It is a new year and business leaders are thinking about investing to improve their businesses for the better. Let’s take a closer look at what these important investments are and why leaders are planning to boost them in the coming months. What do these business leaders want to invest in? Here are some of their investment plans:
Sustainability
Research shows that investing in sustainability can bring in good profits over a long period of time. This means companies should operate responsibly, adopt sustainable practice and have strong management to gain returns in the future. According to ESG today, over half of the big business leaders are planning to spend more money on sustainability in 2024. For them, it makes good business sense.
This big increase from last year comes from their awareness of how climate change could negatively impact their business operations. They found 52% of these companies are looking to increase their investments in sustainability, compared to only 33% the previous year. To add to that, the survey also shows that executives are more aware of the risks and opportunities related to sustainability.
ESG (Environmental, Social, and Governance)
ESG is like a tool that helps investors choose companies that are not only good for making profits but also good for the world and the people in it. It looks at how a company treats the environment, how it treats people, and how it’s managed. By using ESG, investors can find companies that are likely to do well not just in their current operations but in the long run too. So, it’s a way to invest in businesses that are both profitable and responsible.
According to ESG today, many companies (about 52%) are choosing to get their supplies from different places because there are now stricter rules. It is about how businesses should be environmentally friendly, treat people well, and have good governance (ESG regulations). These rules include guidelines from the European Union (EU) called the Corporate Sustainability Due Diligence Directive (CSDDD) and a law in the United States called the Uyghur Forced Labor Prevention Act (UFLPA). So, to follow these rules, companies are meticulously changing where they get their materials or products from.
Digital Tools and Technologies
Leveraging digital technology means using computer-based tools and systems. This can make business data and information more secure, improve productivity, help people work from different locations, and give you useful information about how your business works. By doing these things, businesses can become more profitable and competitive over time. Some of the plans are due to the government’s initiative to encourage investments in climate-friendly technology, according to ESG today.
Given that more than half of major business leaders intend to increase their investments in sustainability throughout 2024, this data holds significant relevance for other businesses to consider. As these leaders make these important investments, they are making their businesses ready for a future that is better for the environment, people and uses advanced technology.
