And this trend is only expected to continue in the coming years.
In 2023, we can expect to see even more green businesses popping up, as people continue to seek out sustainable alternatives.
Here are the top three trends we will see in business in 2023:
1. Sustainable Finance
More and more businesses are beginning to realise the importance of sustainable finance, which is investing in environmentally-friendly projects that will have a positive impact on the planet.
Sustainable finance is the process of allocating capital to investments that generate positive environmental or social outcomes, in addition to financial returns. This type of investing takes into account environmental, social, and governance (ESG) factors when making decisions.
Sustainable finance has grown in popularity in recent years as investors have become more aware of the need for responsible investment practices. In 2023, we can expect to see even more businesses incorporating sustainable finance into their operations.
Sustainable finance is not only good for the environment; it is also good for business, as it can help businesses save money in the long run.
2. Ethical Supply Chains
In 2023, we can expect to see more businesses paying attention to their supply chains and ensuring that they are ethical.
An ethical supply chain is a system in which businesses take into account the social and environmental impact of their supply chain. This includes things like working conditions, child labor, human rights abuses, and environmental degradation.
As part of shifting to ethical supply chains, businesses are taking turns to sustainable packaging in their supply chain process. Sustainable packaging is packaging that is designed to reduce the environmental impact of packaging waste. A recent report from Drapers reveals that UK consumers are now demanding sustainable packaging at a higher rate than ever before. Consumers are 64% more likely to make a purchase from retailers that offer sustainable packaging options.
Many businesses are now beginning to realise that their supply chains have a direct impact on the environment and the people involved in them. As a result, they are starting to take steps to improve their supply chains and make them more sustainable.
The ethical supply chain practice will also include reducing the carbon footprint of products and ensuring that they are made from sustainable materials.
3. Sustainability Reporting
Sustainability reporting is the process of measuring, disclosing, and being accountable for an organisation’s environmental and social performance.
Sustainability reporting helps businesses to track their progress on sustainability issues and makes them more accountable to their stakeholders. In 2023, we can expect to see even more businesses adopt sustainability reporting as part of their operations.
Some people tend to buy goods and services from businesses that are sustainable and have a good environmental and social record. Therefore, by being transparent about their sustainability performance, businesses can attract more customers and build trust with their stakeholders.
Businesses are on a track to measure and report their sustainability practices including Sustainable Development Goals. Sustainability reporting is a key factor in driving businesses to adopt sustainable practices.
Sustainability reporting is not only good for the environment; it is also good for business. It helps businesses to track their progress on sustainability issues and makes them more accountable to their stakeholders.
The above three trends are just some of the many green business trends that we can expect to see in 2023. As the public becomes more conscious of the need for sustainability, businesses will have to adapt in order to stay relevant and appeal to customers. Those that don’t will likely be left behind.
This blog was produced in collaboration with Hugo Energy App.