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Future of Sustainability

TrendRadar: Future of Sustainability provides a systematic overview of the most relevant sustainability trends.

Why we created the TrendRadar: Future of Sustainability

 


Sustainability has become a crucial focus for organisations across all industries. As the world moves towards a more sustainable future, companies are progressively adopting practices that are socially and environmentally friendly. Consumers are becoming increasingly conscious of their impact on the environment both through their own actions and purchasing decisions, and are demanding more sustainable products and services.

Understanding and being up-to-date on the relevant trends helps companies maintain a competitive edge, whilst mitigating the risk of falling behind. Most importantly, it enables proactive identification of business and market opportunities, the ability to adapt strategies and business models accordingly thereby resulting in business resilience and commercial success.

Discover the TrendRadar: Future of Sustainability below by clicking on each of the coloured circles that represent a (macro) trend:

Sustainable Tech & Data​

In response to the need for a more sustainable built environment, eco-friendly construction is becoming more prevalent. Eco-friendly buildings aim to reduce the use of natural resources, minimise emissions and waste, and even have a positive impact on the environment. Such buildings are also designed to promote occupant well-being through improved ventilation, insulation, and natural lighting – leading to improved health, productivity, and overall quality of life. In addition, cities are also increasingly being built with sustainability and eco-friendliness in mind. One example of this would be bicycle-friendly or car-free infrastructure.

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By collecting and analysing data on energy use, waste management, and resource consumption, smart data algorithms can provide insights into how to optimise and reduce companies’ impact on the environment. This data can be used to design more efficient supply chains, track carbon footprints, and identify areas for improvement in energy and resource use. Furthermore, the use of smart data can lead to more accurate climate forecasting and enable the creation of more effective sustainability policies. Smart data can be a powerful tool in the fight against climate change and the accelerating sustainable practices.

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Advances in material technology have played a crucial role in human progress, but they have also contributed to climate change due to high resource consumption. The challenge now is to find sustainable alternatives to traditional materials. The development of new materials is underway, using sources such as biodegradable plastics made from plant materials, bamboo fibres, and recycled waste. These new materials offer exciting possibilities for innovative products and functions that will be both eco-friendly and highly functional. Material technology will lead to the development of products and functions that contribute to a more sustainable future.

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With the rising concern over climate change and the role of personal consumption, there is a growing need for technologies that promote a better ecological balance. Clean tech has emerged as a crucial component of this transition towards more sustainable technologies. Clean tech values the environmental performance of new technologies, in addition to their functionality. This shift in perspective towards eco-friendliness is essential to achieving a more sustainable future. By prioritising environmental impact in the development of new technologies, clean tech is playing a significant role in shaping a greener world.

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The integration of sustainable technologies in agriculture will be critical to ensuring a secure and sustainable food supply. As urbanisation advances, agriculture must adapt to the limited space available in cities. By using technologies such as aquaponics and vertical farming, a significant amount of food can be produced efficiently in small spaces. In addition, traditional field cultivation is becoming more automated and optimised with the help of geospatial intelligence which uses tools like drones, satellite imagery and remote sensing. These advances not only improve efficiency but also have the potential to reduce negative environmental impacts from agriculture.

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The increasing severity of climate change-related events such as storms, wildfires and droughts has led to a growing interest in the potential of artificial intelligence (AI) to predict and mitigate their impacts. Governments, investors and tech firms are exploring machine learning systems that can identify patterns in data sets and provide real-time predictions and recommendations. AI can help anticipate potential climate-related disasters that potentially disrupt global supply chains. However, there also many social, environmental, and governance-related challenges associated with AI.

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Circularity​

While many companies may not currently consider biodiversity as much of an issue, it is essential to acknowledge that the loss of ecological diversity and climate change are two closely connected environmental disasters. The health of ecosystems can make a lasting contribution to climate protection. Regeneration of ecosystems is also crucial to mitigating the impacts of climate change and restoring balance to the environment. By recognising the value of biodiversity and regeneration, companies can not only protect the environment but also have a positive impact on the planet for future generations.

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Consumers are becoming increasingly conscious of the impact their consumption and lifestyle have on the environment. This has led to a rise in demand for sustainable products and services. Consumers are now more likely to research the sustainability practices of companies before making a purchase and are willing to pay more for products that are environmentally and socially responsible. This shift in consumer behaviour is pushing companies to adopt more sustainable practices, to be more transparent, and to meet the demand for eco-friendly products and services.

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Systems thinking is a perspective that views the world as a set of interconnected and dynamic systems – for example, an ecosystem – with entities that work together in an overlapping and nested network. By thinking in systems, businesses can identify key levers to encourage the economy, society and other systems to work in a more sustainable way. In their operations, businesses can better understand the impact of their decisions on the environment and society and make more informed choices. Additionally, by taking a holistic view of the systems they operate in, businesses can identify opportunities to reduce waste, improve resource efficiency, and create value in new and innovative ways.

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The sharing economy has disrupted traditional business models by allowing anything that is not being used to be rented out. Sharing platforms enable a more efficient use of resources, as users can share products and services instead of owning them individually. This leads to a reduction in waste and a decrease in the production of new goods. Additionally, the sharing economy can encourage more sustainable transportation options, for example carpooling or bike-sharing. Sharing platforms often prioritise environmentally friendly practices, such as using electric or hybrid vehicles.

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Upcycling offers a fresh perspective on waste, turning it into a valuable resource. Instead of viewing waste as something to be disposed of, upcycling encourages people to use it as a source of economic opportunity to create new products. As natural resources dwindle and waste continues to grow, closing the loop between waste and resources becomes increasingly important. This not only benefits the planet, but also helps to preserve economic value and ensure that society has enough resources to sustain itself.

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The philosophy of avoiding or minimising waste has gained attention as a sustainable lifestyle choice. The aim is to send nothing to landfills, incinerators or the ocean. This is achieved through the implementation of a circular economy, which involves reusing and recycling materials, composting organic waste and reducing consumption of single-use items. A zero-waste lifestyle not only benefits the environment but also has the potential to save money by reducing the need for new purchases and waste disposal. The zero-waste approach encourages individuals to take responsibility for their waste and strive for a more sustainable lifestyle.

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In a prosumer economy, individuals are not only consumers but also producers of goods and services. By producing and sharing their own goods, prosumers reduce the demand for mass-produced products, which can have a positive environmental impact. The prosumer economy can also encourage local and community-based production, reducing the environmental impact of transportation and supporting the development of a more sustainable local economy. Overall, the prosumer economy has the potential to promote sustainability by empowering consumers to take an active role in the production and consumption.

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Decarbonisation​

An important step in the fight against climate change is to track, measure and optimise carbon emissions. By tracking carbon output across the entire value chain, containing upstream and downstream component transportation and manufacturing, it becomes possible to reduce the amount of emissions released into the environment. The process involves the use of technology that can track, simulate, analyse and monitor carbon emissions, enabling companies and individuals to make informed decisions about their energy use.

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Aiming to reduce environmental impact and to cut energy costs, companies are increasingly use renewable forms of energy. Many companies are investing in solar, wind and hydroelectric power systems to power their operations with clean, sustainable energy. In addition to the environmental benefits, using renewable energy can potentially enhance a company's brand image and reputation among environmentally conscious consumers. Further reducing their reliance on fossil fuels and transitioning to renewable energy is a challenge that many companies will face in the near future.

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As the world moves towards a post-fossil fuel era, alternative powertrain technologies are emerging as sustainable replacements for combustion engines. These include battery electric vehicles (BEVs), fuel cell electric vehicles (FCEVs) and various hybrids. While there is no one-size-fits-all solution, the adaptability of these technologies offers significant benefits to users. BEVs are currently ideal for urban areas, while FCEVs seem more suited for long distances, and many more alternatives are being explored. As a result, there will be a shift from a ‘one powertrain fits all’ approach to the use of the most appropriate powertrain for each situation.

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In recent years, there has been a rise in the development of products and services aimed at handling emissions. These solutions not only include technologies that capture and store emissions, but also services that offset emissions, such as those generated by air travel. However, emission offsetting is increasingly criticised as a questionable and inefficient approach to achieving net zero targets. Emissions trading seeks to reduce the overall amount of greenhouse gases produced by companies by allowing them to trade their emissions allowances with one another. This approach incentivises companies to reduce their own emissions and ultimately helps to mitigate the effects of climate change.

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Energy harvesting involves using untapped sources of energy that would otherwise go to waste, such as noise or heat. Companies are recognising the risks associated with relying on a limited number of energy sources, particularly considering political tensions and climate change concerns. This realisation, coupled with advances in alternative powertrains, are driving research and development efforts in the field of energy harvesting. As a result, there is a shift away from a few primary energy sources towards a more diversified and sustainable approach. For instance, annoying car noise could potentially be transformed into a valuable source of energy.

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Corporate Responsibility​​

As governments and societies increase their focus on sustainability, stakeholders are realising that only companies that are effectively pursuing sustainable practices have future value. For example, investors are participating more in political discussions and are exerting more influence on companies' actions, especially regarding sustainability. In the future, internal and external stakeholders will play a significant role in holding companies accountable for their sustainability objectives and actions.

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The value of ESG is becoming increasingly recognised as a framework for risk mitigation and a driver of financial success. It is a key performance indicator against which the C-Suite will be measured. The three dimensions of ESG (environmental, social and governance) are indicators of a company's resilience and the degree to which it is future-proof in the context of growing stakeholder demands for sustainability. This has led to increasing pressure on corporate governance to prioritise the E and S of ESG. Actions taken within the ESG framework have multiple benefits and can be seen as investments in the future of the company.

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Companies must be held accountable for their actions and commitments towards sustainability. This includes efforts by various private and public organisations to promote transparency, encourage independent verification, and establish clear standards and regulations to prevent misleading or false claims of environmental sustainability. In addition, consumers can play a role by educating themselves and scrutinising the sustainability claims made by companies. The fear of litigation has pushed several companies towards so-called greenhushing, which is when businesses choose to not communicate about their sustainability efforts.

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Different groups of people have varying needs in everyday life and at work. Over the last few years, diversity and inclusion have evolved from terms primarily associated with activism and academia to key features of attracting and retaining talent. Embracing differences in race, gender, sexuality, and other factors can lead to better decision-making, increased innovation and improved employee engagement. It has therefore become increasingly expected that organisations should intentionally foster inclusivity and diversity in their workplaces.

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Societal pressure has been forcing companies to be more transparent. With the rise of social media, users can share information about a company's processes and practices in real time, making accountability more critical than ever. Companies are responding by becoming more open and disclosing their processes, particularly regarding their material sourcing and production processes along the supply chain. In addition, demands for transparent wages, ethical working conditions, and greater diversity in the workplace are on the rise, and these are reshaping the world of work.

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Sustainable incentives encourage companies and individuals to make more sustainable choices. The rewards involved can be monetary or in the form of other services. Public institutions use these incentives to meet sustainability goals; private companies use them to recover materials and products for recycling, reuse or aftermarket needs. Sustainable incentive programme's dual impact of making a beneficial contribution and offering immediate rewards serves as a strong motivation for both employees and consumers. Organisations must consider the benefits as well as the costs of incentive programmes and balance both aspects as they make decisions which impact entire ecosystems.

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Salaries are a significant factor in a company's social impact, both positively and negatively. Fair and equal pay should encompass a range of factors, such as gender, geographical location, contract type, subsidiary status, diversity, and self-employment. In diverse workplaces with multidisciplinary teams, fair and equal pay are critical for attracting and retaining a diverse workforce. Additionally, the issue of old-age poverty has become increasingly pressing, with unequal pay having a significant impact. It is therefore essential for companies to consider fair and equal pay to promote social responsibility and avoid perpetuating poverty.

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In response to internal and external pressures to take a stand and voice their opinions, corporations are becoming increasingly vocal about geopolitical events, social movements and humanitarian crises. This trend is closely linked to a culture of protest, as both individual employees and companies as a whole feel compelled to speak out. Some of the ways in which this trend is manifested include social media activism and company regulations related to issues such as human rights and the environment. The Ukraine crisis has been a particularly noteworthy example where businesses have shown corporate activism.

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A growing number of countries and their governments worldwide are recognising the need for new income structures that go beyond traditional full-time employment. With the rise of the gig economy and the increasing prevalence of non-standard forms of work, such as temporary or contract work, there is a need to explore alternative ways of ensuring financial stability and security for individuals. The discussions around new income structures such as universal basic income are driven by a desire to address growing income inequality and the financial insecurity that many people face.

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How we created the TrendRadar: Future of Sustainability

 

The TrendRadar: Future of Sustainability is based on a screening of industry trends, which were assessed by sustainability experts, and the identified trends were subsequently categorised by their levels of urgency. Our trend screening was based on desk research, a trend database and interviews with sustainability experts, which led to the classification of four mega trends (overarching categories) and 27 macro trends (concrete manifestations).

In the assessment, Deloitte professionals and external sustainability experts evaluated the trends against two criteria: the impact on industry and the time until mainstream adoption. As a result, each trend falls into one of three categories:

Act

Trends have a high to very high impact on the industry. The date of mainstream adoption is expected in the near future (0 – 4 years) or has happened already. If companies have not yet reacted to these trends it is time to act.

Prepare

Trends have at least a medium impact on the industry and a medium timeframe of mainstream adoption (4 – 8 years) but are not high in both criteria, as is the case for Act trends. For these trends, companies should actively prepare today and install frameworks to be well set up for the near future.

Watch

Trends either have a very low to low impact on the industry or their mainstream adoption is not expected in the near future. Trends in this category should be on the watch list.

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