If you think that digital transformation marks a turning point for business operations, or that AI is playing an increasingly significant role in driving organizations, you may be right. But you might not have considered that the most powerful trend at present, and one that consumers greatly value, is the "sustainability trend."

In 2023, sustainability will be embedded in every dimension of business operations. It is a part of future trends across technology, marketing, and consumer preferences and can be considered a dominant global trend of the year. Therefore, when you see the policies guiding various businesses, you will find that many companies' strategies are often tied to issues of climate change, alternative energy, eco-friendly packaging, and good corporate governance principles.

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SCGC is committed to creating innovations that respond to sustainable development. Take, for example, SCGC GREEN POLYMER™, the innovative plastic designed with environmental sustainability in mind. It encompasses four solutions based on the principles of the circular economy: Reduce, which aims to lessen resource usage; Recyclable, designing for recyclability; Recycle, promoting recycling; and Renewable, encouraging biodegradable and circular resource use.

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The Sustainability Trend: Viewing Sustainability as a Business Foundation

Leading consulting and research firms have unanimously confirmed that "sustainability" is the year's trend and presents an opportunity for businesses that adapt early to increase their profits through operations based on ESG principles. This ensures that consumers are green in thought and ready to actively support eco-friendly businesses.

McKinsey & Company, a global consulting firm, in collaboration with NielsenIQ, a market research expert, surveyed the sales of over 30 types of consumer goods, of which consumers spent nearly half a trillion dollars over the past five years. They found that products related to ESG (Environmental – Social – Governance) saw an average five-year sales growth of 6.4%. In comparison, products that did not specify ESG compliance only saw an average five-year sales growth of 4.7%.

Gartner Inc., a leading research and consulting firm, viewed that in 2023, besides technology trends, sustainability will be a foundation that every organization must take seriously and drive earnestly. This is to comply with regulations, practices, and international rules aimed at collectively caring for the environment and society concretely. It also needs to respond to the expectations of consumers who want to see the business sector take responsibility for the community and are ready to fully support eco-friendly brands.

Gartner's survey also indicates that even IT executives must shift their business focus to the foundation of sustainability, as they see environmental and social changes as top issues that investors care about, second only to business profits and revenues. This means organizations need to strategize to meet sustainability challenges, leading us to expect that IT organizations will start paying attention to developing product efficiency to deliver sustainability solutions to their customers.

In addition, DMNews, a marketing news website, presented an article, "5 Global Trends Impacting Digital Marketing in 2023," highlighting the latest marketing trends, with the sustainability trend being one to watch. This is due to the increasing proportion of the new generation becoming the market's main consumer group. These consumers place great importance on environmental issues and expect businesses or brands to seriously drive ESG initiatives. This has led brands to become more proactive and shift towards sustainability to win over consumers.

Gen Z: The Sustainability Generation Driving the Sustainability Movement

We all know that the Gen Y group, or those aged 27 - 41, represents a large population with substantial income and purchasing power. Data from MSCI ESG Research LLC indicates that 95% of this group values sustainable investment. They look for investments in businesses that operate based on ESG principles. However, with the demographic shift, the Gen Z population is starting to grow and play a role, leading to significant changes in the business world.

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SCGC is one of the organizations that has consistently conducted business operations based on ESG principles. That is, it gives importance to the environment (Environmental), takes responsibility for society (Social), and adheres to corporate governance (Governance) principles. At the same time, it is ready to be a model for sustainable development, in line with the United Nations' SDGs or Sustainable Development Goals. SCGC has continuously improved its sustainability performance, which can be further learned from their sustainability report > Click [here].

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Gen Z, or those aged 11 - 26,  represents the next wave that will bring positive impacts to the world. They expect businesses to operate with social responsibility and be highly aware of climate change. Data from Deloitte indicates that Gen Z is more proactive in shifting behaviors toward sustainability than other groups. Over 50% choose to reduce their purchases, and 45% decide to stop buying or supporting brands that might harm the environment or have concerns about ethics and sustainability. Furthermore, data from First Insight and the Baker Retailing Center found that Gen Z prefers eco-friendly products over name-brand ones. These trends show that demographic changes significantly drive businesses and are crucial to propelling the world towards sustainability and overcoming climate change.

One could say that these demographic shifts reflect the future of our world. As consumers of all ages are becoming increasingly aware of sustainability, it has become a trend of the year that businesses cannot ignore and must adapt to in order to create positive outcomes for the world. Organizations that are ready and can adapt early will win the hearts of consumers, leading to long-term profits for their businesses.