ESG and Climate Trends to Watch for 2023 (2024)

FAQs

What are the 4 ESG issues for 2023? ›

We predict a growing focus on supply chain sustainability, transparency, resilience, cybersecurity and technological innovation. We also anticipate significant shifts in global supply chains along with efforts to secure greater sovereignty of supply chains for essential goods.

Increased Emphasis on the Circular Economy

Throughout 2023, the circular economy has continued to gain momentum as a key sustainability trend. Globally, companies across various sectors are increasingly adopting circular principles, such as improving recycling processes and reducing waste.

The global mean near-surface temperature in 2023 was 1.45 ± 0.12 °C above the pre-industrial 1850–1900 average. 2023 was the warmest year in the 174-year observational record. This shattered the record of the previous warmest years, 2016 at 1.29 ± 0.12 °C above the 1850–1900 average and 2020 at 1.27±0.13 °C.

2023 saw a historic high of 250 Climate Tech acquisitions, predominantly in the energy, transport, and food & agriculture sectors, the most notable of which was the acquisition of Canadian-based Carbon Engineering by U.S.-based Occidental Petroleum for $1.1B.

The 5 biggest ESG challenges for businesses and manufacturers globally are: climate change, supply chain sustainability, social impact, data privacy and cybersecurity, and governance and ethics.

Greenhouse gas pollution is at an all-time high and, according to the UN, “there is no end in sight.” The brutal fact is that temperatures will continue to rise until greenhouse gas emissions hit zero. Viewed in hindsight—say, 20 years from now—the scorching year of 2023 will likely be seen as cool and comfortable.

According to NOAA Climate Prediction Center's outlook for December-February 2023-24, the chances of a warmer-than-average winter (orange and red) are higher than the chances of a cooler-than-average winter across much of the northern part of the country, including Alaska, and most of Hawaii.

2023 marks the first time on record that every day within a year has exceeded 1°C above the 1850-1900 pre-industrial level for that time of year. Close to 50% of days were more than 1.5°C warmer than the 1850-1900 level, and two days in November were, for the first time, more than 2°C warmer.

Future changes are expected to include a warmer atmosphere, a warmer and more acidic ocean, higher sea levels, and larger changes in precipitation patterns. The extent of future climate change depends on what we do now to reduce greenhouse gas emissions.

What technology is booming 2023? ›

The technology that will be in demand in the future is likely to be those that have the potential to revolutionize the way we work, communicate, and interact with the world around us. This includes technologies such as artificial intelligence, the Internet of Things, and virtual and augmented reality.

Similarly, heatwaves that, on average, arose once every 10 years in a climate with little human influence will likely occur 4.1 times more frequently with 1.5 degrees C (2.7 degrees F) of warming, 5.6 times with 2 degrees C (3.6 degrees F) and 9.4 times with 4 degrees C (7.2 degrees F) — and the intensity of these ...

Measured by revenue, the Big Four global accounting firms include Deloitte, Ernst & Young (EY), PricewaterhouseCoopers (PwC), and Klynveld Peat Marwick Goerdeler (KPMG). The companies provide auditing services, tax, strategy and management consulting, valuation, market research, assurance, and legal advisory services.

FAQ's. 1. What are the key challenges in ESG reporting currently faced by companies? Companies are grappling with multiple ESG frameworks, evolving regulations, complex data management, quantifying and managing ESG risks, and using ESG performance to refine their sustainability plans.

Cost is a major barrier to greater sustainability, the report highlights. A lack of established standards, guidance and tools also inhibit sustainability take-up; standards such as RICS' WCLA are seeking to address this.