In 2023, Environmental Sustainability Will Become A Strategic - Forbes 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. But we need to look beyond short-term benefits and keep an eye on the long-term implications of scaling AI too. 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. More Sustainable Materials. MSc in Sustainable Management & Technology, Executives-in-Residence & Executive Fellows. By next year, IDC analysts predicted 80% of G2000 companies will capture their carbon data and report their enterprise-wide carbon footprint using quantifiable metrics compared with 50% today. In 2022, the European Financial Reporting Advisory Group (EFRAG), the U.S. Securities and Exchange Commission (SEC) and the newly formed International Sustainability Standards Board (ISSB) drafted various proposals for disclosure standards relating to sustainability and/or climate-related issues. Tackling pollution from source to sea will be increasingly important. Money matters are also driving sustainable business norms. Many restaurants now offer compostable containers and utensils that are much more eco-friendly than traditional plastic or styrofoam. 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. The EU took a leadership position in creating the fund, but now it must be operationalised and made viable. When: April 28 Where: Cambridge, Mass., and virtual Cost: $12.51-$138.43 Where to register: https://sustainabilitysummit.mit.edu The MIT Sustainability Summit is a student-run event to demystify carbon markets for aspiring and current leaders. 2022 Sustainability Trends Report. 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. 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. 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. Corporates investing in their own energy generation may find projects cost more in the short term. 5 Hottest Sustainability Trends For 2023 + How You Can Prepare For Them So it is urgent to accelerate our progress towards this objective. We extract and organise ecommerce data from over 1,500 online retailers in 40 countries providing daily updates on pricing, assortment size and key attributes. From net zero to climate-positive supply chains Heres a summary of their investment priorities. Second, we are investing. Sustainability Insights | McKinsey & Company 19 hours ago by Winter Nie, Ivy Buche, Mahwesh Khan in Competitiveness, by Natalia Olynec Published 2 January 2023 in Sustainability 12 min read. Critical actions could accelerate the transition while enhancing energy affordability and supporting inclusive economic growth. This includes swapping packaging materials . The new generation of business owners and leaders care deeply about the environment and are striving towards more sustainable and equitable business practices. And the EU looks to advance its own human rights due diligence directive and regulation restricting goods made with forced labor throughout 2023. Source: Euromonitor's Voice of the Industry: Sustainability Survey 2022. Global Sustainable Development Report (GSDR) 2023 Urging business leaders to think further ahead, these analysts predicted a carbon flip after an intensive period of innovation in climate mitigation technologies that is already under way, to be followed by roughly 20 years of implementation for scalable solutions and replacement of carbon-based technologies.. Despite these headwinds, we continue to view that the sustainable debt market will help advance sustainability goals. The need for stronger collaboration shines through the five key sustainability and climate trends I expect to see in 2023. Sustainability and ESG in 2023 | Bain & Company 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. Published May 1, 2023 + Follow As the world continues to grapple with environmental and social challenges, sustainable finance is becoming increasingly important. An unprecedented level of co-operation and solidarity is now required to unleash the funds potential. Moving to a cloud service provider that has made such commitments may help organizations reduce their own carbon footprint as well! 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. 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. 2023 Trends: New waves of ESG integration - erm.com Here are the top 5. As it matures and evolves across asset classes and geographies, Andy Howard, Global Head of Sustainable Investment, considers the future of ESG and impact. Follow this link to learn more about our cookie policy and how we use cookies. Dedicated to the advancement of knowledge on world competitiveness. This research is based on feedback from analysts and researchers across S&P Global. We need a more constructive engagement between the US-led West and non-Western countries. Learn more about our world-class faculty team. All stakeholders will bear the impacts from physical risks related to climate change. Look out for 2023: Sustainability trends A series of workshops under the Glasgow Sharm El-Sheikh Work Programme (GlaSS) during 2023 aims to pave the way for adoption of the framework at COP28 in Dubai in late 2023. We help businesses, policymakers, financiers, investors, NGOs and others achieve sustainability goals, faster. Against a backdrop . Gartner researchers said the ability to efficiently navigate the global regulatory environment and scale compliance systems will offer companies a significant competitive advantage. Julia Binder, Professor of Sustainable Innovation and Business Transformation. Also, several AI giants such as Google and Microsoft have already pledged to become carbon negative soon. 5 Major Sustainability Trends For 2023 - GoSquared Blog In the US, the SEC is slated to enact more ESG regulations for investors, while the UK Plastic Packaging Tax is expected to transform global supply chains worldwide. Discover our campus locations in Switzerland and Singapore. 2. But that wasnt really the expectation at what was dubbed an implementation COP, where the focus was on how to turn pledges and commitments into real-world actions and solutions. Given the current challenging economy, it is essential that companies keep abreast of sustainability trends as they evolve, and understand the direct impact on business performance to remain competitive. Several initiatives, such as the Global Reporting Initiative and ISSB collaboration or Net Zero Guidelines from the International Organization for Standardization, may play a role in harmonizing the various standards. Three Energy and Sustainability Trends to Watch in 2023 The need for stronger collaboration shines through the five key sustainability and climate trends I expect to see in 2023. Sustainability Trends in 2023 for Businesses and Investors 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. Didier Cossin, Professor of Governance and Finance, Founder and Director of IMD Global Board Center, Sophie Coughlan, Associate Director, IMD Global Board Center. 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. content ArtificiaI Intelligence, and specifically certain deep learning models such as those designed to process human language, requires huge amounts of energy. 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. Underpinning all of the changes that are likely to take place in 2023 are various sustainable regulation packages being implemented by governments across the globe. Data in your Equity, Inclusion & Diversity strategy: friend or foe? Unsurprisingly, sustainability was one of the key . 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. There is unanimous agreement that 2023 will be a challenging year across global markets. Therefore, companies may face more scrutiny on appropriate board oversight and the maturity of their sustainability strategies and processes. 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. Visit our Sustainability page and Sustainability store for further insights. Top Sustainability Trends of 2023 - Glimpse 5 Sustainable Finance Trends to Watch in 2023 - LinkedIn 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 sustainability trends in 2023 are predicted to plunge beyond eco-friendliness. By Jonny Bierman. 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.. Therefore, for companies to remain competitive and relevant in such fast-evolving sustainability environments, proactive collaboration with key stakeholders is crucial. In watches and jewellery, transformation started later, perhaps due to the longer life cycle of these products and their smaller volumes. 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. Stakeholder pressures on companies keep rising. Your subscription grants you access to the quarterly magazine plus daily articles, videos, podcasts and learning exercises. Affordable sustainability There is unanimous agreement that 2023 will be a challenging year across global markets. Policymakers and senior executives need to navigate the increasing complexity of simultaneous climate and cost-of-living crises. 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. It is not enough to just claim that the products are better for the planet or more sustainable, if there is no arguable evidence behind these claims. The Russian attack on Ukraine and subsequent surge of refugees, growing inflation, and lingering concerns about the COVID-19 pandemic also raise doubts about governments ability to ensure an inclusive society. We tend to think about collaboration as an external challenge but the key to success lies in redesigning organizations that can align incentives around impact and mobilize complementary resources to achieve it. First, the world is searching for new solutions. Boards leading on ESG drive the ESG culture of the board through its composition. 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. These two events helped spotlight the links between two global environmental crises, climate change and biodiversity loss. By next year, IDC analysts predicted a quarter of organizations worldwide will demonstrate responsible leadership by increasing their sustainability-related digital technology spend by more than 25% from 2022 levels. Supporting organizations with talent assessment, development and leadership progression. Collaborative systemic solutions require new approaches to fragility and call for alternative sources of capital to complement traditional grant funding. Through this process, leaders co-create the conditions where people can flourish amidst adversity. However, meeting these objectives will require actors to undergo organizational transformation: NGOs will need to be receptive to more market-based approaches, governments will need to provide stable policies and backstop the riskiest initiatives, development finance institutions will need to identify opportunities to provide additionality (i.e., focus on interventions that would have not occurred without their participation), and corporates will need to be willing to collaborate with traditional non-market actors. New regulations drive sustainability strategy. Carbon-negative means generating environmental benefits by removing more CO2 from the atmosphere than what is produced. featured These macroeconomic and market conditions could constrain issuer appetite for GSSSB offerings. They also involve measures to enhance the working environment, supply chain emissions, employee well-being, and ethical reporting. 2 Sustainability Trends 2023 - What to expect? - LinkedIn 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. Authors: Andrew Angle, Aiste Brackley, Justin Nelson, Laura Street, Mark Lee. Nevertheless, Here are a few of my predictions for trends that will shape sustainability in 2023. Ecosystems & Resources: A new global biodiversity framework will set the stage for rising global scrutiny and collaboration on nature. Five Key Trends Shaping the Sustainability Agenda in 2023 In that journey, many are also realizing that it is impossible to achieve net zero without looking outside of their traditional business. In 2022, efforts to integrate ESG into corporate policies and investment decisions faced diverging pressures, either for lack of or inadequate action or for going too far. 1) Changing Electric Infrastructure Consequently, many companies introduced new incentive structures, benefits, workplace culture initiatives (flexible work, DEI strategies and efforts to improve work-life balance) and career development opportunities to promote the employee experience and better attract and retain talent. 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.