The year has just begun and if you were short of ideas: improving on sustainability should be your number one resolution. Businesses and consumers face sustainability challenges in 2023 that are impossible to ignore, watch out for these trends which can help you achieve your sustainability resolutions and targets for the year ahead.
Corporate reporting requirements are expanding and will impact businesses of all sizes across the world. Key regulations will require transparent disclosure of information in the environmental, social, and governance areas.
Looking at the Morningstar Sustainalytics’ latest corporate and ESG report, the most important motivator for ESG action is meeting regulations and compliance with 83% of respondents considering it very important. To cope up with these requirements, British SMEs plan to increase their spend on sustainability related activities with a strong focus on initiatives for assessing the climate crisis such as low-carbon transport, sustainable materials, and recycling. In fact, reducing carbon emissions is by far the top ESG priority for 2023.
With regulations expanding and becoming more and more complex, some organisations still perceive it as a tick box exercise, failing to interpret and use the data to create better business opportunities. Overall, we’ve seen an urgent need to draw insights that inform the business strategy, help make better decisions, and implement sustainability practices.
Understanding and creating sustainable supply chains will be key to identify your true impacts as an organisation. With the majority of carbon emissions embedded in your supply chain, mapping out your suppliers and their products (Scope 3) will be the only route to achieve your climate commitments.
But this is not only about the planet, understanding where your products come from and who is involved in the process will become increasingly important for your brand and reputation as consumers start to demand fair and transparent products. S&P Global estimate that in 2023 companies will invest more resources into addressing the impact on human rights in their own operations and in their supply chains.
In conclusion, sustainability is gaining momentum and businesses are expected to respond to these requirements. If you’re not sure where to start, check out the Supply Chain Sustainability School, a free learning platform that help companies upskill employees and suppliers for the transition to a more sustainable future.