When a topic is scrutinized in every aspect of its elements then you should know that it’s become a mainstream topic and gaining the attention of several stakeholders including the regulators, the investors, the employees, and the customers.
And to be ahead of your peers whether they are your competitors, your fellow Sustainability or Communications directors, you need to keep a close eye on the emerging trends for 2023.
I have read several reports on the trends but the one written by MSCI grabbed my attention.
Here are my top 3 Trends to watch out for:
1) Smart governance for real world impact on emissions
A recent study found that U.K.-listed companies with better governance practices tended to achieve higher carbon-emissions reduction compared to historic levels and to industry peers.
Boards who have members with climate experience will help firms address climate transition risk and reduce real world emissions.
Boards that include climate savvy members are better able to build support for emissions targets compared to those that do not.
2) Younger Board Members in emerging markets are replacing the older ones in developed markets
The emerging market is hiring much younger Board members than their counterpart in the developed market. This means:
That companies in emerging markets have an edge when harnessing new technologies and pursuing business innovation:
Younger directors may enhance a board’s generational diversity and help companies chart a path forward in an increasingly complex and technology-dependent business environment.
Boards and their nomination committees will require strong onboarding programs to maximize the contributions of younger directors who are likely to bring fewer years of professional experience and who may be less familiar with the nuances of board work.
3)The global digital landscape will be altered with the new ESG Regulations
The digital landscape may be seeing its next regulatory realignment, with the
passing in 2022 of the EU’s Digital Markets Act (DMA) and Digital Services Act (DSA) Which takes effect in 2024.
The DSA specifically targets big tech companies where they will be forced to open their walled-garden ecosystems (platforms that limit users’ access to competing services), facilitate competitive practices and ensure transparency in their advertising services. The DSA has a narrower focus: to manage disinformation and illegal content on consumer-facing platforms.
This is crucial for you to know if you are part of the communication team