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". 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. Develop fully customized programs that reflect the unique opportunities and challenges of your organization. 1. With the world continuing to emerge from Covid-19 lockdowns, cracks in economies, societies and environmental ambitions are becoming clearer. In that journey, many are also realizing that it is impossible to achieve net zero without looking outside of their traditional business. Build your core leadership skills, accelerate your career and harness your full potential as a leader. 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. 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. Some facts are encouraging: So, there is a real case for a glass half full view on climate. As a result, 91% of the global economy and 810 out of the 2,000 largest companies have pledged to net zero. Many corporate leaders find sustainability also helps deepen their organizations sense of purpose to engage and retain a new generation of employees. Outlook 2023, Sustainability: five trends to watch. Fundamentally, if we take a long-term perspective, we will deal with climate change. Moving to a cloud service provider that has made such commitments may help organizations reduce their own carbon footprint as well! All Trends Business Sustainability Our hand-picked collection of the top sustainability trends of 2023 & 2022. 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. Results-based climate finance was presented by the World Bank and others as an effective method to drive financing to projects that could generate such credits. 27 April 2023 by Frederic Barge, Karl Schmedders in Sustainability. Despite this, biodiversity, essential to sustaining natural capital and ecosystem services, is declining. mandatory biodiversity assessments and disclosures by 2030. It will likely grow even more, especially in most of North America, Europe, and in fast-growing countries in the Asia-Pacific region and the Middle East. Prodded by consumer demands and impelled by increasingly stringent regulations, the business sector has taken notice and actions to create a more sustainable future. Data in your Equity, Inclusion & Diversity strategy: friend or foe? What makes a great leader? Less noticed is the messier and increasingly relevant fact that environmental, social, and governance (ESG) topics exist both inside and outside of investors' portfolio decisions. According to the REN21 renewable energy community, we globally invested $366bn in renewables in 2021 alone. Therefore, communicating sustainability through specific claims will still open up opportunities for companies to penetrate and improve their positioning in 2023. 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. 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. The COP27 climate conference was a mixed bag. We believe that dynamic could change as companies adjust in the face of economic uncertainty and changing labor market dynamics. How do you inspire your team? Mind the ESG reporting trap! This research is based on feedback from analysts and researchers across S&P Global. 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. Can development organizations, governments, firms and private financial institutions work together with the humanitarian sector to fill the gap? While policy and regulation play catch up, how will the financial sector, firms, and consumers step up to the challenge? In fact, 57% of global professionals mentioned their company is planning to develop products with carbon-neutral claims, according to Euromonitors Voice of the Industry: Sustainability Survey 2022, fielded January 2022. Our premier, award-winning syndicated market research database provides detailed data and analysis on industries, economies, countries and consumers across 781 cities, 210 countries.. 1. For example, integrating ESG standards faces some opposition in the U.S., while in Europe and Asia, there are calls for greater action through regulations and public commitments. Regulation. 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. These are accelerating systems transformation by boosting multi-stakeholder innovation, thus reducing costs for players, surmounting obstacles, and advancing solutions adoption. Knut Haanaes, Professor of Strategy and Lundin Chair Professor of Sustainability. Companies need data transparency with detailed precision along the entire value chain. Vanina Farber, elea Professor of Social Innovation, Patrick Reichert, Term Research Professor and Research Fellow. However, the continued lack of a global climate finance taxonomy remains a challenge to bringing transparency and comparability to the space. 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. 7 sustainability trends to watch in 2023 1 In 2023, consumers will be holding brands responsible for progressing the world's state of sustainability. 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. What are material sustainability issues for your company above the standard setters guidelines? The USA's Securities and Exchange Commission (SEC) has . This years forecast of sustainability trends looks like the perfect storm (in a good way) of purpose-minded, yet business opportunity-led progress. These two events helped spotlight the links between two global environmental crises, climate change and biodiversity loss. Also, businesses should work with key stakeholders such as governments, suppliers, and competitors to build scale economies that allow the acceleration of the transition. Carbon offsets have been criticized for. 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 . 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. 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. 2023 Post-filing season update; Electric vehicle federal tax credit rules tightened as of April 18, 2023; That is not what makes for successful ESG governance. 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 The global trend of green buildings continues to rise even today. Discover all upcoming events for IMD alumni! Additionally, these practices help them reduce their environmental footprint while saving costs associated with waste and resource and energy consumption. Join us for daily exercises focusing on issues from team building to developing an actionable sustainability plan to personal development. Harnessing collaboration to enable the circular economy, Successful examples include multi-stakeholder platforms like the. 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. Another trend in sustainability that's gaining traction in restaurants is eco-friendly packaging. With all the regulatory changes ahead, 2023 will be a year dominated by managing ESG risks. Company executives and boards of directors have become more attuned to the external reporting aspects of sustainability. The global energy landscape shifted in 2022 with record prices and supply disruptions related to the Russia-Ukraine war. Some nations loosened restrictions on operating coal-fired power plants, while others extended the lives of coal and nuclear power plants. 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). Despite these headwinds, we continue to view that the sustainable debt market will help advance sustainability goals. Stphane J.G. , 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. Your subscription grants you access to the quarterly magazine plus daily articles, videos, podcasts and learning exercises. Sustainable business is so much more than reporting carbon emissions. 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. 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. ArtificiaI Intelligence, and specifically certain deep learning models such as those designed to process human language, requires huge amounts of energy. 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. 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. Also, several AI giants such as Google and Microsoft have already pledged to become carbon negative soon. Access and download reports and data purchased through Euromonitor.com. Luxury actors, traditionally fearless competitors, have come to realize that they need to collaborate to shift to positive impact. For example, carbon taxesas vital as they may be for meeting climate targetsmay continue to face a backlash as cash-strapped voters react adversely to the imposition of taxes during a recession (even if well-intentioned), particularly if these moves are perceived as a hidden government agenda to raise taxes. The market for carbon credits will continue to evolve in 2023. To that end, here are the top sustainable living trends to watch in 2023. AI: a friend and a foe for sustainability? Carlos Cordon, Professor of Strategy and Supply Chain Management. 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. Building on the visibility of nature-based climate solutions at COP26, there was an enhanced profile for nature at COP27 too. 19 April 2023 by Natalia Olynec, Julia Binder in Sustainability. It simplifies data visibility, allowing companies to record, report, and act on quality data across the value chain with built-in assurance and audit capabilities.. With the right approach, everyone can be a winner. If the current trend continues, the number of disasters could rise to 560 per year by 2030, up 40% from 2015. Euromonitor International has identified five key trends affecting the global sustainability agenda in 2023. Be a part of a pioneering community. 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. Surely thats progress that will help us breathe a little easier and live longer. Five key ESG Credit Trends for 2023 identified by Sustainable Fitch: 1. Download this insight brief to learn about the top eight ESG and sustainability trends you should expect to see in 2022 and beyond. 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. 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. Apr 26, 2023 (The Expresswire) -- 2023-2030According to our Latest Research,Sustainability Reporting Software . Natalia Olynec is the Chief Sustainability Officer at IMD, where her work focuses on research, program development, strategy, governance, reporting and advisory. Building on the key insights from World Water Week 2022, the UN Water Conference in March will focus on the water-climate nexus. However, they also face criticism because of their complexity and a continuing lack of global alignment. From battery-powered cruise ships to aviation biofuel derived from microalgae. 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. 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. According to HolonIQ we already have 47 climate unicorns worth more than $1bn. MIT Sustainability Summit. The past eight years are expected to become the eighth warmest on record, driven by rising greenhouse gas emissions and accumulated heat. In the longer term, this will likely lead to increased adoption of new types of energy and fuels. The current approach to sustainability is underpinned by guilt. 4 Sustainable Travel Innovations Shaping the Future of the Tourism Industry. Insights on Sustainability Article Toward a more orderly US energy transition: Six key action areas January 12, 2023 - The US drive to decarbonize is at an inflection point. 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. This list builds on many of the trends we identified in 2022, several of which we believe will remain relevant in 2023. Building a digital ecosystem of partners offers you a powerful lever to accelerate growth. Finally, our companies are transforming. The EU took a leadership position in creating the fund, but now it must be operationalised and made viable. Corporates investing in their own energy generation may find projects cost more in the short term. 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. This push-and-pull dynamic could be a hallmark of sustainability discussions and decisions throughout 2023. Taking a stack of post-it notes, team members write down all the things that are concerning them from their personal and professional perspectives. How do you incentivize the C-level and senior managers? 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. Critical actions could accelerate the transition while enhancing energy affordability and supporting inclusive economic growth.