2022 was a year filled with highs and lows in the sustainability space. Amongst several weather disasters, record-breaking heat waves and alarming new statistics, we’ve also seen progress on a number of fronts.
Looking ahead at 2023, we are full of hope. We can’t predict the future, but we can analyse trends and speculate where the sustainability industry might be headed. There are many reasons to believe that this year will be a big one for carbon tracking; from increasingly noticeable effects of climate change driving stricter policies, to emerging Net Zero strategies and more conscious consumerism, the world is urgently calling for more reliable data as well as insights on how to turn the knowledge into action.
Alexander Lempka, Co-Founder and CEO at Connect Earth said:
“In 2023, sustainability will be at the core of every business. With the emerging regulations requiring companies to disclose their sustainability-related targets and the increasing consumer awareness of climate change, transparency on sustainability matters will become the norm. We can expect to see an increase in the use of data to monitor, predict and act on reducing carbon emissions and optimising supply chains. This year, businesses will have the opportunity to prepare for the evolving reporting standards, and not only gain a competitive advantage and satisfy consumer and regulatory demand but also do good for the planet and the future of humanity.”
Hyper-transparency is becoming the norm
As consumers and businesses become increasingly concerned about the initiatives they support, the demand for transparency is escalating. More and more people want to know where their products come from, what the supply chain looks like and the impact of business operations on local communities and the environment. In parallel, companies want to make ‘green’ claims about their products and services, but can no longer do so without reliable data substantiating their claims. All of this is shifting the ways businesses operate; for those able to demonstrate their commitment to transparency and impact reporting with credible, viable data, 2023 is looking bright.
Governments introduce new restrictions
It’s not just the consumer mindset that’s going to change. The booming need for carbon tracking, also known as carbon footprint management, is equally a result of new restrictions introduced by governments. In December, it was announced that the European Union negotiators reached a deal on a new carbon taxation scheme – this law places CO2e duties on imports of iron and steel, cement, fertilisers, aluminium and electricity where importers will be required to purchase certificates that cover embedded emissions. This new carbon border adjustment mechanism (CBAM) is intended to level the playing field and prevent market disruptions caused by cheaper goods produced in countries with weaker environmental rules.
The CBAM is just a starting point. We’re expecting to see much more legislation around carbon emissions in the near future – environmental protection bills and carbon tax in various forms are on the horizon.
Net Zero commitments call for access to reliable carbon data
Carbon data is a critical component in the effort of achieving Net Zero emissions. Without access to reliable carbon tracking and data, it’s difficult to set accurate targets and measure progress. Carbon data allows policymakers and other stakeholders to understand the extent of a business’s emissions, quantify reduction strategies and outline targets.
For many companies that have set Net Zero 2030 or 2050 targets, this is the year to take serious action. In 2023, we’re expecting much greater emphasis from governments and businesses using reliable carbon data at the core of their monitoring, reporting and verifications. In addition, businesses need intermediate targets to spur short-term action which is impossible to pull off without accurate carbon tracking. Furthermore, we’ll see an emphasis on high-quality carbon data which will be crucial in obtaining the transparency levels necessary to back up claims and prevent greenwashing accusations.
It’s getting hot in here
If there’s one year to persuade climate change sceptics, 2023 might be it. Met Office’s Annual Global Temperature forecasts that 2023 will be one of the hottest years ever recorded. Already in the first month of this year, several countries have reported a historic winter “heatwave”, with ski resorts being forced to close. Not only will these global temperature increases affect wildlife and ecosystems but are also likely to shift public concerns and demands around climate action.
Not just for the eco-warriors
Last but not least, 2023 will be the year of stretching outside the ‘sustainability bubble’ by sharing the importance of carbon tracking with a wider audience. ESG initiatives will no longer be the cream on the cake to attract conscious consumers but instead a mainstream business practice.
Sustainability has passed niche status, and widespread collaborative action is the only way we’re going to be able to turn things around for the better.
At Connect Earth, we believe in a future where accurate carbon tracking and transparent data can bridge the gap between intent, knowledge and action. Learn more about our carbon tracking technologies and how they can drive conscious consumerism. Reach out if you think Connect Earth can help your business.
About Connect Earth:
Founded in 2021, Connect Earth is a London-based environmental data company that democratises easy access to sustainability data. With its carbon tracking API technology, Connect Earth is on a mission to empower consumers and SMEs to make sustainable choices and bridge the gap between intent, knowledge and action. Connect Earth supports financial institutions in offering their customers transparent insight into the climate impact of their spending.