ESG trends to watch out for in 2023
In 2023, ESG will continue to be top priority for companies worldwide. Stakeholders such as government regulators, investors and customers are going to keep a close watch on how companies invest in, and keep up with their ESG goals and commitments. In a recent news piece by CNBC, it was reported that ESG will be a key focus especially for tech leaders, this year. Chief Information Officers across organizations are expected to be driving ESG goals since they come across opportunities to lead business transformations, leading up to meeting sustainability objectives.
Top ESG priorities
In the present business climate and going forward, CIOs will be increasingly expected to transform businesses with technology that is environmentally sustainable, minimizing carbon footprint and progressing toward achieving net zero. Corporate sustainability being at the forefront of companies’ goals, the top priorities and ESG goals for 2023 would include taking a strategic approach, limiting the use of carbon-intensive data centers, digitizing operations and migrating to the cloud, and implementing technology that helps to create and sustain a green supply chain.
Why is ESG trending?
Some of the key reasons why ESG will stay on top of mind of global corporations are regulations related to the environment, financial benefits associated with cost reduction and operational efficiencies, reputational risk in the absence of ESG action, creating a competitive edge and advantage, and new opportunities for growth. Most importantly, with the environment being the focus of the ESG agenda for governments, climate action will be on top of mind for most corporations and the role that technology and tech innovation will play in it will be of prime importance.
ESG trends in 2023
Some of the ESG trends to watch out for in 2023 include:
Sustainable Supply Chain Management. Companies have to rethink their existing supply chains in favour of building resilient ones with an end-to-end sustainable supplier network, decarbonizing the supply chain, and improving upon the human impact on the supply chain.
Decarbonization, wherein companies will be taking conscious efforts in offsetting their carbon footprint. In a bid to reach net carbon neutrality by 2050, global companies are showing up to reduce their CO2 emissions. Diversity, Equity and Inclusion will continue to be in focus in 2023 with emphasis on workforce diversity, and improving opportunities for certain economic groups.
ESG Transparency: Companies are expected to be transparent about their ESG actions and therefore ESG reporting comprising of aspects such as carbon emissions, plastic usage, waste management, employee care, corporate governance, etc will come into play. Last but not the least, Ethical Marketing will make noise in 2023 with strict observance by regulatory bodies on the language of sustainability in marketing adverts of companies vis-à-vis their action.
At Exalogic Consulting, we have a collective, rich and diverse consulting experience on ESG. We advise companies on how they can get on a path of ESG by helping them prioritize and commit to their ESG goals. If you’d like to leverage our ESG experience, contact us here.
