The annual World Economic Forum will be held from January 15 to 19, with more than 800 business leaders and dignitaries from around the world gathered in Davos, Switzerland. The theme of this year's forum is "Rebuilding Trust", hoping to rebuild social and international trust in the face of political and economic instability such as the Gaza crisis, the war in Ukraine, and the general election year.
Davos is an important conference for thinking about business innovation, cooperation, and interconnection between decision-makers. This year’s topics focus on climate change and artificial intelligence. Different from the past, companies no longer just talk about climate resilience, but also start to think about regeneration. They hope not to just passively respond to climate change, but to lead a new economy and lifestyle with bolder and proactive strategies.
Climate change crisis shifts from “response” to “regeneration”
Extreme weather events occur frequently, and companies often have to deal with manufacturing crises and increasingly common carbon fees or tariffs. This year's economic forum has new ideas, believing that corporate sustainability requires a more active approach, called regeneration.
"BBC" reported that Gim Huay Neo, global head of the World Economic Forum's Nature and Climate Center, said that the challenge for companies is to maintain growth and create profits, while also reducing carbon emissions and natural resource consumption. To achieve these goals, a new economic model and even a new lifestyle must be established. And, the new life will be better than the current life.
Kearney, a world-renowned management consulting firm, also published a report on corporate regeneration. Kearney explains that regeneration is a bolder, more proactive business strategy. Companies cannot just pursue stability, they must act bravely. For example, we cannot rely on a single supply chain, but must be diversified and pay attention to circulation and flexibility. New technologies and data analysis are also very important so that companies can continue to create new value.
Richard Forrest, head of Kearney's global sustainability department, cited outdoor clothing and supplies brand Patagonia as an example. The company uses cotton recycling and regenerative organic farming methods to reduce cotton purchases and reduce cotton costs. The harm of production to the environment.
Political and economic prospects are unclear, AI creates a new situation
2024 is a super election year around the world. More than 60 countries including the United States, India, and the United Kingdom are about to hold elections. Coupled with the Russia-Ukraine war, tensions in the Middle East, and uncertain political and economic prospects, business leaders are aware of the importance of long-term response to shocks. Participants were also very concerned about whether former US President Donald Trump would return to the White House and what shock bombs he would drop on economic and climate policies.
The rise of artificial intelligence (AI) has become a hot topic at this year’s forum, and OpenAI CEO Sam Altman also attended the forum. People from all walks of life are optimistic about the amazing potential of AI, but they are also worried that it may spread falsehoods and misinformation.
Jesper Brodin, CEO of IKEA, said that artificial intelligence is interesting, but it pales in comparison to the economic transformation required by climate change.
References:
*World Economic Forum (January 4, 2024), Forget resilience, to truly thrive, businesses must set their sights on regeneration
*BBC Worklife (19 January 2024), Davos 2024: The future of sustainable business is 'regeneration'
*World Economic Forum (January 17, 2024), Davos 2024 Day 3: Some of the key moments
*World Economic Forum (January 19, 2024), Davos 2024: 4 things to know
Source: Environmental Information Center
