The Top 10 Sustainability and Climate Trends to Watch in 2023
As a changing environment puts increasing pressure on society—policy makers, businesses and organizations around the globe are racing to adapt and evolve. From infrastructure to legislation to innovative tools, here are the top 10 trends in sustainability and climate to watch in 2023:
1. Stricter Sustainability Reporting
Whether it’s the EU’s new Corporate Sustainability Reporting Directive, or the U.S. Securities and Exchange Commission’s proposed climate disclosure rules, new social and climate reporting policies are being implemented with the aim of holding corporations accountable for their impact. These reports demand increased transparency, making it possible for shareholders and the public to validate an organization’s sustainability claims—and crack down on greenwashing.
2. More Net-Zero Commitments
As a growing global group of nations and organizations commit to reaching net-zero emissions targets—that is, reducing greenhouse gas emissions towards zero and using carbon-negative solutions instead—the pressure is on to develop and implement strategies that will help them achieve this goal. Many of the new climate-related reporting laws being proposed, including those of the U.S. Securities and Exchange Commission, are focussing on Scope 3 emissions, the indirect emissions created by suppliers or consumers. In 2023, we can expect to see more companies announcing ambitious net-zero targets and investing in new technologies and practices to reduce their carbon footprint.
3. Green Public Transportation
As nations work to achieve The Paris Agreement’s Net Zero by 2050 commitment, green public transportation infrastructure is being rolled out in cities around the world. In 2023, there will be a continued focus on the development of sustainable modes of transportation, including electric and hybrid buses and trains, and the expansion of renewable energy-powered airplanes. According to the International Energy Agency, adoption of electric buses is growing rapidly, with global sales increasing by 40 per cent in 2021 compared to the previous year. By 2040, electric buses are projected to account for nearly one-third of the global bus fleet.
4. Social Sustainability
In recent years, there has been a growing recognition that sustainability is about more than environmental concerns, and an increasing number of companies and organizations are monitoring the social impact of their operations as they relate to human rights, labor standards, and community engagement. According to McKinsey, more than 90 per cent of S&P 500 companies publish Environmental and Social Government (ESG) reports. The trend is set to continue in 2023, with more organizations taking steps to improve their social performance.
5. AI Adoption
Artificial Intelligence (AI) is becoming an increasingly important tool for addressing sustainability challenges. Almost 86 per cent of companies included in PwC’s 4th annual AI survey, are already using, or will soon use, AI to some extent, and this trend is expected to continue in the coming years. In 2023 we’ll likely see more companies and organizations adopting AI to improve their sustainability performance, whether it’s to optimize energy use, reduce waste, or improve supply chain efficiency.
6. Demand for Green Talent
As sustainability becomes an increasingly important focus for companies and organizations, there is a growing demand for professionals with sustainability expertise. According to the International Labour Organization, employment in the green economy is expected to create 24 million sustainability related jobs by 2030. This year, expect to see more “green” job postings for sustainability managers, energy auditors, and environmental engineers.
7. Increased Investment in Green Building
The construction industry is responsible for a significant portion of the world’s carbon emissions, with the sector accounting for 39 per cent of global CO2 emissions. To combat this issue, more companies and governments are investing in green buildings that use energy-efficient technologies and renewable energy sources to reduce their carbon footprint. By 2030, the global green building market is expected to grow to $1,312.12 billion, at a compound annual growth rate of 9.5 per cent.
8. Sustainable Agriculture
The global food system is also a major contributor to greenhouse gas emissions, with agriculture alone accounting for around 21 to 37 per cent of total GHGs. Unsustainable farming practices can have negative impacts on the environment and human health. To address this, more companies and governments are investing in sustainable agriculture practices, such as regenerative agriculture, that promote soil health, biodiversity, and carbon sequestration. The global sustainable agriculture market will grow at a compound annual growth rate of 9.9 per cent from 2022 to 2030.
9. Adoption of a Circular Economy
The circular economy is a system that aims to minimize waste and promote the sustainable use of resources by designing out waste and pollution, keeping products and materials in use, and regenerating natural systems. Essentially, it’s a framework that keeps resources—including materials and products—in circulation for as long as possible and encourages sustainable consumption. This year, there will likely be an uptick in companies adopting circular economy principles in their product and service design, and implementing circular business models that promote sustainable production and consumption. Policies are also encouraging this movement. Case in point: The EU’s Circular Economy Action Plan signed in 2020, and the EU taxonomy on sustainable activities will soon include a circular economy for the first time, helping to keep tabs on business activities.
10. Climate Action
In 2023, we can still expect to see a continued focus on climate action, with governments, companies, and organizations taking steps to address the urgent challenge of our changing environment. This includes setting ambitious emissions reduction targets, investing in renewable energy, and developing climate adaptation strategies. In order to meet the Paris Agreement’s commitment to keep global warming below 1.5 degrees celsius, greenhouse gas emissions need to be reduced by 45 per cent by 2030 compared to 2010 levels, and reach net zero by 2050.
As the world continues to strive towards a more sustainable future, count on Intengine.com to keep you updated on the latest trends and developments in this space. By working together and focusing on progress, not perfection, we can work towards creating a more sustainable and resilient future for ourselves and for generations to come.
Tags: AI, circular economy, climate action, sustainability reporting, net zero, social sustainability, green building