sustainability trends 2023

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. 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. What is your plan to transition into the low-carbon era under different scenarios? 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. In 2023, we believe more investors and companies will seek to assess the social and financial costs associated with water scarcity and droughts. Vanina Farber, elea Professor of Social Innovation, Patrick Reichert, Term Research Professor and Research Fellow. 1. However, we still anticipate GSSSB issuance to grow to between $900 billion and $1 trillion in 2023 compared to nearly $850 billion in 2022 as the asset class capitalizes on various initiatives to fill the climate financing gap. Another trend in sustainability that's gaining traction in restaurants is eco-friendly packaging. 5 Hottest Sustainability Trends For 2023 + How You Can Prepare For Them All this will require considerably more investments and capability building. 4 Sustainable Travel Innovations Shaping the Future of the Tourism Go on - they only take five minutes. Growth Summit 2023: Here's what to expect | World Economic Forum 8 Sustainability Trends to Expect in 2022 | Wolters Kluwer Fundamentally, if we take a long-term perspective, we will deal with climate change. Family businesses will adopt new digital capabilities to manage sustainability data that guide sustainable business practices. 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. One simple exercise can be powerful in creating a more inclusive, productive environment. Be a part of a pioneering community. Explore more than 75+ Executive Education programs at IMD. Progressive employment practices implemented in the wake of COVID-19 will be tested by cost-cutting related to economic uncertainty. In that publication, we suggested 2021 . Most companies struggle to measure scope 3 emissions, as they still need to work more closely with their suppliers. The new generation of business owners and leaders care deeply about the environment and are striving towards more sustainable and equitable business practices. 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. Here are the top six trends that are shaping a more sustainable future for our planet. The Intergovernmental Negotiating Committee (INC) will hold workshops over the course of 2023, with the aim of adopting the treaty in 2024. 6. 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. 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. April 28, 2023 . COP27 in November 2022 was quickly followed by the U.N.'s Convention on Biological Diversity, known as COP15. 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. In fact, a recent study by McKinsey estimated that the transition to net zero alone will provide business opportunities of $12trn per year. The human element of sustainability | Deloitte Insights 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. Only limited material is available in the selected language. Our experts offer actionable insights through first-person narratives, behind-the-scenes interviews and The Help Desk. Companies have been struggling to communicate sustainability to consumers. And the search for high-quality carbon credits, including those based on marine natural capital (so-called blue carbon such as seagrass, mangroves and tidal marshes), will accelerate. Gartner researchers said the ability to efficiently navigate the global regulatory environment and scale compliance systems will offer companies a significant competitive advantage. There is unanimous agreement that 2023 will be a challenging year across global markets. 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. In the wake of the plastics treaty milestone, a new committee on chemicals was also set up. It is not a question of whether, it is a question of when. In a few years, almost all companies around the world will have adopted mandatory sustainability reporting standards either because they were obliged to by law or because they can no longer resist stakeholder pressures. 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. 7 sustainability trends to watch in 2023 1 In 2023, consumers will be holding brands responsible for progressing the world's state of sustainability. Consumers still want to positively impact the environment, and expect companies to play their part in democratising sustainability; therefore, understanding the sustainability landscape will help companies to identify risks and seize new opportunities. 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. In 2023, we believe companies and investors will have to prepare for reporting under a number of new and complex sustainability disclosure standards and adapt as they continue to evolve. Litigation risk has also given rise to a new trend named by some as "greenhushing", whereby companies may refrain from disclosing details of their sustainability goals and practices for fear of being penalized for the information released. Learn more about incorporating sustainability into your business operations to help create a future with zero emissions, zero waste, and zero inequality. Can development organizations, governments, firms and private financial institutions work together with the humanitarian sector to fill the gap? An opportunity lens on sustainability. Of particular note was how consumers are approaching healthy living in the Beauty & Personal Care category. Supporting organizations with talent assessment, development and leadership progression. Here are five of the hottest sustainability trends they identified, as well as how you can prepare for them. Experience IMD for yourself, join one of our upcoming events. Building on the visibility of nature-based climate solutions at COP26, there was an enhanced profile for nature at COP27 too. Resilience & Adaptation: There will be further progress on loss and damage and the global adaptation goal.

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