, the number of disasters could rise to 560 per year by 2030, up 40% from 2015. Florian Hoos, Professor of Sustainability and ESG accounting. These trends highlight the delicate balancing act we see stakeholders facing and managing, weighing various and sometimes opposing forces. Some nations loosened restrictions on operating coal-fired power plants, while others extended the lives of coal and nuclear power plants. That said, we believe developing countries can only sustain so much debt to finance rising losses and lost revenues from physical climate risks. Authors: Andrew Angle, Aiste Brackley, Justin Nelson, Laura Street, Mark Lee. Brief. 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. During COP15, the International Sustainability Standards Board (ISSB) announced that it will research the link between climate and nature. 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. If not, select "Manage Preferences" to learn more about managing your cookie preferences. According to new NielsenIQ survey data, 46% of consumers are looking to brands to take the lead on creating sustainable change. This year's forecast of sustainability trends looks like the perfect storm (in a good way) of purpose-minded, yet business opportunity-led progress. 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. Otherwise, if emissions continue to rise, meeting Paris Agreement goals could entail greater and more costly decarbonization efforts. Foodservice innovation drivers in 2023 include health and wellness, nostalgia, sustainability, and a desire for adventure. 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. Despite this, biodiversity, essential to sustaining natural capital and ecosystem services, is declining. Carbon-negative means generating environmental benefits by removing more CO2 from the atmosphere than what is produced. With the world continuing to emerge from Covid-19 lockdowns, cracks in economies, societies and environmental ambitions are becoming clearer. 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. Learn more about incorporating sustainability into your business operations to help create a future with zero emissions, zero waste, and zero inequality. An agreement reached at the U.N. climate change conference, known as COP27, for a loss and damage fund will seek to address adaptation and resilience challenges of developing countries. All rights reserved. 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. Expectations are growing for business to play a proactive role in driving efforts to secure a sustainable and inclusive future for the next generation. 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. Here are our top 10 sustainability trends we're expecting to see gain momentum and define sustainability in 2023: 1. In the report that follows, we outline nine trends we see rising in prominence in the sustainability landscape during 2023. She has worked in sustainability management, consulting, and education for more than 15 years. Essentially a digital thread, passports will track the products carbon footprint, waste, liability and risk, and more, sharing information company-wide and with suppliers and regulatory agencies. Global Sustainable Development Report (GSDR) 2023 In the longer term, this will likely lead to increased adoption of new types of energy and fuels. With most models still at an experimental stage, a tougher challenge is spreading solutions globally. 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.