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Sustainability trends: 5 issues to watch in 2024

February 7, 2024
in Blockchain
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In 2024, sustainability is becoming increasingly important. The tracking and reduction of emissions, environmental impact, and contributions to climate change are now the norm, rather than rare or optional. Sustainability is now seen as a global imperative by businesses, governments, and individuals. Advanced technologies, stricter reporting standards, and stronger support from stakeholders are driving momentum for eco-friendly initiatives and the incentives that promote them. Here’s what to expect:

1. Net zero: The race continues – Achieving net-zero emissions, where human-caused greenhouse gas emissions are balanced by removing an equivalent amount from the atmosphere, has become a global focus. Many countries aim to reach net zero by 2050, aligning with the goals of the Paris Agreement. Businesses across sectors are setting ambitious sustainability goals, investing in renewable energy sources, and developing innovative solutions to reduce their carbon footprint. These efforts are driven by stakeholder expectations, regulatory requirements, and the recognition that sustainable practices can improve profitability.

2. Clean energy: Transitioning to renewable energy sources is central to sustainability strategies and net zero initiatives. Many countries are increasing their use of clean energy, such as solar, wind, and geothermal power, to reduce their carbon footprint. Companies are investing in renewable energy projects and implementing energy-efficient technologies and practices. These efforts align with broader corporate sustainability initiatives and can lead to significant cost savings and improved environmental performance.

3. Sustainable supply chains: Businesses are making their supply chain operations more sustainable in response to increasing consumer demand for sustainable products and heightened awareness of the environmental impact of production and shipping. This includes using eco-friendly packaging and materials, reducing waste, and ensuring fair labor practices and safe work environments. Companies are also addressing Scope 3 carbon emissions, which are emitted by other operators in their value chain.

4. Sustainability reporting: The year 2024 is a significant year for sustainability reporting. The European Union’s Corporate Sustainability Reporting Directive (CSRD) came into effect in January, requiring companies to annually report on their environmental and social impact. California also has new mandatory reporting rules taking effect in 2024, and other countries are implementing their own non-financial disclosure requirements. Investors, regulators, and stakeholders are increasingly demanding climate-related risk disclosure. Reporting is essential for corporate social responsibility initiatives and helps avoid misleading claims about sustainability.

5. Circular economy: The circular economy model, which aims to minimize waste and maximize resource use, is gaining momentum. Businesses are redesigning products to be more durable, reusable, or recyclable and reducing waste throughout the product life cycle. Retailers, especially in the fashion industry, are embracing circular business models through rental and resale programs and repair services. Other businesses are extending product life or implementing recycling and refurbishment plans.

6. Biodiversity: Biodiversity loss is a significant threat to the planet’s future. Efforts to preserve biodiversity and natural resources are gaining momentum globally. Governments, businesses, and non-profit organizations are establishing protected areas, restoring ecosystems, and promoting sustainable agriculture and forestry practices. The concept of “nature positive” aims to stop, avoid, and reverse environmental destruction, with the goal of having more nature by 2030 than today.

7. Sustainable technology: Advanced technologies like artificial intelligence (AI) and machine learning (ML) are driving sustainability efforts. AI can optimize energy consumption, reduce emissions, and support decision-making processes. Industry 4.0, which integrates IoT, cloud computing, and AI, enables increased automation, predictive maintenance, and process efficiencies that reduce emissions and costs. Software solutions help companies navigate complex reporting requirements and streamline data collection, incident reporting, and risk assessment.

By understanding these sustainability trends, organizations can better navigate the path to a more sustainable future.



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