Against a backdrop . At any given time, we have at least one million green startups exploring new energy solutions. The MarketWatch News Department was not involved in the creation of this content. Ecosystems & Resources: A new global biodiversity framework will set the stage for rising global scrutiny and collaboration on nature. 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. Three Energy and Sustainability Trends to Watch in 2023 The Summit brings together leaders from business, government, civil society, and academia to shape a new future of work that is inclusive, sustainable, and equitable. Best Sustainability Conferences To Attend in 2023. 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. 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. Progressive employment practices implemented in the wake of COVID-19 will be tested by cost-cutting related to economic uncertainty. That said, we believe developing countries can only sustain so much debt to finance rising losses and lost revenues from physical climate risks. Despite these headwinds, we continue to view that the sustainable debt market will help advance sustainability goals. Another trend in sustainability that's gaining traction in restaurants is eco-friendly packaging. First, the world is searching for new solutions. 8 Sustainability Trends to Expect in 2022 | Wolters Kluwer 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 . 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. 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.. /esg/insights/featured/special-editorial/key-sustainability-trends-that-will-drive-decision-making-in-2023 Policy incentives will also continue to emerge to stimulate innovation, help tackle climate change and fund the shift to clean energy. Additionally, these practices help them reduce their environmental footprint while saving costs associated with waste and resource and energy consumption. Brands that help consumers to adopt sustainable lifestyles will be better-positioned, and therefore preferred, when conscious consumers see increasing disposable incomes again. Source: Euromonitors Voice of the Industry: Sustainability Survey 2022. Key insights such as 'The Future of Jobs' report will map . 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. Inspiration, a mini-series with Lorange Network and IMD, Business transformation: incumbents must not assume the right to win, Executive pay: balancing sustainability with profitability, We need a realistic, fact-based approach to sustainability, Reframing sustainability: from risk to opportunity, Activists are not the enemy,so lets work together. 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. The EU taxonomy on sustainable activities will start to include the circular economy for the first time from January 1st 2023, thus accelerating the incorporation of circularity in the investment communitys scrutiny of corporate activities. 2023 Post-filing season update; Electric vehicle federal tax credit rules tightened as of April 18, 2023; 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. Social Sustainability: The cost-of-living crisis intensifies, but offers opportunities for more-inclusive climate action. In 2023, Environmental Sustainability Will Become A Strategic - Forbes Our work on water stress in Jordan highlights the need for resilience. In 2023, we think broader market conditions will continue to influence GSSSB issuance. From 2023 we may see more second-hand, vintage and repurposing brands becoming central to the way we shop. 2023 Trends: New waves of ESG integration - erm.com It is not a question of whether, it is a question of when. In this context, practical solutions that can accelerate progress on the SDGs will be urgently needed. In fact, a recent study by McKinsey estimated that the transition to net zero alone will provide business opportunities of $12trn per year. The final drafts of these standards should be adopted in 2023. COP27 in November 2022 was quickly followed by the U.N.'s Convention on Biological Diversity, known as COP15. Sustainability is good for business, and not just because it mitigates regulatory compliance risk. For the same reasons, we expect that company and investor lobbying activities will come under greater scrutiny to ensure that they are consistent with public commitments to both sustainability and fiduciary mandates. 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. However, the continued lack of a global climate finance taxonomy remains a challenge to bringing transparency and comparability to the space. 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. With most models still at an experimental stage, a tougher challenge is spreading solutions globally. Before we discuss the 2022 sustainability trends, we wanted to begin by reflecting on our 2021 edition and take stock of how our predictions played out. Sustainability trends 2023: Top ways retailers will make a difference According to the REN21 renewable energy community, we globally invested $366bn in renewables in 2021 alone. 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. All rights reserved. The following issues are key in that discussion: Answering those questions and going beyond just complying with mandatory sustainability reporting standards is key to gaining and maintaining competitive advantage in the future. The past eight years are expected to become the eighth warmest on record, driven by rising greenhouse gas emissions and accumulated heat. 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. 2022 Sustainability Trends Report. Explore more than 75+ Executive Education programs at IMD. COP27 failed to achieve any major breakthroughs in areas such as phasing out fossil fuels. The human element of sustainability | Deloitte Insights 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. Consequently, in 2023, we anticipate the durability of new employee-friendly workplace practices will be tested. Empowering senior teams to identify opportunities for growth and transformation. The current approach to sustainability is underpinned by guilt. A fully online experience that takes you on an in-depth exploration of topics that matter to you. 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. 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. For many years, sustainability has remained top of mind for food and beverage processors and consumers. 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). 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,. Source: Euromonitor's Voice of the Industry: Sustainability Survey 2022. 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. 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. 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. We believe that dynamic could change as companies adjust in the face of economic uncertainty and changing labor market dynamics. Experience IMD for yourself, join one of our upcoming events. 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. Regulation. In 2023, we believe more investors and companies will seek to assess the social and financial costs associated with water scarcity and droughts. Discover our campus locations in Switzerland and Singapore. Firms are advised to get ahead of the game and start accounting for biodiversity. Enabling organizations to meet their learning objectives, in a more impactful, convenient and flexible way. That is the hardest part, as usually 90-99% of a companys greenhouse gas emissions are Scope 3. To save on energy bills, firms will renovate buildings to prevent heating loss and implement digital solutions for temperature controls, shut off lighting and equipment when not in use, and replace less efficient outdated equipment. This has resulted in calls for global convergenceto support consistency and avoid confusion and additional reporting workloads for companies and investors alike. During COP15, the International Sustainability Standards Board (ISSB) announced that it will research the link between climate and nature. Sustainability Trends 2023: Goodbye Greenwashing, Hello - Forbes Peter Vogel, Professor of Family Business and Entrepreneurship, Ivan Miroshnychenko, Research Fellow and Term Research Professor. Luxury actors, traditionally fearless competitors, have come to realize that they need to collaborate to shift to positive impact. New regulations drive sustainability strategy. So it is urgent to accelerate our progress towards this objective. 1. Go on - they only take five minutes. 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. content Be a part of a pioneering community. Promoting a strong employee experience can contribute to sustained competitiveness over the long term. In that publication, we suggested 2021 . Data in your Equity, Inclusion & Diversity strategy: friend or foe? Ocean-related climate solutions will be crucial to making progress on global climate and nature targets in 2023, following the 2022 UN Ocean Conference. An unprecedented level of co-operation and solidarity is now required to unleash the funds potential. However, companies need to back-up their announcements and messages on certified claims, considering upcoming stricter regulation, as governments and savvy consumers are demanding transparency and accountability. With the world continuing to emerge from Covid-19 lockdowns, cracks in economies, societies and environmental ambitions are becoming clearer. 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. According to Deborah Kaplan, global head of sustainability at SAP Customer Success, corralling and understanding tons of disparate data is the biggest challenge for organizations regardless of where they sit on the sustainability preparedness spectrum. 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. Mind the ESG reporting trap! But in the near term, if economic conditions continue to deteriorate and labor market resilience wanes, companies may face calls from investors to scale back more progressive workplace practices. 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. They place them all on the wall, acknowledging and accepting them. Private-public alignment is necessary to accelerate the transition towards circular models. They also involve measures to enhance the working environment, supply chain emissions, employee well-being, and ethical reporting. Unlock your purpose and create positive, lasting change in your career, organization and society. Corporate 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. Collaboration will also be needed to accelerate the building of circular economies. Protecting and restoring biodiversity under the Convention on Biological Diversity (CBD) has been on the agenda since 2020. The 2023 Global Sustainable Development Report will be launched as the world approaches the half-way point of the 2030 Agenda and struggles to rebuild in the aftermath (or in the midst) of the COVID-19 pandemic. ISH 2023 Bathroom Trends | Kitchen & Bath Business This shift has been fueled by increasing energy insecurity, rapidly changing regulatory and reporting standards, and investor appetite for environmental, social and governance (ESG) performance. From net zero to climate-positive supply chains This year's forecast of sustainability trends looks like the perfect storm (in a good way) of purpose-minded, yet business opportunity-led progress. Family businesses will adopt new digital capabilities to manage sustainability data that guide sustainable business practices. Therefore, for companies to remain competitive and relevant in such fast-evolving sustainability environments, proactive collaboration with key stakeholders is crucial. April 13, 2023. 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. Gartner researchers said the ability to efficiently navigate the global regulatory environment and scale compliance systems will offer companies a significant competitive advantage. Economies and nature are interconnected. Log in here to join in the conversation with the I by IMD community. We forecast that total global bond issuance will increase modestly in 20231 as rate rises subside, but inflation risks remain, and global growth is set to stagnate or even tip into recession in some regions. Studies project further losses in biodiversity by midcentury due to changes in both land use and climate, absent transformative changes to economies. 1. 2. 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. 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. 10 Trends That Will Define Sustainability in 2023 - LinkedIn Through this process, leaders co-create the conditions where people can flourish amidst adversity. Russias invasion of Ukraine disrupted energy supplies across Europe, creating energy insecurity, soaring costs, and a strong incentive for investment in renewable energy sources. In turn, this has taken a heavy toll on the sea level rising, European glacier melting, and extreme weather events from . The We Mean Business Coalition and the Voluntary Carbon Markets Integrity Initiative have continued moving towards better regulation and standards for carbon credits. These are accelerating systems transformation by boosting multi-stakeholder innovation, thus reducing costs for players, surmounting obstacles, and advancing solutions adoption. Policy incentives will also continue to emerge to stimulate innovation, help tackle climate change and fund the shift to clean energy. Via helps you navigate a fast-changing digital marketplace. 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. 2023-2030 Sustainability Reporting Software Market is - MarketWatch Climate change is driving water scarcity and more severe and frequent droughts, hampering agricultural production, food supplies and economies. Brief. estimated that the transition to net zero alone will provide business opportunities of $12trn per year. 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. Carlos Cordon, Professor of Strategy and Supply Chain Management. 2023 Restaurant Sustainability Trends - Foodservice, Zero Waste One such law, the German Supply Chain Due Diligence Act, goes into effect in January 2023 and requires covered companies to conduct human rights and environmental due diligence to identify risks, remedy issues and establish grievance mechanisms, among other things. We are the independent guide to sustainability, helping our audience cut through the noise and supporting them as they achieve sustainability goals and reach outcomes with actual business value. The Intergovernmental Negotiating Committee (INC) will hold workshops over the course of 2023, with the aim of adopting the treaty in 2024. Were seeing customers replace time-consuming, inaccurate manual approaches with a holistic steering and reporting solution like SAP Sustainability Control Tower. Droughts impact major economies, including Europe, the U.S. and China, raising prices and creating potential food shortages that disproportionately impact the worlds most vulnerable communities. 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. Only 18% of global respondents mentioned they are currently investing or planning to invest in supporting their suppliers to decrease carbon emissions, according to Euromonitors Voice of the Industry: Sustainability Survey 2022 , fielded January 2022. 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. 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. 5 Major Sustainability Trends For 2023 - GoSquared Blog AI: a friend and a foe for sustainability? Transform Your Innovation Strategy with Megatrends, Earth Day 2023: Now Is the Time to Take Climate Action, Plant-Based Products Boost Sustainability in Asia Pacific, Retailer Corporate Strategies in Private Label. For this to be achieved, companies need to measure direct (scope 1) and indirect (scope 2 and 3) emissions. Trend watch 2023: Sustainability - NIQ - nielseniq.com Gartner Identifies the Top 10 Strategic Technology Trends for 2023 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. This is why specific claims such as natural, organic, and vegan enjoyed outstanding momentum during 2021, according to Euromonitors Sustainability Opportunity Tracker. Around 70% of global professionals mentioned their companies face at least some pressure from competitors, governments, and consumers, according to Euromonitors Voice of the Industry: Sustainability Survey 2022. Look out for 2023: Sustainability trends Knut Haanaes, Professor of Strategy and Lundin Chair Professor of Sustainability. 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. I by IMD is produced by the Institute for Management Development, Unleashing the Power of Data and Digital Ecosystems (Management on the Cutting Edge), Lifelong learning. 5 Sustainability Trends in 2023 and Beyond - DHL Express NZ In addition, ESG investors and rating agencies are holding firms accountable for their sustainability records. What Recent Trends Say About Sustainable Shopping In 2023 - Forbes In the report that follows, we outline nine trends we see rising in prominence in the sustainability landscape during 2023. A risk-focused mindset could be preventing businesses from developing the ambitious strategies they need to capitalize on the opportunities of sustainability 28 March 2023 by Etelle Higonnet in Sustainability.
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