A new year means new priorities and trends for businesses.

In 2022, sustainability held importance in a turbulent year, with COP27 and COP15 introducing new global sustainability frameworks and the EU adopting the Corporate Sustainability Reporting Directive (CSRD), which will change the future of business in the months and years to come.

As an ever-evolving space, it can be hard to keep up with what’s happening in sustainability.

Wondering what lies ahead in 2023? Let’s have a quick look at 5 emerging sustainability trends that you may want to keep an eye on throughout the year.

Net Zero, Scope 3 and Supply Chain Engagement

As the race to net zero continues, companies have a good hold on scope 1 and scope 2 emissions, that is those directly tied to business activity, but are struggling with scope 3.

Scope 3 emissions are indirect and come from upstream or downstream in your value chain because of supplier, subcontractor, or consumer activity.

As more companies start to address the challenge, supply chain engagement and collaboration will become a key part of the puzzle.

In 2023, expect companies to ask for your sustainability or ESG credentials before they agree to work with you. As businesses come under pressure from contractual and legislative requirements, they must ensure that their supply chains are responsible and work toward reduction in scope 3.

Luckily at SustainIQ, our upcoming Supply Chain Portal feature due for release this year will make it simple to access environmental data from your entire supply chain, making scope 3 measurement and supply chain engagement that bit easier.

Greenwashing and green marketing clamp down

We’ve recently written a blog on greenwashing, and how you can mitigate the risk and even make it an opportunity for your business.

In 2023, more companies will face financial repercussions as a result of crossing the fine line between green marketing and greenwashing.

Moreover, legislation such as the Corporate Sustainability Reporting Directive (CSRD) in the EU will make greenwashing inexistent in the EU in years to come. The legislation will require businesses to report and disclose their sustainability performance publicly, and so transparency and accuracy of data will be paramount in the years ahead.

In the UK, the Competition and Markets Authority (CMA) have called out the government to add more “legal teeth” to the implementation of their Green Claims Code, ensuring companies must comply to mitigate the presence of greenwashing.

By the end of 2023, the risk, danger, and potential cost of greenwashing will be much greater. Having data on hand to mitigate that risk will be essential to protecting your business.

Embodied carbon and growth of technology in construction

Construction currently is accountable for 39% of the worlds’ global emissions - 28% from operational carbon and the remaining 11% from materials and construction. As construction companies get a grasp on operational carbon, the need to address embodied carbon challenges will rise.

With 61% of construction leaders now reporting increases in demand for sustainable construction, it is evident contractors are facing greater client contractual requirements than ever to reduce environmental impact.

Expect greater investment in construction technology such as Building Information Modelling (BIM) software, enabling companies to better navigate what materials they are buying and identify opportunities to reduce embodied carbon.

SustainIQ will be a game-changing addition to BIM systems with our Embodied Carbon Calculator in 2023, which will allow companies to pull and push data from BIM to better understand their levels of embodied carbon.

Contractors will be able to forecast their embodied carbon in design stages, determine what was used in the operational build and easily cross-compare to see where things went wrong (or right).

This addition will make SustainIQ the only market offering that empowers contractors with complete operational carbon, embodied carbon, economic impact, and social value reporting on one offering.

Energy crisis, renewables, and nuclear energy

In 2023, the energy crisis which has driven the cost of fossil fuels up globally will continue to evolve.

In the UK in Q3 2022, electricity produced through renewable energy increased 18%, with nuclear energy increasing by 2.4%. At the same time, fossil fuel consumption also increased by 16% year-on-year due to UK need for energy.

Across the UK, investment in renewable infrastructure is wide-reaching, with wind power and biomass plants being completed across the country. Moreover, the government recently announced £50m funding for nuclear projects, with an ambition to generate 25% of the country’s energy from nuclear sources by 2050.

Expect to see more investment in renewable infrastructure, and a shift away from fossil fuels as the energy crisis expediates the energy transition.

Global Biodiversity Framework, Biodiversity Reporting and the TNFD

At COP15 in 2022, the Global Biodiversity Framework (GBF) was adopted by the United Nations Environment Programme (UNEP). The landmark framework places biodiversity on a new level of importance for governments and businesses globally.

By September 2023, the newly form Task-Force on Nature-Related Financial Disclosures (TFND) will be proposing its final recommendations. Similar to the existing Task-Force on Climate-Related Financial Disclosures (TCFD), this new group are currently discussing the 30% restoration goal by 2030, and what actions will be needed to achieve that.

Most notably, what will be a key challenge here is the performance data measurement of biodiversity initiatives. SustainIQ now provides users with capability to report on net biodiversity gain company-wide, allowing you interrogate biodiversity performance in real-time.

By the end of 2023, biodiversity will become more regulated, with greater expectations placed on organisations to do more to achieve the goals of the GBF.

Getting your business ready

Behind all these trends, one thing is consistent. The need for sustainability performance data to either protect your business from non-compliance, or perhaps improve energy efficiencies to reduce costs.

Sustainability in 2023 will change the future of business as we know it, and the momentum isn’t slowing – it’s just getting started.

If you’re unsure of how to prepare your business, or you’re worried about falling behind, contact us today.

You can also download our free e-book, 6 Steps to Getting Started with Sustainability & ESG Reporting here, which will provide a quick framework to get the ball rolling.