{"id":3859,"date":"2021-12-01T14:39:33","date_gmt":"2021-12-01T14:39:33","guid":{"rendered":"https:\/\/www.iese.edu\/standout\/?p=3859"},"modified":"2024-04-22T06:15:38","modified_gmt":"2024-04-22T06:15:38","slug":"business-trends-sustainability","status":"publish","type":"post","link":"https:\/\/www.iese.edu\/standout\/business-trends-sustainability\/","title":{"rendered":"Corporate sustainability into action: Business Trends 2024"},"content":{"rendered":"<div class=\"wpb-content-wrapper\"><p>[vc_row][vc_column]<div style=''  class=\"gem-quote gem-quote-style-default custom-color-blockqute-mark-added\" ><blockquote  ><strong>\u201cWe only have a few years left to achieve the ambitious UN sustainable development goals we set out to achieve by 2030. So it is urgent to accelerate our progress towards this objective. And corporations can do more and should do more.\u201d<\/strong><\/p>\n<p>&nbsp;<\/p>\n<p>IESE Prof. <a href=\"https:\/\/www.iese.edu\/faculty-research\/faculty\/fabrizio-ferraro\/\">Fabrizio Ferraro<\/a>.<\/blockquote><span style=color:#ff0000;  class=\"custom-color-blockqute-mark\">&#xe60c;<\/span><\/div><div class=\"clearboth\"><\/div><style>#thegem-divider-6a04f2420755a {margin-top: 35px !important;}<\/style><div id=\"thegem-divider-6a04f2420755a\" class=\"gem-divider  \" style=\"\" ><\/div>[vc_column_text css_animation=&#8221;bottom-to-top&#8221;]But what does \u201cmore\u201d mean for business leaders? IESE professors weigh in on the leading sustainability-related business trends for 2024. Here&#8217;s how corporate sustainibility works:[\/vc_column_text]<div class=\"clearboth\"><\/div><style>#thegem-divider-6a04f24207594 {margin-top: 35px !important;}<\/style><div id=\"thegem-divider-6a04f24207594\" class=\"gem-divider  \" style=\"\" ><\/div>[vc_column_text css_animation=&#8221;bottom-to-top&#8221;]<\/p>\n<h2>What is corporate sustainability? 10 Business Trends for a better word in 2024<\/h2>\n<p>Corporate sustainability can be defined as a set of strategies that a business can develop in order to reach an environmentally sustainable economic growth. Here&#8217;s how it can be done:<\/p>\n<h3><span class=\"subrat\">1.<\/span><strong> Get ready for growth.<\/strong><\/h3>\n<p>Economic growth is in itself one of the UN\u2019s Sustainable Development Goals. \u201c2024 is going to be a year of very strong growth for the global economy,\u201d says Prof. <a href=\"https:\/\/www.iese.edu\/faculty-research\/faculty\/nuria-mas\/\">N\u00faria Mas<\/a>, forecasting a global expansion of almost 5%, which would bring GDP back to pre-pandemic levels. Potential risks? The developing world (excluding China) will lag behind growth because of low vaccination rates, and continued disruptions to the global supply chain could throw economies off.<\/p>\n<h3><span class=\"subrat\">2.<\/span> <strong>Adopt a sustainable leadership mindset. <\/strong><\/h3>\n<p><a href=\"https:\/\/www.iese.edu\/faculty-research\/initiatives\/sustainable-leadership\/\">Sustainable leadership<\/a> demands that every leader \u201cthink about their role, not\u00a0only as a leader in a very limited space, but also\u00a0as a worldwide citizen with a longer-term\u00a0impact on society\u00a0and the planet,\u201d says Prof. <a href=\"https:\/\/www.iese.edu\/faculty-research\/faculty\/yih-teen-lee\/\">Yih-Teen Lee<\/a>. Lee breaks it down into <strong>four essential skills<\/strong>:<\/p>\n<ul>\n<li>Developing a <strong>vision<\/strong> for your company for the long term<\/li>\n<li>Cultivating a <strong>mindfulness<\/strong> in your decision-making beyond the short term<\/li>\n<li>Gathering the <strong>courage<\/strong> to stand up to stakeholders who may question change<\/li>\n<li>Building <strong>connections<\/strong> beyond your immediate sphere.<\/li>\n<\/ul>\n<p>[\/vc_column_text]<div class=\"clearboth\"><\/div><style>#thegem-divider-6a04f242075ba {margin-top: 35px !important;}<\/style><div id=\"thegem-divider-6a04f242075ba\" class=\"gem-divider  \" style=\"\" ><\/div>[vc_single_image image=&#8221;3866&#8243; img_size=&#8221;large&#8221; alignment=&#8221;center&#8221;]<div class=\"clearboth\"><\/div><style>#thegem-divider-6a04f242075db {margin-top: 35px !important;}<\/style><div id=\"thegem-divider-6a04f242075db\" class=\"gem-divider  \" style=\"\" ><\/div>[vc_column_text css_animation=&#8221;bottom-to-top&#8221;]<\/p>\n<h3><span class=\"subrat\">3.<\/span> <strong>Pinpoint what your business can do. <\/strong><\/h3>\n<p>There\u2019s no one-size-fits-all for sustainability. Every company needs to analyze who their customers are, who their stakeholders are, where they are doing business and what their regulatory framework is, and then think deeply about how to de-carbonize. \u201cEvery\u00a0company is at a different stage. Every\u00a0company is in a different\u00a0place,\u201d says Prof. <a href=\"https:\/\/www.iese.edu\/faculty-research\/faculty\/mike-rosenberg\/\">Mike Rosenberg<\/a>.[\/vc_column_text]<div class=\"clearboth\"><\/div><style>#thegem-divider-6a04f242075f8 {margin-top: 35px !important;}<\/style><div id=\"thegem-divider-6a04f242075f8\" class=\"gem-divider  \" style=\"\" ><\/div><div style=''  class=\"gem-quote gem-quote-style-default custom-color-blockqute-mark-added\" ><blockquote  ><strong>\u201cWhat\u2019s really important, in my view, is that companies do the math, and figure out what is the business case, how fast do they need to go, what is the right timing.\u201d<\/strong><\/p>\n<p>&nbsp;<\/p>\n<p>IESE Prof. Mike Rosenberg<\/blockquote><span style=color:#ff0000;  class=\"custom-color-blockqute-mark\">&#xe60c;<\/span><\/div><div class=\"clearboth\"><\/div><style>#thegem-divider-6a04f2420763c {margin-top: 35px !important;}<\/style><div id=\"thegem-divider-6a04f2420763c\" class=\"gem-divider  \" style=\"\" ><\/div>[vc_column_text css_animation=&#8221;bottom-to-top&#8221;]<\/p>\n<h3><span class=\"subrat\">4.<\/span> <strong>Set ambitious, science-based targets. <\/strong><\/h3>\n<p>It may feel easy to declare that your company will be net zero at some point in the distant future, but it\u2019s not really about that. Instead, it\u2019s about establishing realistic, science-based targets that are achievable. Those <strong>targets should be clearly and transparently communicated to all stakeholders<\/strong>, because consumers are demanding this from companies.<\/p>\n<h3><span class=\"subrat\">5.<\/span> <strong>Move from strategy to operations.<\/strong><\/h3>\n<p>At the same time, the strategic decision to reduce your company\u2019s carbon footprint must be translated into concrete, operational change. \u201cOperations is\u00a0what helps companies implement strategies in\u00a0their day-to-day actions,\u201d says Prof. <a href=\"https:\/\/www.iese.edu\/faculty-research\/faculty\/anna-saez-de-tejada\/\">Anna S\u00e1ez de Tejada Cuenca<\/a>.[\/vc_column_text]<div class=\"clearboth\"><\/div><style>#thegem-divider-6a04f24207669 {margin-top: 35px !important;}<\/style><div id=\"thegem-divider-6a04f24207669\" class=\"gem-divider  \" style=\"\" ><\/div>[vc_media_grid grid_id=&#8221;vc_gid:1697185567984-1e307ac2-7657-0&#8243; include=&#8221;3877,3875,3873&#8243;]<div class=\"clearboth\"><\/div><style>#thegem-divider-6a04f24207689 {margin-top: 35px !important;}<\/style><div id=\"thegem-divider-6a04f24207689\" class=\"gem-divider  \" style=\"\" ><\/div>[vc_column_text css_animation=&#8221;bottom-to-top&#8221;]<\/p>\n<h3><span class=\"subrat\">6.<\/span> <strong>Incorporate the circular economy.<\/strong><\/h3>\n<p>Not every company can be fully circular, but every company can look at ways to better manage waste, ensure their products are durable and reparable, evaluate whether there\u2019s a market for refurbished products, study whether they can implement a take-back or recycling program, etc. \u201c<strong>Companies\u00a0need to think how they&#8217;re going to\u00a0implement circular economy principles in\u00a0their day-to-day operations<\/strong>,\u201d says S\u00e1ez.<\/p>\n<h3><span class=\"subrat\">7.<\/span> <strong>Clean up your supply chain. <\/strong><\/h3>\n<p>Disruptions during 2021 and 2022 mean there are enormous doubts hanging over the global supply chain for 2024. But even beyond those, companies should continue to pay attention to their supply chains. The <strong>challenge<\/strong> is twofold:<\/p>\n<ul>\n<li>Companies must <strong>know<\/strong> exactly who their suppliers are \u2013 which sounds straightforward, but in complex global supply chains involving subcontractors this can be tricky.<\/li>\n<li>Companies should be ready to <strong>communicate<\/strong> to the public who their suppliers are. \u201cConsumers and the public increasingly are\u00a0holding companies accountable for what\u00a0happens in their entire supply chains,\u201d S\u00e1ez says.<\/li>\n<\/ul>\n<h3><span class=\"subrat\">8.<\/span> <strong>Invest in innovation.<\/strong><\/h3>\n<p>A lot of the technology required for a green transition is yet to be developed. Established companies can take the lead in investing in innovation and working with cutting-edge startups. \u201c<strong>A lot of the challenges will require new technologies, <\/strong>new\u00a0business models and new habits. We really need startups and corporations\u00a0to innovate to really actually make a difference,\u201d Ferraro says.[\/vc_column_text]<div class=\"clearboth\"><\/div><style>#thegem-divider-6a04f242076a3 {margin-top: 35px !important;}<\/style><div id=\"thegem-divider-6a04f242076a3\" class=\"gem-divider  \" style=\"\" ><\/div>[vc_media_grid grid_id=&#8221;vc_gid:1697185567986-43354eb9-0ad8-6&#8243; include=&#8221;3871,3879&#8243;]<div class=\"clearboth\"><\/div><style>#thegem-divider-6a04f242076bd {margin-top: 35px !important;}<\/style><div id=\"thegem-divider-6a04f242076bd\" class=\"gem-divider  \" style=\"\" ><\/div>[vc_column_text css_animation=&#8221;bottom-to-top&#8221;]<\/p>\n<h3><span class=\"subrat\">9.<\/span> <strong>Prepare for a commodities supercycle. <\/strong><\/h3>\n<p>The green transition may produce what\u2019s known as a commodities supercycle \u2013 a surge in demand for certain commodities of historic proportions, such seen during the industrialization of the U.S., or the post-war reconstruction of Europe. Companies should be prepared for this possibility. \u201cSupercycles\u00a0happen when there&#8217;s a very important\u00a0structural change in the demand for some types\u00a0of commodities. The\u00a0transformation towards green, more sustainable energy\u00a0might generate that,\u201d says Mas.<\/p>\n<h3><strong><span class=\"subrat\">10.<\/span> Make sure it\u2019s inclusive.\u00a0 <\/strong><\/h3>\n<p>One of the challenges of the transition is to make sure that it doesn\u2019t serve to accentuate existing inequalities. Because if many people are excluded from new models, the current groundswell of public support for sustainability will evaporate. <strong>\u201cIf we don&#8217;t\u00a0take into account the ones who are being left\u00a0behind, if we don&#8217;t consider the cost of the\u00a0transition together with the benefits, we will\u00a0see a bigger increase in resistance<\/strong>,\u201d Mas notes.<\/p>\n<p>&nbsp;<\/p>\n<p>In the end, companies and governments must remember that sustainability has to focus on bettering the lives of people.[\/vc_column_text]<div class=\"clearboth\"><\/div><style>#thegem-divider-6a04f242076d5 {margin-top: 35px !important;}<\/style><div id=\"thegem-divider-6a04f242076d5\" class=\"gem-divider  \" style=\"\" ><\/div>[vc_single_image image=&#8221;3884&#8243; img_size=&#8221;large&#8221; alignment=&#8221;center&#8221;]<div class=\"clearboth\"><\/div><style>#thegem-divider-6a04f242076ed {margin-top: 35px !important;}<\/style><div id=\"thegem-divider-6a04f242076ed\" class=\"gem-divider  \" style=\"\" ><\/div><div style=''  class=\"gem-quote gem-quote-style-default custom-color-blockqute-mark-added\" ><blockquote  ><strong>\u201cSustainability is not just about environmental challenges, it&#8217;s primarily\u00a0about\u00a0people. It&#8217;s primarily about society. Sustainability is the intersection of economics, society and\u00a0environment.\u201d<\/strong><\/p>\n<p>&nbsp;<\/p>\n<p>IESE Prof. <a href=\"https:\/\/www.iese.edu\/faculty-research\/faculty\/fabrizio-ferraro\/\">Fabrizio Ferraro<\/a>.<\/blockquote><span style=color:#ff0000;  class=\"custom-color-blockqute-mark\">&#xe60c;<\/span><\/div><div class=\"clearboth\"><\/div><style>#thegem-divider-6a04f2420771a {margin-top: 35px !important;}<\/style><div id=\"thegem-divider-6a04f2420771a\" class=\"gem-divider  \" style=\"\" ><\/div>[vc_column_text css_animation=&#8221;bottom-to-top&#8221;]Don\u2019t miss the video:[\/vc_column_text]<div class=\"clearboth\"><\/div><style>#thegem-divider-6a04f24207733 {margin-top: 35px !important;}<\/style><div id=\"thegem-divider-6a04f24207733\" class=\"gem-divider  \" style=\"\" ><\/div><div class=\"gem-youtube gem-wrapbox gem-wrapbox-style-no-style rounded-corners gem-wrapbox-position-below\" style=\"width: 100%;\"><div class=\"gem-wrapbox-inner gem-ratio-style\" style=\"padding-top: 56.25%\"><iframe class=\"gem-wrapbox-element img-responsive\" width=\"100%\" height=\"300\" allowfullscreen=\"allowfullscreen\" frameborder=\"0\" scrolling=\"no\" marginheight=\"0\" marginwidth=\"0\" src=\"\/\/www.youtube.com\/embed\/4FtEwRWSczA?rel=0&amp;wmode=opaque\"><\/iframe><\/div><\/div><div class=\"clearboth\"><\/div><style>#thegem-divider-6a04f242077b8 {margin-top: 35px !important;}<\/style><div id=\"thegem-divider-6a04f242077b8\" class=\"gem-divider  \" style=\"\" ><\/div>[\/vc_column][\/vc_row]<\/p>\n<\/div>","protected":false},"excerpt":{"rendered":"<p>[vc_row][vc_column][vc_column_text css_animation=&#8221;bottom-to-top&#8221;]But what does \u201cmore\u201d mean for business leaders? IESE professors weigh in on the leading sustainability-related business trends for&#8230;<\/p>\n","protected":false},"author":4,"featured_media":3861,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[107],"tags":[38,57],"class_list":{"0":"post-3859","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-general","8":"tag-general-management","9":"tag-skills"},"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.7 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Corporate sustainability into action: Business Trends 2024<\/title>\n<meta name=\"description\" content=\"Business trends in 2024 revolve around sustainability. From the circular economy to sustainable leadership, 2024 is the year for corporate sustainability.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.iese.edu\/standout\/business-trends-sustainability\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Corporate sustainability into action: Business Trends 2024\" \/>\n<meta property=\"og:description\" content=\"Business trends in 2024 revolve around sustainability. 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