Based on the data from the Lynxeye Purpose Index™ 2023, we have identified eight trends that will affect purpose-led companies in the next year.
Purpose trend 2023
Care for resources
We’re at a point in time when environmental responsibility must be a top concern in business, because it’s a top concern of people. Companies that fail to minimize their impact on the planet and use resources carefully will be questioned by many critical recession customers.
The increased urgency of the climate crisis and rising levels of inequality have made environmental responsibility, and specifically how we use our natural resources, more important to people. An economic downturn will accelerate this further, because in times of limited means, waste becomes taboo. This is especially true when energy resources are a key underlying issue in many parts of the world.
Both the most purposeful companies and those increasing their purpose index in this year’s study are characterized by environmental responsibility. Challenges related to using resources responsibly and minimizing waste are also the most important ones companies should be helping to solve.
—The study also indicates the importance of acting to create real change. This is not the time for greenwashing.
People are worried about the collective impact on the environment and climate and want companies to be a big part of the solution. Companies can live up to these expectations by ensuring they minimize their impact on the planet and by using resources carefully, which also includes recycling and minimizing the wasting of food, for example.
The study also indicates the importance of acting to create real change. This is not the time for greenwashing. Environmental responsibility must be built into the core business and permeate all aspects of the company, inside and out. Otherwise, the critical recession consumer will call out false claims and greenwashing.
The following companies scored high on associations related to caring for resources in Lynxeye Purpose Index™ Global 2023.
Data deep dive
We see a consistent pattern in all seven markets surveyed in the study illustrating major problems and challenges for companies related to sustainability, climate and, above all, responsible use of and care for natural resources that they are failing to deliver on.