Many restaurants now offer compostable containers and utensils that are much more eco-friendly than traditional plastic or styrofoam. These trends are expected to impact a wide range of stakeholders, from companies, investors and workers to communities, regulators and policymakers. 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 proposals from the ISSB, EFRAG and SEC all use the TCFD framework as a reference for climate-related issues, but differences remain in their specific requirements and how they treat wider sustainability issues. 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. Brands that help consumers to adopt sustainable lifestyles will be better-positioned, and therefore preferred, when conscious consumers see increasing disposable incomes again. They are developing sustainable products and services and supply chain practices to increase revenue, satisfy investors and regulators, and improve their reputation. 6. 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. In addition, ESG investors and rating agencies are holding firms accountable for their sustainability records. 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. 27 April 2023 by Frederic Barge, Karl Schmedders in Sustainability. 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 . Building on the visibility of nature-based climate solutions at COP26, there was an enhanced profile for nature at COP27 too. 2023 Euromonitor is privately owned & trademarked. 1) Changing Electric Infrastructure 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. A personalized transformation journey that teaches you how to unlock the full potential of your leadership. 1. Our world-class coaching anchors and embeds knowledge and accelerates performance and behavioral change. Since 2019, the number of people affected by food shortages has more than doubled to 345 million, roughly 4% of the world population, from 135 million, as reported by the World Food Programme. The MarketWatch News Department was not involved in the creation of this content. All Trends Business Sustainability Our hand-picked collection of the top sustainability trends of 2023 & 2022. . 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. According to HolonIQ we already have 47 climate unicorns worth more than $1bn. 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. Supporting organizations with talent assessment, development and leadership progression. Executive teams will increasingly have to address these emotional challenges. Family businesses will adopt new digital capabilities to manage sustainability data that guide sustainable business practices. In fact, a recent study by McKinsey estimated that the transition to net zero alone will provide business opportunities of $12trn per year. ArtificiaI Intelligence, and specifically certain deep learning models such as those designed to process human language, requires huge amounts of energy. Although Forrester analysts expected at. Three Energy and Sustainability Trends to Watch in 2023 Sustainability Trends 2023 | Predictions for Business, People, B2B & B2C She has worked in sustainability management, consulting, and education for more than 15 years. 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. The Intergovernmental Negotiating Committee (INC) will hold workshops over the course of 2023, with the aim of adopting the treaty in 2024. This has resulted in calls for global convergenceto support consistency and avoid confusion and additional reporting workloads for companies and investors alike. The social dimension of the challenges of climate change, climate action and sustainability has often been an after-thought, but in 2023 this dimension will rise further up the sustainability agenda. For example, long-term energy transition goals will be weighed alongside nearer-term considerations such as energy affordability and security. Carbon-negative means generating environmental benefits by removing more CO2 from the atmosphere than what is produced. These price increases are leading to renewed interest in, The global market for consumer health continues to be influenced by the pandemic, leading to tepid real growth in 2022. Euromonitor International has identified five key trends affecting the global sustainability agenda in 2023. 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. Here are the top six trends that are shaping a more sustainable future for our planet. 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. Some nations loosened restrictions on operating coal-fired power plants, while others extended the lives of coal and nuclear power plants. 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. For example, the humanitarian sector is currently experiencing a $32.3bn shortfall between funding and what the UN says is needed. Russias invasion of Ukraine disrupted energy supplies across Europe, creating energy insecurity, soaring costs, and a strong incentive for investment in renewable energy sources. 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. The need for stronger collaboration shines through the five key sustainability and climate trends I expect to see in 2023. While this tick-box approach demands 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. 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. Susan Goldsworthy, Affiliate Professor of Leadership, Communications and Organizational Change. 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. 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. According to the REN21 renewable energy community, we globally invested $366bn in renewables in 2021 alone. 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. Published May 1, 2023 + Follow As the world continues to grapple with environmental and social challenges, sustainable finance is becoming increasingly important. Amanda Williams,Term Research Professor and Research Fellow. Published: April 26, 2023 at 10:09 a.m. By understanding and implementing these 2023 sustainability trends, restaurants can stay ahead of the curve . 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. Take a scroll through our 2022 Annual and Sustainability reports. Trend watch 2023: Sustainability - NIQ - nielseniq.com The UK also intends to bring forward sustainability-related disclosure requirements at the entity and product level. Outlook 2023, Sustainability: five trends to watch 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. Discover more than 130,000 executives who are IMD alumni. 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. 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. 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. 2023 CDFI Sustainable Investing Trends - MarketWatch 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. 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. Julia Binder, Professor of Sustainable Innovation and Business Transformation. 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. As we head out of COP27, many are disappointed to see climate deterioration going much faster than any governmental moves to address the crisis. At any given time, we have at least one million green startups exploring new energy solutions. How do you incentivize the C-level and senior managers? This push-and-pull dynamic could be a hallmark of sustainability discussions and decisions throughout 2023. 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. Within three years, they said 45% of G2000 organizations will operationalize integrated sustainability in the supply chain and effectively report impact data, enabling 10% reduction in waste and improving competitive advantage. Whether it is reducing waste, optimizing the supply chain, or eliminating emissions, insights from sustainability data can help to reach net-zero emissions. The Top sustainable living trends to watch in 2023 | WFLA content 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. Boards leading on ESG drive the ESG culture of the board through its composition. We believe that dynamic could change as companies adjust in the face of economic uncertainty and changing labor market dynamics. While there is a degree of technical knowledge required, including integrated reporting methodologies and disclosure, there is the risk of a tick-box compliance focus that does not lever a real ESG identity. Net Zero & Energy: The recent focus on scope 3, carbon credits and carbon removal is set to accelerate. Top 5 Sustainability Trends for 2023 - Food Industry Executive There is an urgent need for private capital to enter frontier markets to help solve systemic grand challenges. Girod, Professor of Strategy and Organizational Innovation. 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. Many companies are working hard to meet net-zero sustainability targetsby 2050 or other target dates. In the longer term, this will likely lead to increased adoption of new types of energy and fuels. For example, the ocean and food systems had their own dedicated pavilions. Corporates investing in their own energy generation may find projects cost more in the short term. 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. 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. All this will require considerably more investments and capability building. 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. 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. The goal is to agree on a post-2020 global biodiversity framework that builds on the Strategic Plan for Biodiversity 2011-2020. Agribusinesses are particularly sensitive to water scarcity, leading to more expensive irrigation, crop damage and weak harvests, which may raise food security and supply concerns, already exacerbated by the Russia-Ukraine war. 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. But, in order for circular models to succeed, there is a need for collaboration. 1. Confrontation was always seen as an essential weapon for campaigners, but a new era of cooperation is proving equally effective. The COP27 climate conference was a mixed bag. These instruments will have to increasingly address investor questions about the effectiveness of targets and incentives. This is why specific claims such as natural, organic, and vegan enjoyed outstanding momentum during 2021, according to Euromonitors Sustainability Opportunity Tracker. Sustainable business is so much more than reporting carbon emissions. At COP15, the 2022 UN conference on biodiversity, leaders decided on our collective goals for the post-2020 global biodiversity framework and businesses. 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. 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. Collaboration between government, financiers and innovators will be key to scale up these solutions. With most models still at an experimental stage, a tougher challenge is spreading solutions globally. Here are four key trends from the ERM Sustainability Institute's 2023 Trends Report that are driving this transition: Corporate ESG disclosure will become more standardized across geographies and sectors. 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. Otherwise, if emissions continue to rise, meeting Paris Agreement goals could entail greater and more costly decarbonization efforts. This interconnected challenge presents a timely opportunity for companies that are getting serious about ambitious climate targets to account for nature and biodiversity protection in their climate targets as a means to net zero. 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. 2022 Sustainability Trends Report. 6 trends that will shape sustainability in 2023 | News | Eco-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. Best Sustainability Conferences To Attend in 2023. Building on the key insights from World Water Week 2022, the UN Water Conference in March will focus on the water-climate nexus. Being tech-savvy, the digital natives are willing to take a more data-driven approach in order to lead the way towards a net-zero future. 5 Sustainability Trends for Businesses in 2023. The market for carbon credits will continue to evolve in 2023. Studies project further losses in biodiversity by midcentury due to changes in both land use and climate, absent transformative changes to economies. Environmental, social, and corporate governance (ESG) standards and regulations are becoming a dominant force in how organizations operate, touching every part of the business. 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. Discover our campus locations in Switzerland and Singapore. 2023 CDFI Sustainable Investing Trends. Board members and top executives can make a choice today between just complying with the new standards and using this one-time change in mandatory reporting as an opportunity to prioritize sustainability even more as a key component of their strategies. 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. The Growth Summit 2023 is taking place on 2-3 May at the World Economic Forum's headquarters in Geneva, Switzerland. Therefore, for companies to remain competitive and relevant in such fast-evolving sustainability environments, proactive collaboration with key stakeholders is crucial. Promoting a strong employee experience can contribute to sustained competitiveness over the long term. Another trend in sustainability that's gaining traction in restaurants is eco-friendly packaging. 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. The 6 Biggest Sustainability Trends in 2023 - Exploding Topics Gartner researchers said that customer expectations around environmental and social sustainability will apply to the entire product life cycle, predicting that buyers will speak with their wallets by purchasing only from companies and suppliers that demonstrate authentic achievement of commitments. The firm found that 67% of organizations intend to hold supply chain leaders accountable for defined environmental and social sustainability KPIs. Setting up a loss and damage fund at COP27 was only the first step. Natalia Olynec is the Chief Sustainability Officer at IMD, where her work focuses on research, program development, strategy, governance, reporting and advisory. In order for companies to return to the environment more than they take from it, circular models are needed, as they provide resilient solutions with a triple impact on businesses, people, and the environment. An infographic based on the latest Climate Watch data highlights that energy usage contributes to 73.2% of global greenhouse gas emissions. 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. 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. We know that sustainable fashion is high on our trend predictions for 2023, but what also featured in our research was the increased use of sustainable materials. While policy and regulation play catch up, how will the financial sector, firms, and consumers step up to the challenge? 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. 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. These include Scope 3 emissions, those which do not come from their own operations but from their larger value chain. Global Sustainable Development Report (GSDR) 2023 This includes swapping packaging materials . Build your core leadership skills, accelerate your career and harness your full potential as a leader. Sustainable solutions can, and should, be affordable, so consumers do not struggle when seeking more conscious habits. Many corporate leaders find sustainability also helps deepen their organizations sense of purpose to engage and retain a new generation of employees. 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. 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.. The U.S. Customs and Border Patrol is enforcing 55 active Withhold Release Orders and targeted over 3,500 inbound shipments from 2021 to 2022. Do you need charisma? 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. Both crises call for increased focus on energy efficiency and acceleration of investment in renewables, suggesting alignment. Therefore, companies may face more scrutiny on appropriate board oversight and the maturity of their sustainability strategies and processes. Protecting and restoring biodiversity under the Convention on Biological Diversity (CBD) has been on the agenda since 2020. 19 hours ago by Winter Nie, Ivy Buche, Mahwesh Khan in Competitiveness, by Natalia Olynec Published 2 January 2023 in Sustainability 12 min read. April 13, 2023. Companies need data transparency with detailed precision along the entire value chain. Sustainability Conferences to attend in 2023. Private-public alignment is necessary to accelerate the transition towards circular models. By Jonny Bierman. Some facts are encouraging: So, there is a real case for a glass half full view on climate. Economies and nature are interconnected. With Scope 3 emission regulations on the rise and continuously changing, organizational leaders have realized the value of connected data to track, report, and reduce climate impact. In the short term, businesses of all industries and sizes will look at energy-saving measures to reduce both costs and carbon emissions. In the report that follows, we outline nine trends we see rising in prominence in the sustainability landscape during 2023. The IMD Alumni Network is a widespread but close-knit global community in a tightly interconnected and complex business environment. Corporate sustainability into action: Business Trends 2023 C-Suite Functional Directors Senior Executives Young Professionals December 1, 2021 "We only have a few years left to achieve the ambitious UN sustainable development goals we set out to achieve by 2030. Join us for daily exercises focusing on issues from team building to developing an actionable sustainability plan to personal development. In turn, this has taken a heavy toll on the sea level rising, European glacier melting, and extreme weather events from . Climate change is driving water scarcity and more severe and frequent droughts, hampering agricultural production, food supplies and economies. 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. 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. Critical actions could accelerate the transition while enhancing energy affordability and supporting inclusive economic growth. ISH 2023 Bathroom Trends | Kitchen & Bath Business Didier Cossin, Professor of Governance and Finance, Founder and Director of IMD Global Board Center, Sophie Coughlan, Associate Director, IMD Global Board Center. Our work on water stress in Jordan highlights the need for resilience. Meanwhile there are plenty of near-term business results from the sustainability wave. What makes a great leader? featured Track existing and future opportunities to support critical decision-making across all functions within your organisation. How do you inspire your team? 25 April 2023 by Arturo Bris in Sustainability. A fully online experience that takes you on an in-depth exploration of topics that matter to you.

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