The Six Sustainability Trends That Will Impact Business in 2022
Even though 2020 saw a reduction of more than 8% in global carbon emissions — the sharpest decline in history — but this was undoubtedly due to the global Covid-19 pandemic. Unfortunately, 2022 is full of setbacks for sustainability and global climate goals.
Sustainability is not a fad, this is a challenge that must be faced together with real solutions and to raise public and corporate awareness over our collective impact on the environment. Sustainable business operations are on the rise as global efforts increase to build a more environmentally friendly society.
It is clear that more people are ready to tackle the climate crisis in a better way, but it takes support and commitment from companies and governments. On the plus side, movement toward a cleaner and greener future is increasing. Here are the top six trends shaping a more sustainable future for our planet.
Notable Sustainability Trends
Looking to the future, several corporate sustainability trends are likely to continue into 2022 based on current adoption rates. MRI examined a few of these continuing sustainable practices.?
1. Sustainable Finance
Businesses are increasingly making sustainable financial decisions or holding themselves accountable when they fail to meet green standards. The Indonesian government has implemented the development of a system of financial institutions that are environmentally friendly as mandated in Law Number 32 of 2009 concerning the protection and management of the environment. And Regulation of Financial Services Authority No. 51/POJK.03/2017, regarding sustainable finance is being applied to financial service institutions, issuers, and publicly listed companies.
In 2020, Visa introduced a $500 million green bond to promote environmental sustainability and a sustainable payments ecosystem. Tesla recently cited ecological concerns as the reason it backed away from accepting Bitcoin payments.
2. Renewable Energy
The price of electricity from renewable sources has plummeted over the last decade. As it is currently one of the cheapest energy options today, MRI believes the widespread adoption of renewable energy will continue. This is mandated by the Indonesian government through the Draft Regulation of the Minister of Energy and Mineral Resources No. 12 of 2017 concerning the Utilization of Renewable Energy Sources for the Provision of Electricity.
For example, technology companies such as, Apple, Intel, Google, and Microsoft all rely heavily on renewable energy, citing price and price predictability as reasons to switch. Your business can also take advantage of the cost savings that come with clean energy for better business efficiency and a greener future.
3. Give-Back Programs (CSR)
This program, where businesses donate portions of their profits to charities, relief efforts, and other good causes, is commonly called Corporate Social Responsibility (CSR). The popularity of this approach continues to grow, and if you implement a similar program, your business could attract new consumers who are looking to give back through their purchases.
4. Sustainable Food Products
Food production, packaging, shipping, and waste are all undergoing a sustainability revolution. For example, seaweed, cornstarch, or mushroom-derived products are all replacing plastic packaging. In a bid to reduce food waste, manufacturers are innovating the use of surplus or leftover ingredients to create or supply new products. If your business deals with quantities of food or extensive shipping and packaging operations, you can select sustainable options that help your bottom line and also help preserve our natural resources.
5. Innovative Partnerships
When sustainability goals intersect, businesses can form partnerships that multiply for effectiveness and efficiency. Frameworks such as the Partnership Assurance Model (PAM) are also coming to the fore, which assists regions in creating cross-sector partnerships to increase sustainability as a whole rather than as individual businesses. Your business can use environmental initiatives to share resources, reduce waste, and encourage cooperation that will lead to economic growth.
6. Net-Zero Emissions
Setting a net-zero emissions goal is increasingly common for corporations. Businesses now track, reduce, eliminate, or otherwise offset all carbon emissions they are responsible for creating. Hundreds of businesses have made net-zero emission pledges, such as Dell, BP, Walmart, and General Motors. If your business can implement the infrastructure that allows you to reach net-zero emissions, not only will you contribute to a reduction in harmful C02, but it will attract environmentally-conscious investors and customers who want to shop with like-minded companies.