Top 10 Trends: How Sustainability & ESG Are Changing Businesses

Sustainability and ESG (Environmental, Social, Governance) principles are reshaping businesses by driving them to adopt eco-friendly practices, prioritise social responsibility and maintain transparent governance. This shift not only aids in combating climate change but also enhances corporate reputations, secures investor confidence and ensures long-term profitability.

What is Sustainability?

Sustainability refers to the practice of meeting current developmental needs without compromising the ability of future generations to meet their own, particularly in the context of climate change and global development challenges.

Source: United Nations

What is ESG?

ESG (Environmental, Social, Governance) encapsulates three critical areas – environmental stewardship, social responsibility and ethical governance – where companies assess non-financial risks and opportunities related to their operations. This framework guides businesses in sustainable and socially responsible decision-making.

Source: Deloitte

How are Sustainability & ESG Trends Shaping Business?

1.) International Investors Look for ESG Performance as a Key Metric for Business Resilience:

Companies that emphasise strong governance and transparent processes are better positioned to garner stakeholder trust and secure sustainability. According to a recent EY study, 90% of international investors now consider ESG performance a crucial indicator of a company’s long-term resilience, underscoring its growing impact on business stability.

2.) Increased Focus on the “Social” Aspect of ESG, with Business Leaders Making Diversity & Inclusion an Integral Part of Their Agenda

Businesses are increasingly focusing on the “social” component of ESG by integrating diversity and inclusion into their core strategies. This shift, amplified by trends like the Great Resignation, emphasises employee wellbeing as crucial to productivity and success. Evidence shows that firms with diverse executive teams are 25% more likely to achieve higher profitability.

3.) Increased Investor Demand & Pressure for ESG Practices in Business

Investors are increasingly demanding ESG practices in business, with 85% considering these factors crucial in their investment decisions. This shift is driven by a growing focus on sustainability within the investor community, highlighting the significant role of investor pressure in steering businesses towards sustainable practices.

4.) Climate Disclosure is Shaping Sustainability Commentary

Climate disclosure is increasingly central in sustainability discussions as new regulations, like the EU’s CSRD and CSDDD and upcoming SEC rules, take effect. These standards demand more than just net-zero commitments; they require companies to demonstrate credible strategies for achieving these goals, emphasising transparency and accountability in sustainability reporting.

Source: Economist Impact

5.) Nature Intelligence is Rising

The rise of nature intelligence is fuelled by the need for precise data to meet new regulatory disclosures on environmental impact, such as the EU’s Corporate Sustainability Reporting Directive. As over 50,000 companies adapt to these requirements in 2024, technologies like environmental DNA, earth observation and AI will become crucial for collecting and analysing nature-related data, driving demand for specialised ‘nature intelligence’ services.

6.) Supply Chains are Under More Scrutiny

Supply chains are facing heightened scrutiny due to ESG and sustainability demands, with mandates for companies to disclose Scope 3 emissions and human rights due diligence processes across their value chains. Additionally, the EU’s anti-deforestation law requires firms to verify commodity origins, enhancing traceability. Emerging AI-powered carbon management technologies are anticipated to revolutionise supply chain transparency in 2024.

Source: World Business Council for Sustainable Development

7.) Increasing Focus on Ethics & Integrity in ESG Performance

Amid rising scepticism and growing consumer demand, there is an intensifying focus on ethics and integrity within ESG performance. Over 60% of consumers now base their purchasing decisions on sustainability and ethical criteria, with this trend increasing annually. Investors are similarly demanding thorough, data-backed analyses to inform their ESG-focused investments, pushing companies to uphold higher standards of ethical conduct and transparent reporting.

8.) Public & Private Sector Representatives Implement Climate Action Commitments Through Innovation

In 2024, both public and private sectors are poised to transform their climate action commitments into action through innovation. Companies are recognising that beyond meeting their net-zero targets, creating solutions for others offers substantial long-term value. Notably, China’s industry innovations and commitment to sustainability are driving rapid progress towards its 2060 carbon neutrality goals, serving as a model for global efforts. Innovative technologies like direct air capture, advanced batteries and hydrogen electrolysers are pivotal, potentially reducing 15% of cumulative emissions from 2030 to 2050, driving climate change mitigation efforts.

9.) The Global Focus on Achieving Net Zero Emissions Surges Forward

The global drive toward net-zero emissions has surged, with many nations aiming to achieve this by 2050 in line with the Paris Agreement. This goal has galvanised businesses across sectors to set ambitious sustainability targets, invest in renewable energy and innovate in carbon reduction strategies. The potential market for carbon-neutral goods and services could reach $10.3 trillion by 2050, reflecting the economic benefits of such initiatives. In 2024, a major focus will be on the transition to clean energy, as evidenced by the discussions at the United Nations’ COP28 summit.

10.)Working from Home Will Become Normal for Sustainability Purposes

Working from home is set to become the norm as it significantly cuts emissions by reducing daily commutes and lowering energy use in office buildings, with people working from home all the time predicted to reduce their emissions by 54%. This sustainable practice not only benefits the environment but also promotes healthier lifestyles. As hybrid work models evolve, we can anticipate further innovations in remote working, moving away from traditional, congested commuting to centralised office spaces.

Who Are the Top Sustainability & ESG Speakers to Hire?

The best sustainability speakers to hire are knowledgeable, engaging experts with a proven track record in environmental issues. They bring real-world experiences, actionable insights and inspire audiences to commit to eco-friendly practices and sustainable development in both personal and professional realms.

Top 5 Sustainability & ESG Speakers to Hire:

The below speakers are the perfect choice when looking to discover what trends will shape the future of ESG and sustainability. The Sustainability Speakers Agency’s expert selection of the top 5 sustainability & ESG speakers are:

1.) Dr Sally Uren – Chief Executive of Forum for the Future

2.) Nigel Topping – UN Climate Change High-Level Champion

3.) Kate Brandt – Chief Sustainability Officer of Google

4.) Jeremy Schwartz – Chairman of Sustainability & Diversity Transformation Practice for Kantar & Consultant for Maxius Advisory ESG

5.) Alexandra Palt – Chief Corporate Responsibility Officer of L’Oréal

Hire a Sustainability & ESG Speaker Today!

If you are interested in hiring a sustainability or ESG speaker, contact The Sustainability Speakers Agency today! Our expert booking agents will secure the top speakers to help you better understand the sustainability and ESG trends that will shape 2024 and beyond!

Call a booking agent on 0203 9355 587 or complete our contact form to begin the booking process.