Less than 30% of people in Argentina have heard about climate change, either on television, newspapers, social networks or in conversations with those close to them. As in other South American countries such as Uruguay, Brazil, Paraguay and Peru and most of Africa, knowledge about this problem is one of the lowest in the world, according to a 2022 survey by Yale University.
Low awareness is not the only threat on the subject. In countries where the percentage is higher, such as China, the United States and many in Europe, new problems creep in, such as corporate greenwashing or political denialism.
In addition, seven years after the first term of the UN Sustainable Development Goals, the proposed goals are still not being met. Therefore, each passing year becomes essential to seek to transform our reality. As a report by the Forética organization for the business sustainability agenda says, “the moment of truth has arrived”.
From Business & Sustainability we identify four trends for this 2023.
In the first place, sustainable bonds appear as a financial mechanism. Issuance during the last year in Argentina reached 17 placements for amounts close to $6 billion and US$ 333 million, which represents a new record in the growth process of this market.
With greater investor awareness and in the face of the economic crisis the world is going through, business models will continue to be redefined throughout the year, with sustainability as an opportunity.
The difficult global context of 2022, mainly due to the war in Ukraine and the breakup between China and the United States, could actually leave an interesting balance in the long term.
According to the World Energy Outlook, the increase in the price of natural gas and fossil fuels could depress demand and give rise to a second trend: the energy transition with, for example, the commitment to clean energy and the increase in the sale of electric vehicles as an outgoing novelty.
Beyond the undeniable importance of the fight against climate change, the third trend is linked to the fact that sustainability continues its expansion process on the business agenda and is no longer conceived exclusively for environmental issues.
Research conducted by Schoroeders, Global Investor 2022 found that investors are also interested in projects linked to quality education (47%), good health and well-being (44%), clean water (39%) and hunger zero (34%), among the most mentioned areas.
There’s an example. Just a few weeks ago, the Pro Mujer social enterprise launched the first gender Negotiable Obligation: the funds will be used to provide loans to low-income women who carry out economic, productive activities or provide services, many of them in informal conditions.
The fourth trend is that sustainability is expanding, not only in its definition, but also in industries: it is a retrograde idea to think that only certain businesses have an ESG agenda. For example, can the tennis industry be more sustainable? That’s what the founders of Deuce, a clothing brand with iconic players on their shirts, made of bamboo cane fiber, asked themselves.
In addition, in alliance with clubs, they are making progress in the recovery of waste such as balls and tubes and reusing them in the packaging of their products. Until this year it was not common to think about sustainability from, for example, a coastal resort. However, in January San Sebastián (La Perla) and Mediterráneo (Punta Mogotes) were the first to receive the “Blue Flag”, an international recognition that rewards the sustainable management of structures, water quality monitoring, environmental education and ensure safety and accessibility.
In a year that is going to be complicated in the business world, the sustainable perspective cannot be left off the table.
*Socio director de Business & Sustainability
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