Waste minimisation, carbon footprint reduction, eco-friendly packaging, safe and fair working conditions, and a commitment to human rights are widely regarded as the top 5 (HiveBrands) sustainable activities by consumers.
The world is beginning to realize that the climate crisis will be an enormous threat, far greater than the issues posed by the Covid epidemic. That means the buyers are increasingly influenced by "conscious customers," or individuals who consider issues like environmental impact and sustainability crucial when deciding which companies to support monetarily or professionally.
In a nutshell, the companies should also care about the world around them, if they do they tend to make better judgments overall, which is good for business too. Embracing eco-friendly procedures is a great way for businesses to cut costs, boost earnings, and improve their corporate citizenship.
What Is Sustainability?
Sustainability, in its broadest meaning, is the capacity to keep a process going without interruption for an extended period of time. The goal of sustainability in economics and public policy is to ensure that finite resources like energy and materials are preserved for future generations. It is estimated that $26 trillion might be saved by the year 2030 (TheNewClimateEconomy) if the globe adopted more sustainable habits.
In order to achieve sustainability, policies and practices must take into account long-term impacts on people and the ecosystems. This idea goes hand in hand with the widespread conviction that our world will be irreparably damaged if current trends in its management are not altered dramatically. Sustainable business practices and rising investments in green technology have led to a global trend towards sustainable activities and legislation in response to growing worries about human-caused climate change, biodiversity loss, and pollution.
Corporate Sustainability
Sustainability is a broader concept than merely environmentalism when applied to business. To evaluate the environmental and social impacts of a company, sustainable practices are meant to have a beneficial effect.
This perspective on accountability inspires firms to strike a balance between short-term gains and long-term success, with the ultimate aim of pursuing inclusive and environmentally sustainable goals. A wide variety of methods fall under this umbrella. Reducing carbon emissions, decreasing energy use, purchasing goods from fair-trade organizations, and appropriately disposing of physical waste are all steps in the right direction.
In 2023, it will be crucial for businesses to make ESG (environmental, social, and governance) practices core to their operations. It's important to establish concrete metrics for assessing the social and environmental effects of a company's operations. Every company requires a unique strategy to limit its negative consequences, complete with specific aims and timelines, and supported by concrete steps to take.
Sustainability trends to follow in 2023
-
Maintaining a sustainable lifestyle is becoming the norm.
Sustainable consumer goods seem to have displaced their non-sustainable predecessors in just about every retail category these days. Every industry, from agriculture to the fashion industry to the manufacture of consumer goods, is experiencing a period of transition right now. It's safe to assume that in the coming years, the demand for environmentally friendly goods will force manufacturers to oblige with a mandate for their manufacture.
-
Make the switch to a circular economy.
This movement is in its infancy, but it's gaining momentum rapidly. The move to a circular economy is becoming increasingly clear as more sectors learn to embrace a model of production and consumption that emphasizes the reuse, repair, refurbishment, and recycling of existing materials and goods.
-
Climate risk disclosure is mandated by law.
Companies and organizations need to be open about the effects they have on the environment if meaningful change is to be accomplished. Greenhouse gas emissions, water and waste disposal, and product lifetime environmental impacts all fall under this category. The good news is that governments in more and more places are passing laws requiring corporations to disclose their carbon footprint, energy consumption, and social impact. Organizational closures due to poor social and environmental performance would send a strong message that insufficient climate action is serious business. In order to succeed in the future, businesses must adopt a culture of accountability, credibility, and increasing openness.
-
"Climate positive" has replaced "net-zero."
Even while "net-zero" is all the rage now, and tremendous efforts are being made by both small businesses and large corporations to reach this milestone by 2050, it is anticipated that the ultimate aim will eventually eclipse the current fad. That's why we're aiming to become carbon negative at the end of this process. To get here from the point of climate neutrality, where we are actively working to reduce glasshouse gas emissions while maintaining current levels of removal, we must eventually remove more glasshouse gasses than we release. This is a higher priority because it is the only way to guarantee a stable climate for future generations.
-
The cost of renewable energy is low.
The era in which fossil fuels were the cheapest form of energy to produce is over. Since the turn of the century, the price of renewable energy sources like wind and solar has dropped so much that they are now competitive with fossil fuels.
-
Public disclosure of climate concerns is mandated by law.
Because of this, shareholders will be more vigilant and activist, which will have a significant impact on companies' share prices, financing alternatives, and investors' willingness to invest. Companies who are ahead of the curve and can demonstrate effective risk management and positive contributions to society and the environment will enjoy greater success. There will be repercussions for those who aren't.
-
Electric automobiles will be popular.
If we take a look at the EC market for electric vehicles, we can see some very interesting new models appearing. When more people see that these cars are stylish and practical, they are more likely to choose for electric powertrains. Prices are decreasing as well, making it more reasonable to buy. They used to be too pricey for most people, but nowadays they're more affordable. And once you have one, you may never want to give it up!
-
Sustainable alternatives.
The idea that everyone can adopt a "climate-friendly" lifestyle, where small changes in what we eat, where we shop, how we travel, what we invest in, and how we vote all add up to huge societal impacts, is what will allow us to collectively cope with the climate catastrophe. A waste-free, Covid-free lifestyle is predicted to be a major trend in 2023, along with mitigating the effects of a particularly wasteful year (considering how many masks are discarded every day, many of them being carelessly discarded on the streets).
-
Eco-friendly products will quickly replace the standard way.
The next generation, Generation Z, is largely responsible for the rise of the sustainable goods market. Sustainable goods will become the norm for consumers in the coming months and years. Gen Z is the first generation to truly understand the gravity of environmental problems like global warming and biodiversity loss, and they are doing everything in their power to find solutions. More than half of these young individuals, according to the available data, give a company's environmental and social initiatives high or very high weight when making a purchasing decision. Your company needs to take environmental and sustainability seriously if it wants to attract clients from Generation Z, who are gaining greater spending power as they enter the workforce.
-
ESG investments will continue to grow in popularity.
As the name implies, ESG (Environmental, Social, and Governance) investing prioritizes environmental and social responsibility. Following the outbreak, ESG has risen to prominence as a leading sustainability movement. In these trying times, investors and businesses are turning beyond profitability to other, more intangible factors.
-
Carbon Offsets Will Become More Popular.
Carbon offsetting refers to the practice of compensating for the release of glasshouse gasses into the atmosphere in place of their production. If a business or institution pays for carbon-offset initiatives that reduce emissions of glasshouse gasses or stop the release of some of those gas, they have "offset" their carbon footprint. The process of offsetting carbon emissions might be as easy as planting trees, or it can include a number of steps (e.g. investing in carbon capture technology). We anticipate that by 2023, carbon offsetting will have entered the public consciousness with the growing interest in "net zero" emissions. Although some may still view offsets as greenwashing, this perception is likely to shift as more trustworthy options emerge, bringing with them high-quality offset initiatives.
-
The problem of maintaining clean air grows.
Both mental health and immune system enhancement will be at the forefront of wellness trends in 2023. In 2023, clean air will be a major issue due to high-profile examples of children's deaths that have been linked to traffic-related air pollution in urban areas. The significance of air quality was brought into sharp light after the world viewed images of filthy skylines during the pandemic. In addition, clean air is essential for health and wellness, especially given the continued prevalence of respiratory diseases like coronavirus. In 2023, enhancing air quality is expected to be a major concern.
-
Sustainable packaging is the key to a better tomorrow.
69% (Hivebrands) of consumers say that sustainable packaging is the most important practice.
The use of packaging is likely the second most detrimental component of human conduct threatening the future of the world, right behind the consumption of energy. The ubiquitous plastic cover and its packaging have made it to even some of the most remote corners of the world, where millions of people may have little or no access to electric vehicles or even traditional transportation. The number of countries with stringent limits on single-use plastics has more than doubled in the previous five years. Businesses are also making adjustments to their procedures to comply with the evolving regulatory landscape.
Global Sustainability
The term "global sustainability" refers to a set of conditions in which humans and other organisms, society and the biosphere, the world and the Earth may coexist in ways that are mutually beneficial and stable enough to provide for future generations.
Global sustainability refers to the use of resources across the planet. In this situation, the global population is considered as a whole that must divide up the limited resources on offer rather than giving priority to any one region. "Three E's" refer to economic growth, environmental progress, and social justice; all three are integral to the idea of global sustainability (or development).
Benefits of Sustainability in Business
There are monetary rewards for businesses that successfully implement sustainability plans, in addition to the social benefits of enhancing the environment and addressing human needs. Cutting waste and pollution can help a firm save money, and increasing the efficiency with which it uses its resources can improve its long-term survival. An organization's sustainability efforts may also increase their appeal to potential investors.
Sustainable business practices are good for business, employees, and the environment for many reasons. Some of them are following -
-
Save Money
Businesses can save costs in numerous different ways. However, the corporation and the environment both profit when new policies and practices are adopted that are more ecologically friendly. The cost of powering a business can be cut in half just by adopting energy-saving practices. Businesses that consume a lot of electricity, including factories and stores, might benefit greatly from energy saving measures.
-
Better Financial Result
Profits for sustainable companies are higher because they save money on operational expenses and generate more revenue per employee.
-
Enhanced reputation
As was previously said, there has been a rise in demand for eco-friendly goods and services. A company's sales, profitability, and market share can all rise if it adopts sustainable practices because of the positive attention they receive from the public. In addition, sustainability can assist a firm improve its reputation among community stakeholders and government officials by demonstrating the company's commitment to these same issues.
-
Increased happiness in the workplace
Sustainable businesses benefit from a more productive workforce and reduced turnover rates since their employees are happier and more invested in their work. A sustainable company is more likely to give its employees a pleasant place to work that has adequate ventilation, natural lighting, and ergonomic furnishings. Two outcomes that may be improved by these measures are increased productivity and decreased absenteeism. Ethical treatment of employees is also linked to sustainable business operations.
-
Greater sense of duty to the community
Businesses that care about their community are more likely to be sustainable. For instance, it raises the company's appeal among customers looking to back shops that are working to better their local communities. As well as being beneficial for the company and the community in the long run, it is also beneficial for the company.
.jpg)
Why Is Sustainability the Right Choice for Your Business?
The world we live in is constantly evolving. Both company opportunities and threats are always shifting. Over the past few decades, businesses have been subjected to a number of big trends that have permanently altered their way of thinking, leading, and conducting themselves.
Although sustainable development was first established over a decade ago, it has not yet reached its full potential. For enterprises in particular, sustainability's genuine application is far more extensive and in-depth. Many customers are supporting businesses that make efforts to improve their social responsibility by spending their money there. They are purchasing from, and lending their voices to, businesses that are actively working to reduce their environmental impact.
Being environmentally conscious gave rise to the concept of business sustainability.
Some sectors have been compelled to alter the ways in which their processes and products affect the environment and their customers in order to comply with new regulatory requirements and the demands of community special interest groups. Early adopters were skeptics at first, but they eventually saw the positive effects of sustainability initiatives on both the environment and their bottom line. Business sustainability measures have proven immensely beneficial for early adopters in terms of profit, customer happiness, stakeholder benefits, and community relations.
Will your organization lead the way in environmentally responsible practices or fall behind the competition? Ultimately, the decision is up to you.
Also Read - Top Sustainability Trends 2022: Taking a Greener Approach
Conclusion
The biggest changes towards a healthier planet are in energy, mobility, construction, finance, packaging, and carbon capture, all of which have been spurred on by the rising tide of interest in sustainable living.
The concept of "net zero emissions" is giving way to "climate positivity," the market for sustainable goods is booming after a slow start last year, ESG investing is becoming the dominant financial strategy, and more and more municipalities and states are mandating that businesses report their energy consumption and emissions.
Retailers are making efforts to lessen their environmental footprint in response to rising consumer demand for environmentally friendly goods. They're making efforts to lessen their contribution to global warming, recycle more, and cut down on trash. However, 2023 sustainability trends are about more than just being green. In addition, there are initiatives geared on enhancing the quality of the workplace and the health of the staff. Companies use data and technology to help them achieve these objectives.
Start the Journey to ESG Regulation Compliance
It is not necessarily tough to adhere to ESG rules. Organizations that stay ahead of the curve in the face of new rules will have done so because their ESG teams have invested in nimble, automated systems that can adapt to changing requirements in the regulatory landscape.
With a presence in New York, San Francisco, Austin, Seattle, Toronto, London, Zurich, Pune, Bengaluru, and Hyderabad, SG Analytics, a pioneer in Research and Analytics, offers tailor-made services to enterprises worldwide.
A leader in ESG Consulting services, SG Analytics offers bespoke sustainability consulting services and research support for informed decision-making. Contact us today if you are in search of an efficient ESG integration and management solution provider to boost your sustainable performance.
