We have all noticed how our family, friends, and even businesses are starting to take environmental action. This shift has been happening since the world realizes the importance of eco-friendly living for future generations.
The Woman Post | Catalina Mejía Pizano
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According to the 2022 edition of the National Footprint and Biocapacity Accounts, today humanity uses the equivalent of 1.75 piles of earth to provide the resources we use and absorb our waste. But why is this trend taking place? In short, people and companies are becoming motivated to adopt eco-friendly habits, because of the scientific evidence that global warming is not only real but concerning and problematic!
It is also true that the global COVID-19 pandemic has also played its part in accelerating the sustainability trends that were already gaining momentum. According to research performed by McKinsey, companies with high ESG (Environmental, Social, and Governance) ratings outperform the market average in both medium and long-term earnings. Let's look at the most evident sustainable business trends that we can expect for 2022.
1. Renewable Energy Will Become Cheaper
The time has come to wave goodbye to those days when fossil fuels were the most cost-effective source of energy. As mentioned by a report by the International Renewable Energy Agency (IRENA), of the wind, solar and other renewables that came on stream in 2020, nearly two-thirds (62%) were more economical than the most inexpensive new fossil fuel.
2. Transparency Requirements Will Increase
Although UN regulations required organizations over a certain size to report on environmental data, to hold them accountable, the outcome document of COP26, known as the Glasgow Climate Pact, took this further. The mentioned document calls on 197 countries to report their progress towards more climate ambition next year at COP27 which will take place in Egypt.
Also read: HAVE YOU HEARD OF ECO-FRIENDLY GLITTER?
3. Data Will Be Essential
Calculating the effects of sustainability measures is not an easy task for organizations. This is why businesses will benefit from data analytics practices to make the most out of their ESG. Pirelli is a good example of a company that is already implementing this approach, analyzing usage data recorded by sensors in its tires, to make informed decisions about what inventory to stock, avoiding waste.
4. People Will Continue To Work From Home
Working from home began as an obligation and necessity during the pandemic. It is highly beneficial for the environment too! When we stay at home for work, we reduce the emissions that arise from driving to work and we also lower the energy used by office buildings. Companies such as Twitter and Shopify are committed to implementing home-office full-time, even when the pandemic restrictions are over.
5. Sustainable Investing Will Increase
Deloitte reported that 53% of financial service films say that sustainability is or will become central to the organization. Additionally, according to CNBC, during 2020, ESG funds captured $51.1 billion of net new money from investors. The trend will go on, and therefore sustainability investment will increase and new opportunities will come for business leaders who are passionate about environmental and sustainability affairs.
It is therefore evident that sustainability trends will increase in 2022, not only at an individual level but as a corporate practice! Have you thought about how your company could get better when implementing eco-friendly measures? Today is a good opportunity to reflect on how we can all do better when taking care of our planet.