The landscape of environmental, social, and governance (ESG) is rapidly evolving beyond compliance to become a cornerstone of strategic value creation and sustainable growth. As we look ahead, the landscape for business-focused sustainability will continue to evolve. Research highlights a number of emerging trends that can guide organizations on their sustainability journey, helping to secure their long-term success.
Climate change and net-zero commitments: The urgency to mitigate and adapt to climate change is escalating. According to The Big Picture: 2023 ESG Outlook from S&P Global, companies across various sectors are committing to net-zero emissions by 2050, though plans must consider an array of factors, including those affected by geopolitical events.
Ethics and integrity in focus: Businesses are increasingly scrutinized over their ESG claims. A report from PwC highlighted that the shift from rhetoric to genuine action is crucial, as greenwashing can lead to reputational damage, impaired business performance, and legal consequences. Transparency and accurate disclosure are now paramount.
Resilient and transparent supply chains: Events like the COVID-19 pandemic and geopolitical tensions have underscored the importance of secure, transparent supply chains. According to the PwC report, there's a growing expectation for businesses to report and reduce scope 3 emissions, making supply chains a key area for ESG improvement.
Workforce transition towards net zero: PwC also highlights the shift to net zero in creating demand for new skills and training, particularly in the clean energy sector. Emphasizing a 'just transition', businesses are ensuring that workforce and community shifts are equitable.
First Nations inclusion and empowerment: The role of First Nations communities in ESG performance is gaining emphasis. Businesses are exploring opportunities for these communities in sectors like clean energy and applying a First Nations perspective to their activities.
Dynamic political and regulatory landscape: According to the PwC report, ESG and sustainability are being shaped by ongoing political and regulatory changes, with expectations of more government interventions and a push for further alignment with international standards.
Orbus Software's Sustainability Lens aims to support organizations as they navigate this evolving ESG landscape. Available to all OrbusInfinity customers, the feature provides insights into an organization's sustainability maturing, with the goal of fostering a culture of informed, sustainable decision-making.