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Socio-economic challenges and climate problems can interfere with ecological, communal, legal, and financial harmony. So, investors recognize the necessity for embracing ESG strategies across portfolio management and stock screening. This post will explore the top ESG trends for 2023 that businesses, fund managers, and regulators must track. 

What Is ESG? 

ESG means statistical analysis of a company’s environmental, social, and governance compliance level before investors acquire the related stocks and securities. It often helps investors to assess a company’s contribution to humanitarian and sustainable development causes. Some ESG data providers augment compliance auditing scope through automated and scalable technologies. 

Today, ESG reports let fund managers, financial advisors, government officials, institutions, and business leaders benchmark and improve a company’s sustainability compliance. The underlying frameworks, like the global reporting initiative (GRI), often leverage globally recognized criteria. 

However, the computing languages, statistical methods, and reporting formats remarkably vary from consultant to consultant. For example, some ESG scoring

, and rank comparison databases use interactive graphical user interfaces to streamline company screening. Others generate detail-rich files you can import into another data analysis and visualization platform. 

What Are the Top ESG Trends for 2023 That Stakeholders Must Know? 

1| Self-Regulations for Ethical Supply Chains 

The interest in future-proof ethical supply chains will keep increasing in 2023. Companies must ensure their suppliers avoid human rights abuses, environmental harm, and other unethical practices. Therefore, brands rely on ESG services for regular compliance inspection of suppliers and contractors. 

Sustainability and impact investors expect the following from a modern ethical enterprise. 

  1. The organization and its suppliers must implement appropriate policies and codes of conduct. 

  1. A firm must train its suppliers to foster a culture of socially and environmentally responsible business operations if required. 

  1. There must be prompt disciplinary action should any supplier exhibit non-compliance. 

2| Developing a Circular Economy Model 

The circular economy belongs to the top trends for 2023 that ESG investors must track. Since the linear model of “use and throw” contributes to waste management and pollution problems, the production strategies in leading corporations have integrated repair, reuse, and recycle principles. 

Some activities common to all circularity-first business models include: 

  1. Designing products with a broader perspective on service lifecycle, 

  1. Enhancing data-led maintenance schedules to prolong a product’s actual durability, 

  1. Investing in projects aimed at recycling byproducts and waste, 

  1. Building supplier and investor relations to ensure everyone understands and embraces circular models. 

3| Water Consumption Optimization 

Technologies that assist factories in reducing their reliance on water resources have gained prominence. Significant water volume evaporates each year during transportation from the primary source to the production site due to an improperly designed distribution system. 

Meanwhile, human activities pollute multiple water bodies like rivers, lakes, underground water tables, and artificial reservoirs. Therefore, environmentally conscious investors and regulators demand corporations utilize water more efficiently. 

Accordingly, established organizations, as well as venture-backed startups, explore projects as illustrated below. 

  1. Using alternative means to flush toilets, clean equipment, and manufacture goods to mitigate high water consumption risks, 

  1. Treating industrial effluent and reusing it whenever feasible, 

  1. Erecting or upgrading water distribution systems to reduce evaporation and leakage losses, 

  1. To create rainwater harvesting facilities across residential, commercial, and industrial complexes. 

Conclusion 

Textiles, paper, fashion, and mining industries consume a lot of water, while construction, transportation, and petroleum industries harm natural ecosystems. If unethical business practices remain unaddressed, future generations will have weaker bodies and a shortage of life-essential resources. 

But how can investors, corporate leaders, and regulators combat today’s sustainability challenges? The top ESG trends of 2023 present opportunities that can aid humans in reducing the harm they cause to the socio-economic equilibrium and nature. 

With the help of enterprise ESG assessment databases and improvement insights, the stakeholders can reconceptualize business activities. 

Doing so promises a better future where fewer individuals suffer from skin and lung cancer. You must ensure no children will lose a limb or life due to the stampede near water tankers and no microplastics can damage the animals’ and birds’ reproduction systems. 


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Google certified Digital Marketing Strategist with 6+ years of experience in digital marketing. Started my career as an SEO executive and slowly moved into mainstream digital marketing. Have worked in a digital marketing agency with the multiple USA, UK and Canada based clients. Also, worked with Information Technology and services industry.

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