Global warming has started to severely impact the climate of the countries in the world. The urgency to control and limit the impact on the climate has led world leaders to take actions towards embracing sustainability. During the recently conducted climate summit in Glasgow, the governments reaffirmed their commitments towards the climate by setting net-zero goals. In the same conference, India made a commitment to go net-zero by 2070.
In light of this development, 2022 will be a defining year for climate action and sustainable development. Following are some of the sustainability trends to watch out for in 2022.
1. Competitive Sustainability
Consumers are more mindful of their choices. So far, sustainability was an additional armour that aided companies in building their goodwill. However, with its rising popularity, the companies will be more competitive towards sustainability and reduce carbon emissions to retain their customers and encourage brand loyalty.
2. Affordable sustainability
With rising innovation and competition, sustainability will be more affordable in the upcoming year. The economy of scale has already allowed for renewable energy to be more affordable. This will also be replicable for environmental sustainability. Not only will this play a huge role in the reduction of carbon emissions, but it will also work towards creating sustainability as a norm rather than a luxury.
3. Data centrism
The data will be the basis of decision making in the upcoming year, as it has always been. With fierce competition among companies towards sustainability, the focus on data analytics will be very high. The ESG disclosures, their analysis and implications will play a major role in the investment choices of people. The responsibility of the company will go much beyond the shareholders to stakeholders.
According to a new study, about 70% of people are more aware of climate issues now than before the COVID-19 pandemic, and 40% plan to adopt more sustainable behaviours. This trend means that customers, investors, and job-seekers are looking more critically at a businesses’ sustainability efforts before interacting with them.
4. Rise in Demand for Carbon Offsetting
Carbon offsetting is about the replacement or reduction of carbon emissions. Usually, high-emission companies fund projects that either prevent the emission of greenhouse gases (GHGs) or remove GHGs. These projects can range from planting trees to deploying technology to capture carbon emissions.
With rising need for development, especially after the economic damage caused due to the pandemic, the high emitting companies will expand further and in turn will be pressured to tap into the carbon offset market to make up for the increased emissions. The low emitters will also take advantage of this to expand more and/or work towards reducing the emission of GHGs.
5. Increased demand for Green Products
The younger population is more concerned about the environmental challenges that threaten to become bigger with each day. Add to that the future generation and the two will together make up a major share of the eco-conscious population. This will create an increased demand for green products in all the sectors – from food to fashion to lifestyle.