Leading business sustainability trends in 2024 that are shaping the future

As 2024 unfolds, it is clear that business sustainability is no longer just a trendy phrase but a fundamental aspect of corporate strategy worldwide. Businesses are increasingly embedding sustainability in their organisations to address environmental and social issues and gain a competitive advantage. 

It’s no surprise when you consider that 92 percent of consumers are more likely to trust eco-conscious brands. One of the most helpful ways to stay ahead of the curve, especially regarding sustainability, is keeping your ear to the ground for the latest trends. Below, we share the leading business sustainability trends to help you reshape your company’s future.

Sustainability trends in 2024

The below trends reflect a growing consensus on the need to not only reduce environmental impact but also enhance economic and societal resilience.

Adopting circular economy models

Companies are increasingly adopting circular economy principles, moving beyond traditional take-make-waste industrial models to ones that are regenerative by design. This includes efforts to increase product longevity, reuse materials, and recycle waste back into the production cycle, thereby reducing environmental impact and driving greater resource efficiency with cost savings.

Integrating ESG

Next on our list of business sustainability trends in 2024 is ESG integration. ESG factors are becoming central to corporate strategies, with investors and customers alike demanding greater transparency and accountability. Companies are not only expected to perform well financially but also to demonstrate their commitment to environmental stewardship, social responsibility, and ethical governance.

Tackling Scope 3 emissions

Companies are increasingly focusing on reducing their carbon footprints. However, in 2024, the emphasis has shifted beyond direct operations (Scope 1 and 2 emissions) to include indirect emissions (Scope 3) that occur throughout their value chain. This shift is happening as businesses come to learn that direct emissions are not enough to deliver on the Paris Agreement and stunt global warming. Companies actively reducing their Scope 3 emissions are improving their sustainability credentials, strengthening their supply chain resilience, and unlocking innovation in resource utilisation and product development. 

Building sustainable supply chains

Sustainable supply chains are a key trend in 2024 as companies grapple with the challenge of integrating sustainability. Consumers are becoming more conscious of the environmental and social impacts of their purchases. Companies are scrutinising their supply chains more closely. Sustainable supply chain management involves incorporating eco-friendly and ethical practices throughout the entire supply chain, from sourcing raw materials to manufacturing processes and distribution.

Incorporating regenerative agriculture practices

There is a growing shift towards regenerative practices in sectors dependent on natural resources, such as agriculture and forestry. These practices go beyond sustainability to actively improve soil health, water management, and biodiversity, thus contributing to the overall health of the ecosystems they operate within.

Exploring digital sustainability

Digital sustainability has proven to be another of many business sustainability trends in 2024. Digital technology plays a crucial role in advancing sustainability goals. From AI and big data analytics that optimise resource use to blockchain ensuring transparency in supply chains, technology is a key enabler in tracking and managing sustainability efforts more effectively and efficiently.

Prioritising employee engagement and wellbeing

Recognising that sustainability extends to human resources, companies are placing a greater emphasis on employee engagement and well-being. Initiatives include promoting diversity, equity, and inclusion, supporting mental health, and ensuring fair labour practices, all contributing to a more resilient and productive workforce.

Focusing on climate resilience and adaptation

Climate-related threats are intensifying, and businesses are working to mitigate their impacts on the climate and adapt to the changing environmental conditions. This includes assessing climate risks to their operations and supply chains and developing strategies to increase resilience against extreme weather events and other climate impacts.

Leveraging impact investing and green finance

There is increasing capital allocation towards projects and businesses that provide environmental and social benefits. Impact investing and green finance are seeing a significant increase, driven by the realisation that sustainable investment can yield long-term, profitable returns. Therefore, it is no surprise that impact investing and green finance are becoming major business sustainability trends.

Introducing comprehensive sustainability reporting

Sustainability reporting has become a dominant trend across the global business landscape, significantly propelled by the introduction of the Corporate Sustainability Reporting Directive (CSRD). This new Directive mandates a more comprehensive and rigorous framework for reporting sustainability activities and impacts, affecting thousands of companies across Europe. As such, sustainability reporting is shaping up to be a cornerstone of corporate governance and strategy. 

Rising to the biodiversity emergency

In 2024, corporations are acknowledging that biodiversity loss poses significant risks to supply chains, resource availability, and the regulatory landscape, necessitating proactive measures. In response, they are actively embedding biodiversity considerations into their sustainability agendas. Businesses are implementing practices that promote ecosystem health, such as sustainable sourcing, habitat protection, and investments in biodiversity-positive projects.

Conclusion

The leading business sustainability trends in 2024 represent a significant evolution in how businesses approach their societal role. By adopting practices ranging from circular economy models to regenerative agriculture and focusing on ESG integration, they are not just responding to external pressures but actively pursuing opportunities to champion sustainability. 

These trends are paving the way for a new era of business that values social justice, environmental integrity, and economic inclusivity equally. If one thing is clear from the trends above, it is that the future of business will be increasingly interlinked with sustainable development. This will demand collaboration, sustainable innovation, and a steadfast commitment to transforming challenges into opportunities for resilience and growth.