The NGO Forética has revealed the five ESG trends that shaped the course in 2023, amid the so-called “permacrisis.” This term, chosen as the “word of the year” in the United Kingdom, describes a prolonged period of instability and insecurity caused by catastrophic events such as the pandemic, the invasion of Ukraine, inflation, and climate change, leading to social paralysis.
In contrast, the report highlights the need to accelerate corporate action in the ESG realm. The five trends presented are:
- The Moment of Truth: Despite economic, geopolitical, and social crises, sustainability remains crucial to addressing challenges and generating global well-being within the limits of the planet.
- Sustainability on the CEO’s Mind: ESG policies become fundamental allies in addressing business challenges, with sustainability being a vital source of solutions.
- No Net-Zero Without Nature Positive: The importance of addressing biodiversity loss and degradation of natural systems is emphasized, placing nature at the center of strategies.
- Social Impact as a Key in a Turbulent Environment: Sustainability will be crucial for attracting, retaining, and developing talent, in addition to adapting to new work models and facing challenges derived from the pandemic and the green transition.
- Supply Chains and Adaptation to New Reporting Frameworks will center sustainability governance: The improvement of ESG standards in supply chains is emphasized, with due diligence regulations and a focus on human rights.
These interrelated trends reflect the complexity of the ESG landscape and underscore the need for a comprehensive view. Just as appreciating the work of an impressionist painter involves gaining perspective to understand the ESG agenda and addressing sustainability challenges and opportunities, which is expected to take center stage in the business agenda as a significant opportunity to align business activity with social and environmental challenges.
