“Rebuilding Trust”

This year's theme is 'Rebuilding Trust,' a significant focus following last year's key topic of polycrisis. This notion of a complex series of interconnected global crises encompassed a range of issues from the pandemic, geopolitical unrest, the energy crisis, the cost of living crisis, to technological advancement, economic instability and low growth era – all compounded by the growing pressure of climate change.  

The insights garnered from the previous WEF forum underscored crucial strategies for businesses. Prioritizing resilience, sustainability, and diversification emerged as fundamental approaches in navigating the evolving business landscape and addressing climate change. Additionally, inclusivity, especially in embracing underrepresented communities, was emphasized as essential for maintaining competitiveness. Finally, the forum highlighted the inevitable and increased integration of artificial intelligence into daily operations, urging businesses to proactively prepare for this transformative shift.^[ii]

The 2024 forum aims to address and remedy the trust deficit stemming from the challenges of the polycrisis. The WEF will endeavour to restore essential cooperation between the public and private sectors, vital for translating ideas into actionable solutions to address the crises.

In the light of the main goal, the WEF 2024's programme is built around four critical themes:

1. Achieving security and cooperation in a fractured world torn by the ongoing conflicts.

2. Creating growth and jobs for a new potentially low-growth era. In light of widespread challenges such as the cost-of-living crisis, economic downturns, and persistent unemployment in many countries, the WEF aims to propose solutions to boost economic growth while prioritising people's well-being.

3. Leveraging Artificial Intelligence as a driving force for the economy and society, while managing regulatory challenges and technological advancements in other areas. This is particularly important given the risks and tremendous opportunities that AI is unlocking.

4. Developing a long-term strategy for climate, nature and energy, while balancing trade-offs for social consensus. With climate change intensifying and extreme weather events multiplying, this year's forum is set to focus into climate. However, the agenda extends beyond climate alone. Recognizing that addressing climate issues goes beyond merely reducing emissions, experts will place additional emphasis on the intertwined challenges of nature and biodiversity loss as well as the disproportionate impact of climate change on vulnerable and marginalized communities.

With the WEF's Risk Report ranking extreme weather as the top risk most likely to present a material crisis globally, the climate pillar takes precedence this year.^[iii] The report shows environmental risks continue to dominate the risk landscape, evidenced by this summer's recording beating temperatures, and the national climate action plans falling short in curbing global temperature rise to 1.5^oC and achieving the objectives outlined in the Paris Agreement.^[iv]

What this means for business?

This fourth pillar is of particular importance for responsible business, making it clear that companies will face increased scrutiny regarding their sustainability performance. Companies can use sustainability as a key driver to positively engage with their stakeholders.

Long-term focus on sustainability

Developing a sustainability strategy or improving compliance with the key sustainability standards would help to bring a competitive edge to the business. Here is a three-step approach:

• Set ambitious net-zero emissions targets aligned with a net-zero trajectory.
• Validate the targets using the Science-Based Targets initiative (SBTi).
• Develop interim five-year targets and commit to transparent reporting.

Stay ahead of the curve

The WEF sustainability pillar this year includes not only climate, but nature aspects as well. This signals that frameworks that capture data around nature and biodiversity loss will become more important. The recently released Task Force on Nature-related Financial Disclosures (TNFD) will likely gain increasing prominence, potentially transitioning from a voluntary framework to a mandatory one. Take the opportunity to lead by adopting it.

Seize momentum

The WEF forum has the eyes of the world on it, so it is a great opportunity to engage with your stakeholders. You can use the newsbreak to engage with partners in your supply chain, reach out to consumers or socialise your new climate strategy with your investors. Occasions like WEF serve as pivotal moments to engage with diverse stakeholders and foster meaningful conversations. Aligning with the focus of the Davos’ forum is a chance to participate in shaping discussions and forge partnerships on critical environmental issues.

Businesses can proactively accelerate their sustainability journey to avoid escalating costs. One effective approach is through sustainability reporting, a tool that enhances your business's sustainability practices.

If you would like to speak to one of our sustainability reporting and communications specialists about how you can better engage with your stakeholders around your sustainability strategy please get in touch with Naomi Hawkins, Head of Business Development. 

_{[i] Davos draws record crowds, but its relevance is fading | CNN Business}

_{[ii] Looking into 2023: Key Takeaways from Davos. Forbes.  https://www.forbes.com/sites/forbestechcouncil/2023/02/24/looking-into-2023-key-takeaways-from-davos/}

_{[iii] Global Risks Report 2024 | World Economic Forum | World Economic Forum (weforum.org)}

_{[iv] National climate plans won't limit warming to 1.5°C, so COP28 is critical, UN warns - Scimex}