ERM’s quarterly trends report provides a concise summary of the latest sustainability issues impacting the private sector. This quarter’s update tracks four key corporate sustainability macrotrends affecting business decision making. 

Trends include:

  • Rising energy demand driven by Artificial Intelligence is causing a race for clean power - The rapid growth of artificial intelligence (AI) technologies is significantly increasing global energy consumption, driving demand for cleaner power. There is a growing conflict between AI’s energy consumption and the industry’s push for decarbonization, which in some regions, leads to a return to fossil fuels.
  • Regulatory pressure and crackdown on misleading sustainable plastic claims trigger the development of innovative alternatives - False corporate claims on sustainable plastics are increasingly called out in court and by regulators. This pressure has been driving innovation and demand for sustainable packaging but has also led to corporate backtracking on earlier commitments.
  • Extreme weather patterns force companies to implement climate adaptation strategies - The economic losses and financial risks caused by climate change and extreme weather are rising sharply. Companies are trying to soften the blow by implementing resilience and adaptation strategies. By preparing, they avoid risks and higher costs of capital.
  • Companies step up decarbonization throughout their value chains and tighten the thumbscrews on suppliers - Companies are intensifying decarbonization efforts throughout their value chains, both in their own operations and by pushing suppliers to do the same. At the same time, geopolitical tensions force companies to shift their supply chains, posing new trade-offs between environmental objectives and geopolitical realities.

Our quarterly trends update provides essential reading for any business leader looking to understand the strategic implications of today’s sustainability context.

The October 2024 quarterly trends insights were compiled by Dia Rizakos, Lauren Kwok, Andrew Angle, Jacco Kroon and Aiste Brackley at the ERM Sustainability Institute.