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. These trends are expected to impact a wide range of stakeholders, from companies, investors and workers to communities, regulators and policymakers. Confrontation was always seen as an essential weapon for campaigners, but a new era of cooperation is proving equally effective. Policymakers and senior executives need to navigate the increasing complexity of simultaneous climate and cost-of-living crises. New regulations drive sustainability strategy. Finally, our companies are transforming. These two events helped spotlight the links between two global environmental crises, climate change and biodiversity loss. The Top sustainable living trends to watch in 2023 | WFLA 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. 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. Thus, the need for sustainable trends will also possibly increase in 2023. The COP27 climate conference was a mixed bag. Here are the top six trends that are shaping a more sustainable future for our planet. 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. Key insights such as 'The Future of Jobs' report will map . 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. Published May 1, 2023 + Follow As the world continues to grapple with environmental and social challenges, sustainable finance is becoming increasingly important. This years forecast of sustainability trends looks like the perfect storm (in a good way) of purpose-minded, yet business opportunity-led progress. A total of 60% of family businesses with strong digital capabilities, surveyed by PwC in 2021, placed sustainability at the core of their daily operations. The need for stronger collaboration shines through the five key sustainability and climate trends I expect to see in 2023. Also, several AI giants such as Google and Microsoft have already pledged to become carbon negative soon. 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. Collaboration between government, financiers and innovators will be key to scale up these solutions. During COP15, the International Sustainability Standards Board (ISSB) announced that it will research the link between climate and nature. Automobile and fashion have had by far the heaviest adverse impacts on the environment and society, so actors operating in these two sectors have been ahead of the pack in reversing this trend. 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. 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. Green Construction Trends That Are Emerging in 2023 Carbon offsets have been criticized for. Executive teams will increasingly have to address these emotional challenges. 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. Carlos Cordon, Professor of Strategy and Supply Chain Management. 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. In the report that follows, we outline nine trends we see rising in prominence in the sustainability landscape during 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. 5 Sustainable Finance Trends to Watch in 2023 - LinkedIn Mind the ESG reporting trap! IDC analysts predicted by 2024, 30% of organizations will use ESG data management platforms to steer ESG KPIs through a centralized system of record for reporting purposes and real-time operational decision-making support. 5 Major Sustainability Trends For 2023 By Rachael O'Flaherty Sustainability requires us to reduce our impact on climate change in every way possible. Top Sustainability Trends of 2023 - Glimpse 2023 Euromonitor is privately owned & trademarked. Prodded by consumer demands and impelled by increasingly stringent regulations, the business sector has taken notice and actions to create a more sustainable future. Circular solutions such as second-hand and previously owned products are also gaining traction amongst global consumers as, according to Euromonitors Voice of the Consumer: Sustainability Survey, fielded January to February 2022, 34% of global respondents mentioned their willingness to buy these products. All this will require considerably more investments and capability building. 5 Major Sustainability Trends For 2023 - GoSquared Blog They also involve measures to enhance the working environment, supply chain emissions, employee well-being, and ethical reporting. Environmental catastrophes are becoming more frequent, so stricter regulations, such as extended producer responsibility (EPR), and waste management and recycling policies, are expected to be seen in more markets to channel efforts towards governments long-term sustainable targets. Peter Vogel, Professor of Family Business and Entrepreneurship, Ivan Miroshnychenko, Research Fellow and Term Research Professor. 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. The COP27 United Nations Climate Change Conference in Egyptand the UN Biodiversity Conference COP15 in Montreal stressed the need for business to create action plans to mitigate human influence on the climate and on nature. 4 Sustainable Travel Innovations Shaping the Future of the Tourism The new generation of business owners and leaders care deeply about the environment and are striving towards more sustainable and equitable business practices. The provisional agreementin the EU for new regulation for deforestation-free supply chain will mean many companies will have to better understand biodiversity risk. Beyond capturing new markets, transforming your business towards sustainability is also a way to address changing customer and investor needs, as well as to attract and retain talent. At COP27 countries finally made progress on establishing a framework for a Global Goal on Adaptation (GGA). The top strategic technology trends for 2023 are: Sustainability Sustainability traverses all of the strategic technology trends for 2023. 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. Firms around the globe are shifting their focus on sustainability from talk to action. Despite economic uncertainty, consumers keep demonstrating interest in sustainable products to remain true to their values, opting for products that use inputs such as water and energy more efficiently, which consequently helps them reduce costs. 2023 CDFI Sustainable Investing Trends. The luxury industries have continued in 2022 to accelerate innovation towards greater sustainability. The past eight years are expected to become the eighth warmest on record, driven by rising greenhouse gas emissions and accumulated heat. Access and download reports and data purchased through Euromonitor.com. Source: Euromonitors Voice of the Industry: Sustainability Survey 2022. What's Next for Sustainable Business? Global Sustainable Development Report (GSDR) 2023 With the right approach, everyone can be a winner. In that journey, many are also realizing that it is impossible to achieve net zero without looking outside of their traditional business. Were seeing customers replace time-consuming, inaccurate manual approaches with a holistic steering and reporting solution like SAP Sustainability Control Tower. Many companies are working hard to meet net-zero sustainability targetsby 2050 or other target dates. Storytelling and expertise from marketers, SAP BrandVoice: Green Customer Experiences Drive Ongoing Growth For Midsize Businesses. Therefore, for companies to remain competitive and relevant in such fast-evolving sustainability environments, proactive collaboration with key stakeholders is crucial. What kind of regulation forecast mechanism is needed to be prepared for changes in standard setting at different levels (ISSB, EU regulation, etc.)? 7 sustainability trends to watch in 2023 1 In 2023, consumers will be holding brands responsible for progressing the world's state of sustainability. Plastic-Free Living It's no secret that plastic pollution is a major environmental issue. 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. 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. What are material sustainability issues for your company above the standard setters guidelines? 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. Some sectors, including utilities, oil and gas, and agribusiness, are more exposed to water stress than others and will face greater operating and financial challenges. 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. Most companies struggle to measure scope 3 emissions, as they still need to work more closely with their suppliers. While most cases have been against companies and investors for not doing enough on climate issues, we have seen an increase in lawsuits pushing back against ESG-related work or investment policies. 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. 2022 Sustainability Trends Report. 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. yk Ik, Professor of Digital Strategy and Cybersecurity. One simple exercise can be powerful in creating a more inclusive, productive environment. Moving to a cloud service provider that has made such commitments may help organizations reduce their own carbon footprint as well! 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). Valuable flows of goods (such as food and commodities) and ecosystem services (such as the climate regulation that occurs when oceans and forests store carbon) support economic growth and human wellbeing. 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. This has been reflected in more litigation, with an increasing number of climate-related lawsuits against corporates. Policy incentives will also continue to emerge to stimulate innovation, help tackle climate change and fund the shift to clean energy. Brands that help consumers to adopt sustainable lifestyles will be better-positioned, and therefore preferred, when conscious consumers see increasing disposable incomes again. Look out for 2023: Sustainability trends Our world-class coaching anchors and embeds knowledge and accelerates performance and behavioral change. Top Digital Sustainability Trends In 2023 | Kitcast Blog What Recent Trends Say About Sustainable Shopping In 2023 - Forbes As a result of COVID-19 and the intense competition for talent amid a period of exceptionally high employee turnover, employee expectations around health, well-being, culture, flexibility and benefits have evolved over the past two years. 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. 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. In the longer term, this will likely lead to increased adoption of new types of energy and fuels. The top 5 sustainability and climate trends to watch in 2023 An opportunity lens on sustainability. Private-public alignment is necessary to accelerate the transition towards circular models. Despite this, biodiversity, essential to sustaining natural capital and ecosystem services, is declining. A New Era for Sustainability Accountability Last year we saw an influx. 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. 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. In that journey, many are also realizing that it is impossible to achieve net zero without looking outside of their traditional business. All Trends Business Sustainability Our hand-picked collection of the top sustainability trends of 2023 & 2022. 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. Net Zero & Energy: The recent focus on scope 3, carbon credits and carbon removal is set to accelerate. In 2023, we think broader market conditions will continue to influence GSSSB issuance. We will go through the whole energy transition, and we will build a circular economy. 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. 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. For this to be achieved, companies need to measure direct (scope 1) and indirect (scope 2 and 3) emissions. Grow your network and explore the latest thinking on todays critical business challenges and opportunities. Although Forrester analysts expected at. Boards leading on ESG drive the ESG culture of the board through its composition. The final drafts of these standards should be adopted in 2023. 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. This includes swapping packaging materials . These are accelerating systems transformation by boosting multi-stakeholder innovation, thus reducing costs for players, surmounting obstacles, and advancing solutions adoption. In watches and jewellery, transformation started later, perhaps due to the longer life cycle of these products and their smaller volumes. What makes a great leader? 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. Collaboration within and outside ecosystems in circular economy solutions is central to unlock benefits that organizations cannot achieve on their own. For example, the humanitarian sector is currently experiencing a $32.3bn shortfall between funding and what the UN says is needed. In 2023, we think countries and companies will consider balancing energy security, affordability and the energy transition in a context of high inflation and rising interest rates. Many corporate leaders find sustainability also helps deepen their organizations sense of purpose to engage and retain a new generation of employees. In the short term, businesses of all industries and sizes will look at energy-saving measures to reduce both costs and carbon emissions. 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. Some facts are encouraging: So, there is a real case for a glass half full view on climate. ISH 2023 Bathroom Trends | Kitchen & Bath Business Beyond capturing new markets, transforming your business towards sustainability is also a way to address changing customer and investor needs, as well as to attract and retain talent. 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. In the wake of the plastics treaty milestone, a new committee on chemicals was also set up. 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. Euromonitor International has identified five key trends affecting the global sustainability agenda in 2023. So it is urgent to accelerate our progress towards this objective. 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. They place them all on the wall, acknowledging and accepting them. Knut Haanaes, Professor of Strategy and Lundin Chair Professor of Sustainability. Unilever Hearts of Palm Ceviche. Sustainability Insights | McKinsey & Company Learn more about our world-class faculty team. They are developing sustainable products and services and supply chain practices to increase revenue, satisfy investors and regulators, and improve their reputation. , led by the Ellen McArthur Foundation and the United Nations Environment Program, through which 500 signatories such as Nestl, PepsiCo, Coca-Cola, Unilever, Mars, and LOral which together utilize 20% of all plastic packaging produced globally have committed to ensuring that all plastic packaging is reusable, recyclable, or compostable by 2025, among other circularity goals. A personalized transformation journey that teaches you how to unlock the full potential of your leadership. Build your core leadership skills, accelerate your career and harness your full potential as a leader. 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. From single-use water. How do you inspire your team? In 2022, the U.S. stepped up the enforcement of laws aimed at restricting imports of goods believed to be made in whole or in part with forced labor. In fact, only 10% of global professionals consider that their company is very effective at communicating sustainability to consumers, according to Euromonitors Voice of the Industry: Sustainability Survey 2022. Building on the key insights from World Water Week 2022, the UN Water Conference in March will focus on the water-climate nexus. 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. Affordable sustainability There is unanimous agreement that 2023 will be a challenging year across global markets. Top Emerging Trends of Sustainability in 2023 and Beyond 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. Companies need data transparency with detailed precision along the entire value chain. Progress on ESG goals can be encouraged by aligning compensation policies to the long-term impact that organizations have on financial, social, and environmental value creation. The market for carbon credits will continue to evolve in 2023. For many years, sustainability has remained top of mind for food and beverage processors and consumers. While policy and regulation play catch up, how will the financial sector, firms, and consumers step up to the challenge? 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. Supporting organizations with talent assessment, development and leadership progression. 1. Inconsistent ESG data availability and quality hinder corporate ESG efforts and impact. What are the new sustainability KPIs that are at the heart of your strategy execution? With most models still at an experimental stage, a tougher challenge is spreading solutions globally. Sharing emotions for healthy, sustainable high performance, Luxury developing sustainable supply chains, Board composition and responsibilities adapt to ESG purpose, Innovation, investment, and business transformation fuel climate hopes. Discover more than 130,000 executives who are IMD alumni. Go on - they only take five minutes. 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. The global trend of green buildings continues to rise even today. Follow this link to learn more about our cookie policy and how we use cookies. Ecosystems & Resources: A new global biodiversity framework will set the stage for rising global scrutiny and collaboration on nature. The Intergovernmental Negotiating Committee (INC) will hold workshops over the course of 2023, with the aim of adopting the treaty in 2024. April 13, 2023. 2023 Restaurant Sustainability Trends - Foodservice, Zero Waste Best Sustainability Conferences To Attend in 2023. Join us for daily exercises focusing on issues from team building to developing an actionable sustainability plan to personal development. Building on the visibility of nature-based climate solutions at COP26, there was an enhanced profile for nature at COP27 too. From 2023 we may see more second-hand, vintage and repurposing brands becoming central to the way we shop. First, the world is searching for new solutions. Vanina Farber, elea Professor of Social Innovation, Patrick Reichert, Term Research Professor and Research Fellow. Apr 26, 2023 (3BL Media via . 8 Sustainability Trends to Expect in 2022 | Wolters Kluwer Develop fully customized programs that reflect the unique opportunities and challenges of your organization. Despite these headwinds, we continue to view that the sustainable debt market will help advance sustainability goals. 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. 1. 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. 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. 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. 13 sustainability trends driving business in 2023 - I by IMD 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. The picture looks especially complicated in Europe, where new investment in liquefied natural gas and a slower phaseout of coal could challenge decarbonization plans. Many boards have responded to increasing ESG pressures by recruiting a sustainability specialist. By their nature, they process huge amounts of data, and all those data centers carrying out storing and processing tasks require a lot of energy for cooling.
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