Impact Brief: Sustainability in Business Leads the Way in 2023

Nov 12

Sustainability is taking over - and its all in the news. Finally. For those working in this field, it has been a slow progression to witness over the past two-plus decades. But now it feels like we are witnessing an exponential awakening to the need for sustainability, sustainable business, and action all across the world. Akin to the spread of fungi fuelled apocalypse but better were the virus is the need to take action on climate change.

And remember "The greatest threat to our planet is the belief that someone else will save it." - Robert Swan, polar explorer

We are seeing the awakening of consumers to recognize their own role, not only to make better purchasing decisions from a sustainability perspective but also in their ability to influence brand action. From calling out, and calling in consumers are demanding better action on all aspects of sustainability from people management, to environmental action, to governance that actually takes accountability.

We are seeing the awareness of ESG in the business community. And while yes it is meant as a framework for financial materiality it has taken hold in the public discourse that can not be ignored. In that sense let’s be honest it’s so much more than ESG compliance or reporting. We know that sustainability is all-encompassing but If ESG it what sticks, it is really a foot in the door for the bigger work of sustainability to take precedence and take over at the business, investment, and government levels

We are seeing capital flowing to climate solutions. For the first time - ever- we are seeing growing numbers of capital that are being specifically directed - Climate companies.

We have more climate solution-focused funds than ever before rolling into climate technologies and solutions. In 2022 more than $40B flowed into climate, and while some major financial players are backing off others are driving full force into climate funding and building their own climate funds. I anticipate more capital being deployed in 2023 across climate, ESG, and social impact solutions. Let the climate games begin.

We are seeing sustainability being taken seriously by the corporate world. How do we know this? By putting money behind it most importantly hiring and dedicating roles and teams to sustainability - from Corporate Sustainability officers to Impact officers, roles that have finally been elevated with more decision-making power, profile, and influence within corporate structures.

We are seeing education embracing sustainability. ESG, Sustainability, Impact Measurement. There is a massive skills gap, and we all know it.

We are seeing regulators continue to build compliance regulation across US and Europe with swift implementation, and even in Canada, we see some movement toward regulation. 2022 held some critical moves for regulation as companies started to be held accountable for their successes and failures.

2023 is bound to be a pivotal year of action across the world, but also what I anticipate is a year of learning for many individuals, leaders, and companies to figure out where they stand on climate action and their long-term gameplay. As Al Gore implored in his fiery remarks at the World Economic Forum - despite all the seeming progress we are still failing, we need faster action not mere commitments and more decisive leadership.

Major Releases in 2023

New Global Risk Report

The report 'examines how widening geopolitical, economic, and societal fissures will trigger and exacerbate crises to come.' The report draws on insights from more than 1,200 experts unpacking the key challenges, risks, and dangers facing our global community and how competition and resources will play out in the future. Download the report here.

State of Green Business 2023

State of Green Business 2023 Report

The new report highlights the 10 trends shaping the world of sustainability in business. From investor interest, the growing skills gap, to increasing regulation, Green Biz explores the themes that we are bound to see grow in 2023 and beyond, positioning this year as a pivotal year for impact. Download the report here.

Circularity Gap Report

The circular economy is being touted across industries but how are we actually doing in reaching a circular economy? The Circularity Gap report - indicates we have a very long way to go with only 7.2% of the global economy being circular. But the number is actually getting worse and worse annually - primarily driven by the rising material use and extraction.

The global situation is getting worse year on year—driven by rising material extraction and use. Download the report.

Exxon Scientists Predicted Global Warning, Then Did Nothing

New York Times - Exxon Projections on Climate Change

In January New York Times covered the released study which walked through the decades-long history of Exxon scientists warning their executives of “potentially catastrophic” human-caused climate change. They have known for decades and did nothing, instead forged forward. Read the full article here and find the study here.

2023 Global 100

Corporate Knights released its annual 2023 Global 100 Most Sustainable Companies list. Companies like Schnitzer, Autodesk, Stantec, and Brambles top the list. What is most evident about the list, is the power of sustainability not only doing good but being profitable.

See the list.

Decrease in Capital with an Increase in Deals

Climate Tech VC releases its 2022 recap of capital flowing into climate innovation. Less capital but an increasing number of deals and companies paint the picture in 2022. CVVC estimates $40 Billion in capital through 1,000+ deals during the market downtick. Read the full summary.