Corporate Social Responsibility (CSR) has long since ceased to be a trend. It is serious business. As an organization these days, you really can’t get away with not taking into account your impact on the environment, the people you work with, and society as a whole. But how do you do that concretely and where do you put the focus? Difficult questions, and the answers will vary for each organization. However, one thing is certain: the following four CSR trends are essential in 2021.
CSR trend 1: Sustainable products
Consumers increasingly realize that the choices they make affect society and nature. Consequently, they are increasingly choosing products from brands and stores that are mindful of their broader social and ecological impact. Figures from the Brand & Society Monitor by b-open and MarketResponse show that 78% of consumers value the social role of companies. And a quarter expect to consume more sustainably this year than a year earlier. It is younger generations in urban areas in particular that are driving this development, so it is to be expected that this trend will continue.
This movement on the demand side of the market presents opportunities for innovative companies, but also risks for companies that do not go along with it. Particularly in sectors such as personal care, energy, food, housing, clothing and transportation, the demand for green and responsible is rising, while the piece of the pie left for companies that are only concerned with their own profits is thus getting smaller and smaller.
CSR trend 2: ESG investments
Not only consumers, but also investors want more green companies. So-called Environmental, Social and Governance data, or ESG data for short, is playing an increasing role in determining which companies get investment, and which do not. In four years, the global value of assets where investment decisions are made based on ESG data has as much as doubled, to $40.5 trillion by 2020.
This development also presents opportunities for companies with green ambitions, and risks for those that do not. For your future capital market opportunities, it is therefore important to integrate CSR goals into your business operations, make results measurable and report according to ESG criteria. Empact is happy to help you with that.
CSR trend 3: Greenwashing really can’t happen anymore
A logical consequence of the two “trends” mentioned above, is that as an organization you want to show your best side to the world. There is nothing wrong with that. It becomes more problematic when companies pretend to be more sustainable and responsible than they actually are. We call this phenomenon greenwashing. Think of deodorant labeled “based on natural ingredients,” but in which that base is enriched with a lot of synthetic chemicals. Or think of banks that boast of supporting all kinds of green initiatives, but in the meantime make a lot of money with .
This was never really possible, but from now on it really can’t be. On April 21, 2021, the European Union launched the Corporate Sustainability Reporting Directive (CSRD). This law requires every company with more than 250 employees to provide insight into the impact of their business activity on people, the environment and society from 2023 onwards, according to standards set by the EU. This information must then also be reviewed by auditors to ensure that the information is actually accurate. In other words, no large company in Europe will be able to pretend to be greener than it is without being caught out. A good thing!
CSR trend 4: Becoming climate neutral
One of the greatest societal challenges of our time is stopping global warming. There is only one way to do this: by drastically reducing greenhouse gas emissions. Therefore, it is clear to everyone that no organization can be socially responsible without greatly reducing its carbon footprint. Or better yet, by taking the lead and striving to become a company that emits no net greenhouse gases and thus has no impact on the climate. The latter is what we call being climate neutral.
So the CSR trend of 2021 (and that of the next decade) is to be climate neutral by 2030. Among others Danone, The Body Shop, Dopper, Tony Chocolonely, Microsoft, The Guardian, Vodafone and Allbirds have promised not to emit an ounce of CO2 from January 1, 2030. Maybe something for you, too?