What: The HBR reviews what happened in 2023 for what regards sustainability.

Why it is important: While everything is not exactly rosy, things are progressing and sustainability will increasingly have to be on every retail leader’s mind.

The year's major sustainability developments are summarized as follows:

1. Anti-ESG Movement's Impact on Companies: There was a significant backlash against ESG (Environmental, Social, and Governance) principles, particularly in the U.S. This movement, challenging "liberal values," caused controversies for companies like M&Ms, Target, and Disney, leading some to adopt "greenhushing" or reducing public discussions on sustainability. Despite this, ESG remained a crucial focus for businesses and investors.

1. China's Leadership in the Clean Economy: Remarkable progress was made globally in clean technology investments, with over $1 trillion spent, surpassing fossil fuels. China played a pivotal role, potentially peaking in gasoline demand and carbon emissions, significantly investing in solar energy, and collaborating with the U.S. on renewables. However, China's continued development of coal plants and global trends toward conservative, fossil fuel-friendly policies posed challenges.

1. Rising Regulations for Sustainability Reporting: New regulations in the EU and other regions demanded more comprehensive reporting from companies on carbon emissions and other sustainability metrics. These regulations created significant workload and complexity for businesses but are critical for transparency and accountability in sustainability efforts.

Other notable trends included advancements in "hard to abate" sectors like steel and aluminum towards lower carbon emissions, increased scrutiny of companies' policy positions versus their sustainability goals, insurance industry's response to climate change impacts, growing consumer influence on sustainability, engagement of Gen Z in sustainability discussions, efforts to quantify the value of nature, and the challenge of ensuring living wages in supply chains.

Overall, these developments signified both progress and resistance in the journey towards a more sustainable, equitable economy and society.

2023: A strange, tumultuous year in sustainability