Reflections on Davos 2024: If We Act Decisively, Rebuilding Trust is Within Our Grasp

Radical change, transparency and accelerating actions were some of the phrases I heard repeatedly while at the World Economic Forum’s Annual Meeting in Davos, Switzerland, last week.?The 2024 theme was "Rebuilding Trust." It reflects a growing global concern about a decline in trust – in institutions, governments and businesses.?

What exactly is trust? To me, it is an elemental belief in an inherent accuracy, reliability and accountability. And unfortunately, we’ve seen an erosion in trust over time that has been attributed to a variety of factors including:

• The increasing complexity of global challenges, such as climate change and inequality
• The spread of misinformation and disinformation
• The growing power of technology and its potential for misuse

Is it possible to regain trust? I believe it is. But it will take actions, not just words, particularly when it comes to regaining stakeholder confidence in a company's environmental and climate commitments.?Business leaders must adopt concrete steps that demonstrate genuine progress and transparency – actions that do not need to come at the expense of business growth and profitability.??

To regain trust, we need to look at the issues that are of importance to consumers today. A key concern is the global water crisis, which has been exacerbated by climate change. And while climate change was not at the forefront of conversations at Davos this year, with 2023 being the hottest year on record, the impact on the planet and consumers cannot be ignored.??

To better understand this, Ecolab launched a global consumer study in 2023 to identify trends, enhance education and generate action across industry stakeholders.

The Importance of Water

The inaugural Ecolab Watermark Study examined the state of water stewardship across the globe by measuring water’s importance, usage, connection to climate, and responsibility for conserving it among key consumer populations around the world. ?

Among its findings:

• Access to clean and safe water is a paramount concern for consumers in every region. Latin America (92%), China (85%) and the U.S. (81%) have the highest percentage of consumers who are more concerned about access to clean and safe water than other climate-related issues, such as pollution or climate change.
• Consumers hold governments and businesses most responsible for water conservation.??
• Consumers believe that industry has no clear plan to address water scarcity, despite the perceived responsibility and importance. This concern is most evident in China (82%), Latin America (78%) and IMEA (78%), but also noticeably visible in Europe (66%), the U.S. (65%) and Asia/Pacific (60%).??

The study results demonstrate that consumer purchasing motives and decisions are changing. More and more, they are influenced by climate, water and recyclability considerations. To meet these shifting demands, the private sector must invest and develop products and technologies that address the benefits that consumers seek. Whether it’s responding to the growing opportunity around electrical vehicles or reusable materials in the food and beverage industry, the potential is there.

If the private sector does not take the lead, consumers will forge their own paths. In fact, in response to a perceived lack of accountability on the part of businesses, consumers are already adopting environmentally friendly buying behaviors. According to the study, they are willing to stop purchasing products that require a significant amount of water to produce and pay more for goods that are produced through sustainable business practices, particularly in IMEA (88%), China (85%) and Latin America (81%).??

Where to Begin?

Rebuilding trust starts by successfully navigating global challenges to help businesses grow profitably and become more resilient, so they are better prepared for what comes next.?Rebuilding trust also involves taking small yet significant steps.?

A case in point: One of the less publicized outcomes from COP28 in Dubai was a significant commitment to energy efficiency.?It’s a pledge to double the global average annual rate of energy efficiency improvements from approximately 2% to more than 4% a year until 2030.?While that may not seem like a lot, the impact will be huge.??

In fact, Ecolab has found that more efficient water management in production processes can reduce water consumption by up to 44%, energy use by up to 22% and greenhouse gas emissions by up to 12%. It’s proof that proven technologies and solutions can drive both climate and water management. We don’t have to go the moon to accomplish our goals. We can achieve a great deal through existing technologies and, by doing so, help shore up the trust gap with consumers and other key stakeholders.

One silver lining from the Ecolab Watermark Study findings was that, despite the challenges, consumers remain optimistic that the water crisis can be mitigated with proper and immediate action. Through prompt and decisive measures, businesses can co-create a future of optimism and trust. For companies, it’s not about declaring bold pledges or goals, it's about action, impact and good business.?