Sustainable Business Trends in 2024 and Beyond
If you know Fibrenew, you know our business model puts the Earth’s well-being front and center. Contributing to the circular economy, utilizing renewable energy sources, and reducing carbon emissions are all strategies we rep to avert the climate crisis for future generations.
The good news is that eco-friendliness and climate action continue to trend—so the path to a sustainable future is something that can be achieved once urgent action is collectively taken.
Let’s take a look at some of the major trends in global business that keep us optimistic for the future.
*Data taken from sources including Deloitte, Accenture, Forbes, and others included in-line.
Business adoption of sustainability practices
- Many companies (46%) require their supply chain and business partners to meet specific sustainability criteria. Additionally, 44% of businesses are updating or relocating their facilities to be more resistant to climate impacts.
- There’s a strong trend towards increasing investments in sustainability, with 80% of companies worldwide planning to increase their sustainability investments.
- 37% of companies are linking their senior leaders’ compensation to environmental sustainability performance, signaling the integration of sustainability into core business strategies.
Environmental and economic impacts
- By 2030, business-related greenhouse gas emissions could be reduced by 3.7 billion metric tons of CO2 equivalent annually, aligning with the Paris Agreement targets.
- The global green technology and sustainable development market is expected to grow significantly, from $11.2 billion in 2020 to $36.6 billion by 2025.
Consumer Demand for Sustainability
- 88% of consumers express more loyalty to companies that support social or environmental issues.
- A significant shift towards sustainability is evident among consumers, with 85% reporting shifts towards more sustainable behaviors over the past five years, and 81% planning to buy more environmentally-friendly products in the coming years.
Regulatory Trends and Corporate Reporting
- In Europe, the Corporate Sustainability Reporting Directive (CSRD) requires EU and non-EU companies active in the EU to file annual sustainability reports from January 1, 2024. This marks a significant move towards transparency and accountability in corporate sustainability efforts.
- The rise in mandatory disclosures and increased scrutiny of greenwashing are pushing companies to provide a more transparent and complete vision of their sustainability methods and results.
Emerging Trends in Sustainability
- Climate-positive technology, which aims not just to reduce but to reverse environmental damage, is emerging as a promising area of innovation.
- The boom in sustainability jobs reflects the increasing integration of sustainable practices across various corporate roles and functions.
- Artificial Intelligence (AI) is becoming a critical tool for addressing sustainability challenges, offering capabilities to optimize processes, manage climate-related risks, and innovate sustainable products and services.
Fibrenew is an OG green franchise
Since 1987, we’ve built Fibrenew on the back of an all-encompassing sustainability agenda.
Our philosophy is to extend the lifecycle of incredible leather, vinyl, plastic, and upholstery products, avoiding the need for them to hit the landfills, and satisfying our customers’ sentimentality at the same time.
We are proud to say we are fundamentally sustainable, not just as a way to try to make us look better, but because it’s what we actually believe in—no BS.
If you’re on board with protecting our Earth and want to make a great living doing so—get your free copy of the Franchise Information Report today and let’s start the conversation!
Sustainable Business Urgency FAQ
Why is it crucial for businesses to adopt sustainability initiatives now? Businesses play a significant role in shaping the future of our planet. With environmental concerns escalating, adopting sustainability initiatives is essential to mitigate climate change, preserve natural resources, and ensure a viable future for generations to come. What are the primary drivers behind the urgency for businesses to prioritize sustainability? Several factors contribute to this urgency, including escalating climate change impacts, dwindling natural resources, regulatory pressures, evolving consumer preferences, and increasing stakeholder demands for corporate responsibility. How does adopting sustainability initiatives benefit businesses? Implementing sustainability initiatives can lead to various benefits, such as cost savings through resource efficiency, enhanced brand reputation and trust among consumers, reduced operational risks, access to new markets and opportunities, increased employee engagement and retention, and long-term resilience in a changing global landscape. Can businesses afford to prioritize sustainability, especially during economic downturns? Yes, prioritizing sustainability can actually help businesses weather economic downturns more effectively. Cost-saving measures from energy efficiency, waste reduction, and sustainable sourcing can improve financial resilience. Additionally, meeting sustainability goals can attract socially conscious investors and consumers, further bolstering the company’s bottom line. How can small and medium-sized enterprises (SMEs) benefit from adopting sustainability initiatives? SMEs can benefit from sustainability initiatives by enhancing operational efficiency, reducing waste, improving competitiveness, and accessing new markets. Moreover, embracing sustainability can foster innovation and help SMEs build stronger relationships with customers, suppliers, and communities. Are there any risks associated with not prioritizing sustainability for businesses? Yes, failing to address sustainability can pose significant risks to businesses, including reputational damage from environmental controversies, regulatory fines and penalties for non-compliance, increased operational costs due to resource scarcity, loss of market share to more sustainable competitors, and heightened investor scrutiny. How can businesses begin their journey towards sustainability? Businesses can start by conducting a comprehensive sustainability assessment to identify areas for improvement and set clear, measurable goals. They can then implement strategies such as adopting renewable energy, reducing waste, optimizing supply chains, promoting eco-friendly products, and engaging stakeholders to drive meaningful change. Is there a global framework or standard for businesses to follow in implementing sustainability initiatives? Yes, several frameworks and standards exist, such as the United Nations Sustainable Development Goals (SDGs), the Global Reporting Initiative (GRI), the Carbon Disclosure Project (CDP), and ISO 14001 for environmental management systems. These frameworks provide guidance and best practices for businesses to integrate sustainability into their operations effectively. How can businesses ensure the long-term success and impact of their sustainability initiatives? Businesses should prioritize transparency and accountability by regularly measuring, monitoring, and reporting on their sustainability performance. They should also foster a culture of sustainability throughout the organization, engage with stakeholders, and continuously innovate to stay ahead of evolving environmental and social challenges. What role do consumers and investors play in driving businesses towards sustainability? Consumers and investors wield significant influence in shaping corporate behavior. As awareness of environmental and social issues grows, consumers are increasingly favoring sustainable products and companies that demonstrate a commitment to responsible practices. Similarly, investors are incorporating environmental, social, and governance (ESG) factors into their investment decisions, incentivizing businesses to prioritize sustainability for long-term value creation.
