Why 2023 is the year for sustainability action: An analysis

As the world grapples with the impact of climate change and environmental degradation, it's clear that the time for inaction is over. And with the start of a new year, many companies are taking notice and taking substantive actions to accelerate the journey to sustainability.

According to a report by Deloitte, a growing number of companies are expected to prioritise sustainability in 2023, as business leaders seek to end the disconnect between ambition and impact. This shift is being driven by a variety of factors, including increased regulatory pressure, consumer demand for environmentally friendly products and services, and a growing recognition of the business case for sustainability.

One major driver is the rise of ESG (environmental, social and governance) investment. A growing number of investors and shareholders are using ESG criteria to evaluate the sustainability performance of companies, leading to increased pressure for businesses to improve in these areas. A survey from PWC found that nearly 70% of institutional investors now consider ESG factors in their investment decisions. Meanwhile, a study by the Harvard Law School Forum on Corporate Governance revealed that shareholder activism in regard to ESG concerns is on the rise. 

“Investors increasingly view corporate attention to ESG criteria as closely linked with business resilience, competitive strength, and financial performance,” the Harvard report said.

But it's not just investors and shareholders who are driving the sustainability agenda. Consumers are demanding more from the companies they choose to do business with. In addition to regulatory pressure and consumer demand, companies are recognising the business case for sustainability. 

By reducing carbon emissions, water usage and waste, businesses can lower their operating costs and increase their competitiveness in the long run. According to a report by McKinsey, companies that prioritise sustainability can enjoy improved brand reputation, increased customer loyalty, and a stronger licence to operate.

With all of these factors in play, it's clear that 2023 is shaping up to be a pivotal year for sustainability action. Companies that fail to take notice and make genuine progress towards sustainability risk falling behind their competitors, as well as facing increased scrutiny from investors, consumers and regulators. The good news for those that embrace sustainability is that they can position themselves for long-term success and stake a claim as leaders in the transition to a more sustainable future.

#Sustainability2023 #ESGInvestment #BusinessLeadership #ClimateChangeAction #CarbonEmissionsReduction