The Eye of a Perfect Storm: A Business Year in Review
2022 demonstrated to us, through a perfect storm of social-ecological crises, that sustainability is the future for the business sector. As a way to close the book on 2022 before we settle into the holiday season, we have summarised some of the trends of the past year.
2022 has been a year marked by multiple converging crises, forming a perfect storm. The COVID-19 pandemic had barely begun to subside by the time war in Europe broke out with the Russian invasion of Ukraine in February, further accelerating the world on its path towards recession and increasingly unstable supply chains. During the summer, a series of climate extremes were unleashed with record droughts in Europe and record floodings in Asia, Meanwhile, mounting geopolitical tensions between the US and China loomed in the background. But this wasn’t the end: autumn brought us a deluge of right-wing victories in national elections across Europe, from Italy to Sweden, leading to fears of backtracking on environmental progress.
As we now welcome the holiday season and find temporary refuge in the eye of this storm, people across Europe are facing soaring inflation with record breaking energy and food prices. From the US to the UK, supermarket shelves have been emptied of seasonal staples such as turkey and eggs as the poultry industry is hit by the worst bird flu outbreak ever seen. One of these trends on its own would be problematic enough, yet the combination of all of these trends — COVID, climate, and conflict — is a clear marker that our present and future is increasingly unlike our past. We are heading towards a level of volatility and disturbance that in our hyperconnected and globalised world is quickly becoming the new “normal.”
Though it has been a turbulent year, solutions that have emerged from within the private sector provide us with hope. There has never before been so much focus on sustainable business than there has this year. Major international players in the food system are investing in nature-based solutions and scrapping their sustainability strategies for sustainable business strategies. Though the challenges are enormous, the seeds they are sowing acknowledge a need for deep transformation. Norway is leading in the legislative race, requiring state-owned companies to set science-based climate targets and all major retail companies to ensure transparency throughout value chains. Large management consultancies have also changed their tune and nowadays repeatedly present the business case for building resilience, climate-proofing supply chains, and developing a robust DE&I strategy.
We encourage all business leaders to take this holiday season to think deeply about the possibilities we have for a future within the boundaries of our planet and the need for us to catalyse every ounce of power just waiting to be unleashed within the private sector. While the storm we weather is rough, we have the tools necessary to follow a new North Star and set ourselves for smoother sailing ahead. The future of business is sustainable.
Happy holidays from the team at Prosperous Planet! Reach out to us at www.prosperousplanet.com or through contact@prosperousplanet.com to kickstart your sustainable business strategy in 2023.
