41 Big Ideas that are really ESG Ideas
ESG is everywhere, you just have to look
December is a time for looking back at the past year, taking stock of where we are, and looking forward to the future. Every year, LinkedIn (owned by Microsoft, where I work) asks its Top Voices to think about the ‘Big Ideas’ that will impact us next year.
After a year where many conflated sustainability, values, and ESG, new draft regulations were discussed for corporates and financial services, disclosures dominated corporate mindshare, loss and damage was top of mind, and supply chains moved around. Surely ESG made the list, right?
/Matt checks the list
/Ctrl+F “ESG”
/Sad ding noise with 0/0 results
Sustainability and diversity do appear, but only a paltry four times each. So, what is happening?
Since ESG is everything, every issue on that list is ESG or a material risk and opportunity for someone, but you have to see the world like I do, with ESG everywhere. When you do, you can find a lot of connections between issues, so look for that as you go!
1. Hybrid work will be here to stay (SG)
No trend has increased my productivity more than hybrid work, which is a mixed blessing - I’m buried but get to see my kids before school and after with little interruptions. With the lines blurring, balancing work/life is easier for some and harder for others. This trend appears on the list a few times in different ways.
S = Employees are stakeholders. The Great Resignation/Quiet Quitting, or whatever you call it, means that people have options, and leaders must be flexible to acquire and retain talent.
2. Companies will say farewell to expansive, sprawling headquarters (ESG)
This is already underway but again hits the first point, hybrid work. Here’s why this hits E, S, and G.
E = Construction generates 38% of global emissions. We need to retrofit and reuse buildings.
SG = To the hybrid work point above, employees are stakeholders. Leaders need to drive a strong culture if hybrid work is to succeed. Instead of forcing people back to an office to sit on video calls all day, expectation setting is probably a good start. Plus, it is costly to run and maintain an office building.
3. AI will gain multiple "senses" (ESG)
This is an interesting one where the growth of AI to include multiple senses (audio, video, and language) has applications to support all kinds of innovations, but there are also risks. Here are some examples for consideration:
E = New sensors to measure biodiversity could help a hotel chain create new amenities, but training AI models has a heavy energy cost.
S = Language models can enable collaboration and information exchanges, but the risk of disinformation and bias is very high, based on selected datasets for training.
G = The application of AI with a lens to ethics and reputational risk. Companies must be careful not to augment and scale their bias with powerful technology.
4. The age of the tech CEO hero will come to an end (G)
Even with corporate trust at all-time highs, Silicon Valley is wildly “out of touch” with the rest of the world. Look no further than Twitter. Actually, don’t. Just use Mastodon or Post.news.
G = With growing accountability and diverse voices getting louder, Silicon Valley needs to adapt to the reality around them. You can’t exploit human capital and resources in pursuing never-ending growth. It will backfire on you.
5. A global recession is likely — but it won't last long (G)
I will take this in a different direction because a recession means layoffs. This is like CxO 101. Companies look inward for cost-cutting measures, but in a world with an eye on sustainability, talent gaps abound, and new levels of accountability, what worked previously in times of economic crisis will not work in the future.
G = Boards must consider macroeconomic conditions and adjust accordingly, but it is time for a different approach. Look inward and double down on what’s working. Stop programs/products/efforts that aren’t working instead of laying people off.
6. In-person and online retail will tie the knot (ESG)
So far, most of the list has been broadly material, but this is more material to retail. However, there’s a thread aligned with the second point. Storefronts closed down in COVID need to be reworked for new tenants as online brands look to make a physical connection with consumers.
E = construction generates a lot of emissions. Therefore, we need to retrofit and reuse per the second point above.
S = This trend results from COVID and its impact on consumers, a critical retailer stakeholder group.
G = Leaders need to pay attention to this stakeholder group and balance it against other factors.
7. Cities will feed themselves (E)
Indoor and vertical farming systems could significantly change how food is grown and distributed in cities.
E = More efficient use of urban developed land and reduced food waste comes to mind, but also the risk of an increase in energy consumption for northern cities.
S = Access to fresher, higher quality, and nutritious natural food for citizens.
8. Crypto, facing a trust crisis, will confront its biggest hurdle: widespread adoption (G)
Crypto has primarily been left to speculative investors, with the bigger banks just recently jumping on. Will FTX and the arrest of SBF change that? Indeed, this is a material issue for financial services and maybe retailers, but for everyone else? I’m not sure.
If nothing else, this intersects well with the age of the tech hero ending. Crypto needs credibility if it is to last. Can regulations or central bank engagement build that trust?
G = Leaders at Financial Services firms need to consider their strategy against recent controversies. Also, leaders at crypto firms and exchanges need to work on rebuilding trust if it will endure.
9. The healthcare worker shortage will grow, and we’ll turn to tech for help (SG)
Again, employees are stakeholders, and leaders need to pay attention. While this is material to the healthcare industry, worker shortages exist in many industries. This doesn’t even include talent gaps that exist!
SG = As healthcare turns to technology to fill the gaps (as any industry might), educating technology workers on AI bias and ethics is a must. Technology is a risk and an opportunity, just like any ESG risk.
10. We’ll focus on when — just as much as where — we work (SG)
Along with the first point, hybrid work is here to stay. Employees will work whenever they can, not just wherever they are.
SG = Employees are a critical stakeholder group. Acquiring and retaining talent will rely on respecting diverse work styles. Some are time-bound, not location-related.
11. The school-to-work path will be turned on its head (SG)
College no longer appears to be a requirement for a high-quality job. Not only that, but many universities are now dropping out of the US News and World Report’s college list.
SG = Higher education is ripe for a change, and the talent pipeline is already shifting to accelerate this. Along with avoiding crushing student debt, this is a material issue for universities. Besides dropping degree requirements, new community development programs in the areas where companies are located could disrupt this even further!
12. We’ll turn to the sea to power our electronics (E)
This one is tied to mining rare earth metals from the ocean floor. This material would go into Electric Vehicle (EV) batteries.
E = While we need these rare earth metals for batteries in our EVs and other devices, careful consideration of the ocean ecosystem and robust protections must be in place. Otherwise, we risk collapsing biodiversity. It’s a complex issue that could intersect with point 40.
13. Lab-based meat will hit more plates (E)
Cattle represent 4-9% of global emissions, but overall, 25% of climate impact is from the production and consumption of food. In addition, land use for Lamb/Mutton/Beef is extremely high vs. other proteins, contributing to the issue.
E = While there is a lot of marketing to do (maybe a little S and G here), lab-based and/or plant-based meat has the potential to shift one of the most significant contributors to our global emissions problem and reduce land use for restoration to more natural processes.
14. The US will become a nation of renters and landlords (ES)
This one is complicated, and I’m not sure this will manifest because I’m far from an expert on this topic. Still, I have a few thoughts.
E = More renters will hopefully mean less construction, which for the third time, means lower emissions. This has other economic implications, though, as new construction is often is measuring stick for the broader economy.
S = I’m curious if this intersects with employees and their mobility. Moving around is more manageable than selling and repurchasing a house. People having living options might move to where they want (see point 32 below).
15. Philanthropists will demand less – and trust more (G)
Alright, the list got me at 15 trends. Philanthropy is often not ESG unless it intersects with the company’s material expertise. When it does, it can be bliss and an accelerant to impact.
Still, building donor trust is a material issue for philanthropists.
G = Philanthropy organizations must work on transparency and data sharing to build trust and gain donors.
16. The side hustle will reign supreme (SG)
Again, employees are stakeholders, but could a flexible work schedule (point 10) and hybrid work (point 1) allow employees to be in the driver's seat when considering which gigs to take? You bet!
S = Employees have options now, with opportunities as diverse as they are. As a result, companies will have to compete for an employee’s focus in a way they aren’t used to.
G = Leaders need to build a strategy around this competition. A thoughtful and flexible policy around moonlighting/gigs is highly recommended here, but point 11 may be relevant, too.
17. VCs will stop hunting unicorns and start searching for work horses (G)
Unicorns abound with cloud technologies democratizing access to market disruption, but hard work is valued over an exciting idea. Execution is critical, and “the era of excess is over.”
G = This is a material issue for startup leaders and VCs. Like with anything ESG, engagement is vital. VCs would do well to shore up their due diligence and engagement processes to ensure returns on investment.
18. Our old clothes will become big business (ES)
Secondhand fashion is growing in popularity, extending the lifecycle of a garment. There are at least two considerations here.
E = Clearly, this falls into the E category as fast fashion will be disrupted. Fast fashion is notorious for water usage (dyes) and waste, which this issue directly addresses.
S = Sadly, fast fashion is also known for forced labor/human slavery issues. A pivot might remove some of this, but it might also move investment from legitimate emerging markets.
S = As the article points out, this is an excellent way to build relationships with younger consumers who value the ES issues above.
19. Cities will turn themselves into "urban reserves" to limit mass tourism (S)
People have been cooped up for too long and are expected to start traveling again. Maybe a little too much for some.
S = Cities are limiting the number of tourists, which could restrict economic opportunities for local merchants, hotels, and attractions.
20. ...and we’ll think twice about traveling anyway. (E)
Riding the wave of the last point…
E = as tourism increases, flights increase, which means emissions go up. Sustainable Aviation Fuel and alternative forms of transport should be prioritized. If only the US had a faster rail system.
21. Social media users will turn their back on the algorithm (SG)
Is this the degrowth movement of social media? Can community building shift the ‘people as the product’ model that built many Silicon Valley firms? I’ve seen people leaving the big social players across generations, but the article states otherwise.
SG = Social media users are an important stakeholder group to those companies and brands, but algorithms are becoming exhausting. As a result, social media companies must rebuild trust (and operate ethically). Also, brands must find new ways to engage amidst the current platform shuffle and perhaps spread themselves across the alternatives (see point 6, too).
22. The metaverse revolution will go professional (SG)
I’m not sure about this one from a collaboration perspective. Still, I'm in if we’re talking about leveraging VR and AR to manage physical spaces and products in a virtual environment!
S = As a few others on this list, this represents an opportunity for employees to uncover new skills, ways of working, and flexible working options. Consider the power of not traveling to see a facility or design a product but interacting with a team and facility from your house.
G = Are leaders ready for the ethics, work flexibility, and opportunity this trend would bring? It’s unlikely, but it should be a material consideration in real estate, manufacturing, retail, consumer goods, healthcare, etc.
23. Luxury firms will court the VIC (very important customer) (G)
Even ultra-high-net-worth individuals are stakeholders to someone, I guess. Certainly, I’m not on either side of that equation.
G = For luxury brands, I’d rather see things coming down to democratizing product access to everyone, but hey, understanding your stakeholders is essential regardless.
E side note: I’m curious if we’ll see this typically high-carbon emitting group look to offsets or sustainable lifestyles.
24. Money will rush into women's sports (S)
Women’s sports have grown in viewership tremendously, and sponsorship deals are growing. Athletic brands and media companies must pay attention because a material opportunity is passing.
S = Women’s sports drive a diverse and young audience that is untapped vs. traditional sports. Time to diversify!
25. We will extract carbon dioxide from the air by just doing what we’re doing (E)
I would like to see this come to fruition in 2023, but we’re likely 5-10 years away based on the state of commercialized CO2 removal technologies.
E = Removing CO2 from the air is obviously an E issue.
26. Neanderthals and other ancient human relatives will change how we think about medicine (SG)
We’re all a little bit Neanderthal, at least in our DNA. The health implications may be staggering, pulling our ancestors forward to help us understand and address modern diseases.
SG = The social implications for healthcare and especially poignant coming out of COVID (or living with it). Still, healthcare researchers must consider ethical questions and privacy issues, as with all medical research and testing.
27. We’ll witness the first ransomware war (G)
Technology underpins everything we do, but the threats grow as it becomes more ubiquitous. For example, a new era of technology warfare was ushered in when a Russia-based hacker group forced Colonial Pipeline down.
G = Companies must prepare for vulnerabilities in critical infrastructure and shore up their cybersecurity. Having a disaster plan that includes essential utilities and infrastructure outages is something to consider.
28. Taxis will take to the skies, for the wealthy (E)
Will we see EV air taxis? Possibly as there are some out there, but due to the cost, it will likely be something that the wealthy focus on. Maybe that’s not a bad thing.
E = If EV air taxis could reduce private jet travel, it could be a blessing. But, of course, EV batteries are built on rare earth metals, which are painful to get (see point 12).
29. Schools will go big on tutoring to make up for pandemic losses (S)
COVID has upended the last few years of learning, and some states are flocking to high-dosage tutoring (1:1 or small group tutoring). Did we lose two years of education for our upcoming workforce?
S = There is a risk that wealthy school districts would continue to grow the investment gap in marginalized communities. However, corporates can engage philanthropically in their communities and materially help develop a talent pipeline (see point 11).
30. Companies will hold onto workers, downturn or no (SG)
While employees have long been (and still are) considered your greatest liability, they are simultaneously your greatest asset, especially as a lot of modern corporate value resides in intangibles. Eliminating talent (or even warm bodies who can learn and grow) is no longer an option. Points 1, 5, and 9 are intersectional here.
SG = Plan accordingly during a downturn, leverage technology where you can, but retain and grow your workers to build long-term value.
31. Cities will turn to new – and very old – tech to beat the heat (ESG)
Extreme heat is dangerous, and cities are working to adapt to climate change through old and new technologies.
E = Understanding the climate risk where you operate and where your employees live is critical. However, adaptation may not be enough, so consider what to do when extreme weather strikes.
S = The above E point is critical for your physical assets and for protecting your employees. For US companies, check out heat.gov for planning resources.
G = City and corporate leaders must understand their overall climate risk. This is one reason the SEC and investors are interested in climate expertise on the board and risk on the balance sheet. It matters!
32. The working class will head for higher ground (ES)
With extreme weather growing, people are moving away from high-risk coastal areas subject to flood risk. Insurance is already strained under these new conditions.
E = Again, this is about climate risk for homeowners and businesses. With hybrid work becoming the norm, can a company decentralize its operations enough to survive extreme weather? Probably better than centralizing operations.
S = Climate refugees and mobility are critical considerations for governments, taxes, services, etc. For example, we’ve already seen the effects of extreme weather (and a lack of civil investment) here in the US, resulting in water issues for Jackson, Mississippi.
33. We'll be wearing mushrooms and seaweed (ES)
A lot of our clothing is made of plastic. Like our proteins (point 13), turning to plants might be an alternative.
E = While still experimental, plant-based fabrics could help lower plastics in clothing, which frequently appear and are often oil-based.
S = Again, as we saw in point 18, there could be ripples across emerging markets upstream in the fast fashion industry that would need to be considered.
34. Nations will sidestep U.S.-China tensions and go their own way (G)
We’re already seeing this trend with the decoupling of the supply chain. Companies will do what they need to keep goods and services moving to their customers. This means navigating complex geo-political waters.
G = Leaders must understand their economic and ESG risks across their suppliers to make informed decisions that build resilience. A myopic view against a global economy will not work, even if you aren’t a multi-national, because chances are, your suppliers are.
35. Our finances will become boring (and that’s a good thing) (G)
Financial services firms have a material intersection here as people might return to the basics for savings and investing.
G = This is a material issue for the product managers and financial advisors/family offices. Gen Z is a new generation that needs traditional financial advice and products that maybe are not delivered traditionally.
36. We’ll learn to hang out at work, without the office (S)
Another intersectional point with the first one, but with a different spin. This one is about trying to recreate the informal connections in the office around meetings by leaving extra time for open conversation.
This is a more straightforward approach than the water cooler app I built early on in COVID.
S = Don’t underestimate the need for people to connect around belonging, learning, and connection. This builds a strong employee culture and can result in employee retention.
37. The labor movement will surge, and employers will fight back (SG)
Labor rights and accountability are at all-time highs with walkouts and union campaigns all over the place, and people are good with that. Union approval ratings are at the highest point in the past 50 years. If employers fight back, they will be disadvantaged in today’s world of accountability and public opinion.
SG = Throughout this list, we can see trends that show workers have options. Some will stay and fight. Others will flee to the next opportunity. So don’t just treat your workers well; understand them as stakeholders in your business.
38. Menopause will become big business (S)
With life expectancy high, it’s a wonder it has taken so long for menopause to get attention. Besides other gender equity issues, this one has enormous commercial implications as healthcare opportunities will grow to service up to 1.2B women by 2030!
S = Stakeholders, like consumers, have different sub-groups. Mature-age workers, employees, and consumers are overlooked areas. Don’t forget that there is diversity and nuance across all stakeholder groups, including ones around age.
39. Mental health check ups will become the new annual physical (SG)
This one is worth the direct quote from the LinkedIn article:
According to the CDC, nearly 1 in 5 Americans experience mental illness in a given year. Yet there is an average delay of 11 years between initial symptoms and intervention. Addressing symptoms early on with a primary care doctor or mental health professional can keep problems from turning into crises.
Besides climate change, addressing mental health is one of the key issues of our time.
SG = We might see new insurance plans developed around mental health, a key consideration for employers looking to keep employees safe and cared for.
40. More nations will give animals, trees and rivers the rights of people (EG)
What an idea to appear during the week of COP15! We can no longer protect humanity alone but must extend biodiversity rights. After the horrific land spill in Kansas from the Keystone Pipeline, something has to be done, and corporations need to be held accountable for their transgressions.
E = We have to protect biodiversity. A 2018 WWF report claims it is worth $125T, but ultimately it is invaluable as it represents the whole of our planet, which, despite billionaires’ best efforts, we can’t get away from.
41. We’ll see the formation of the next wave of game-changing startups (ESG)
When we come out of this economic downturn, or whatever your choice of phrasing is, startups will be empowered with even newer technologies to disrupt industries and the world. Sitting on the LPAC of Morgan Stanley’s Next Level Fund and seeing entrepreneurs try to solve the issues that impact them most, it is clear that the next round of startups will be focused on ESG issues.
After all, ESG issues are fundamental to our world, each other, and modern business. As we’ve learned here, they are EVERYWHERE.