As we begin the new year, environmental, social, and governance (ESG) issues continue to be at the forefront of discussions around business and sustainability. The past few years have seen a significant shift in the way that companies approach ESG, and 2023 is expected to be no different. In this blog post, we’ll take a look at some of the trends and predictions for ESG in 2023 and beyond.
First, according to a recent article from Environmental Leader, the adoption of ESG is only set to increase. In fact, the report predicts that by 2025, more than half of all assets under management (AUM) globally will be invested in strategies that incorporate ESG. This is a significant increase from the 20% of AUM invested in ESG strategies in 2020.
Additionally, the article highlights the increasing importance of climate risk in ESG strategies. As the impacts of climate change become more apparent, investors are demanding more transparency and action from companies. This means that companies will need to focus on reducing their carbon footprints, increasing their use of renewable energy, and disclosing their climate-related risks and opportunities.
Another interesting trend to watch in 2023 is the focus on ESG in the telecommunications industry. Outlook India recently published an article outlining five ESG trends to expect in telecommunications in 2023 and beyond. These trends include an increase in green telecom infrastructure, the adoption of circular economy principles, and a greater focus on data privacy and security.
Finally, Harvard Law School’s blog, the Harvard Law School Forum on Corporate Governance, recently published an article discussing where the world is headed in 2023 and beyond. The article discusses the increasing importance of stakeholder capitalism, the need for companies to have strong ESG policies, and the impact of technology on ESG. Its important to measure ESG and its potential impact on your business. Science4Data has a unique technology allowing corporations to measure there ESG Impact Scores.
The trends and predictions for ESG in 2023 and beyond show that ESG is only going to become more important for businesses. Companies will need to focus on reducing their carbon footprints, increasing transparency, and embracing circular economy principles to stay competitive in the marketplace. With the increasing importance of stakeholder capitalism, companies will also need to prioritize their relationships with employees, customers, and communities. It is clear that ESG is not just a trend, but rather a fundamental shift in the way that businesses operate, and companies that embrace ESG will be well-positioned for success in the years to come.