How Will Sustainability Change the World in 2050?

1. ESG Services WHITEPAPER How Will Sustainability Change the World in 2050?

2. How Will Sustainability Change the World in 2050? As the world has been struggling with climate change, resource depletion, and societal disparity, sustainability has gained importance in recent years. With the United Nations’ Sustainable Development Goals (SDGs) as a guiding framework, governments, businesses, and individuals worldwide have begun to take action to create a more sustainable future. As we look toward the year 2050, it is clear that sustainability will continue to be a critical issue for our planet. With a projected global population of 9.8 billion by 2050, the demand for resources and the pressure on our natural environment will only increase. However, this also presents an opportunity to create a more equitable and sustainable world with innovative technologies, policies, and practices to help us achieve the SDGs and ensure a prosperous future for future generations. This whitepaper aims to provide a comprehensive overview of the role of sustainability in shaping the world in 2050 and to inspire action toward a more sustainable future for all. 4 Plausible 2050 Outcomes Business as Usual Sustainable Growth Green Collapse and Adaptation Transformation It is essential to think about various conceivable futures for how sustainability might change the world in 2050. Although no one can foresee the future with absolute certainty, planning every scenario allows us to imagine possible outcomes based on various presumptions and motivating factors. Listed below are four possible scenarios. 2

3. How Will Sustainability Change the World in 2050? Business as Usual: In this case, the world keeps going in the same direction, prioritizing economic development over sustainability. Governments and companies prioritize short-term gains over long-term viability, exacerbating social unrest, disparity, and environmental damage. With more frequent extreme weather events, increasing water levels, and a loss of biodiversity, the effects of climate change worsen. This hypothetical situation depicts a world where economic development continues to take precedence over sustainability, creating problems like severe weather patterns, running out of potable water, etc., in the future. Green Transformation: A combination of technical advances, governmental changes, and societal shifts results in a fast and complete transition to sustainability. The dominance of renewable energy sources overtakes the complete phase-out of conventional fuels. Green areas, public transit, and infrastructure for renewable energy sources are all incorporated into the construction of sustainable communities. The circular economy replaces the conventional straight model consumption, making sustainable consumption and production patterns the new standard. The scenario in question depicts a society where sustainability is the norm, with substantial advantages for business, society, and the environment. of production and Sustainable Growth: Governments and corporations emphasize sustainable development because they understand how crucial it is to balance economic, social, and environmental goals. In addition to promoting economic growth and employment creation, new technologies and creative business models significantly efficiency and environmental performance. Because of increased access to renewable energy, healthcare, and education, improvements in societal and environmental factors are possible. Nevertheless, difficulties persist, especially concerning ecosystem deterioration and climate change. Collapse and Adaptation: This situation results in significant social, economic, and environmental failures because it is impossible to surmount the sustainability challenges. As a result of pervasive food and water shortages, mass migrations, and disputes over resources, climate change’s effects have become increasingly severe. The inability of companies and governments to respond to these problems results in broad-scale economic and societal disruption. With people cooperating to create more robust and sustainable systems from the bottom up, new community resilience and adaptation types are starting to appear. increase resource The World by 2050: If No Actions Are Taken Expected temperature changes in 2050 Increase in temperature in warrest month Ljubljana 8C Ljubljana Madrid 6.4C Madrid Seattle Seattle 6.1C London London 5.9C Moscow Moscow 5.5C Mexico City Mexico City 4.2C New York New York 4C Dilhi Delhi 3.5C Istanbul 3.4C Istanbul Beijing 1.9C Beijing Tokyo 1.9C Tokyo 3

4. How Will Sustainability Change the World in 2050? The most critical concern of our generation and time is climate change. It alludes to the gradual increase in the earth’s surface temperature and is having significant, possibly long-lasting effects on the world in which we exist. Human activities release greenhouse gases into the atmosphere, such as carbon dioxide and methane. Our world is warming up like a greenhouse due to the accumulation of these pollutants in our atmosphere. NASA reports that out of the past 19 years, 18 years have been the hottest on record, and the tendency is accelerating. In this section, we identify several areas that are vulnerable to risk and imagine a world in 2050 if no efforts are made to address the climate change crisis, which is one of, if not the most severe dangers to companies and society at large. Our Residences and Workplaces Climate change, such as heat storms, may limit people’s ability to work outside and, in severe instances, endanger their lives. According to a NASA climate projection for 2050, if greenhouse gas emissions continue to grow at their current pace, the world could warm by an extra 1.5 degrees Celsius by that time. Extreme heat may also cause changes in the disease carriers that eventually affect human health, forcing people to work indoors or take frequent pauses to avoid heatstroke. Infrastructure Extreme heat may significantly reduce the effectiveness of global electricity networks. Up to 185,000 aircraft travelers could be delayed annually due to excessive heat (48 degrees Celsius), which is about 23 times more than it is currently. Hurricanes and other severe weather conditions will probably affect infrastructure that benefits private citizens and businesses. Physical Assets In general, physical assets are highly vulnerable to climate threats. For instance, offshore structures and transit networks are subject to various environmental conditions. In contrast, excessive flooding or forest fires may cause serious harm to or even the destruction of buildings. By 2050, it is expected that $1.6 trillion worldwide and $1.2 trillion in Asia’s physical wealth could be lost due to riverine flooding. Food Production The effectiveness of food networks is expected to change with the environment, both for the better and worse. A warming environment may increase productivity in some areas while decreasing it significantly in others. While soy would profit from warmer temps by 2050, rice and wheat might become more volatile. According to another scenario research, agricultural yields will have decreased by one-fifth by 2050, making it impossible to support the world’s expanding population. Thus, climate change will significantly affect the food supply. 4

5. How Will Sustainability Change the World in 2050? Air Quality The leading cause of fatalities globally attributed to the environment is anticipated to be outdoor air pollution, specifically particulate matter, and ground-level ozone, by 2050. According to research, ozone-related early deaths will account for 1,126,000 annual deaths by 2050 if the current emissions remain the same. Waste Management According to the World Bank, as urbanization and population rise, worldwide waste will increase by 70% by 2050, necessitating improved garbage collection, recycling, and professional clean-up efforts from the public and private sectors. Public Health An increase in temperature could be a significant danger to public health because it impacts how chemicals and other waste are disposed of, the purity of drinkable water, and the availability of landfill space. According to the WHO, between 2030 and 2050, climate change’s impacts will cause an extra 250,000 deaths globally annually, mostly from malnutrition, malaria, diarrhea, and heat stress. Threats of Precipitation Extreme precipitation events like floods and droughts occur more frequently and intensely in some areas. By 2050, Asia could see a three- to fourfold rise in the frequency of severe precipitation occurrences. Water Management Another area where climate risks are present is the management of water utilities, which could impact the water purity of rivers, lakes, and streams. By 2050, 57% of the global population will reside in regions with a water shortage for at least one month of the year. 5

6. How Will Sustainability Change the World in 2050? Net Zero 2050 Whate Is Net Zero? + Measures to lower emissions For example: -Invest in green technology Measures to remove emissions For example: -Forest expansions -Direct air capture Net Zero Balance between amount of GHG produced and removed from the atmosphere + = According to the Intergovernmental Panel on Climate Change (IPCC), emissions must peak before 2030 and reach worldwide net-zero emissions by 2050 to keep the temperature rise to 1.5 degrees Celsius below the pre-industrial levels. Net zero is specified when overall emissions are less than or equivalent to the emissions eliminated from the environment. Setting net-zero goals is simpler compared to accomplishing them. Fortunately, the circumstances and support needed to achieve these goals improve daily. And given the current momentum, there is a good possibility that we will reach the net-zero target by 2050. However, there is no other option. Many people believe that the greatest danger to humanity in the twenty-first century is climate change. Many people are already noticing its adverse effects. The effects of global warming include economic disruptions, political turmoil, conflicts, increased natural catastrophes, weather extremes, and threats to food and water security. This is quite literally a battle against time because the longer it takes the world to reach net zero, the more difficult it will be to stop climate change. All of these are entirely reliant on our capacity to reduce carbon emissions. Decarbonization is essential for life in an increasingly interconnected world where many countries have set net-zero goals. Many countries and large multinational corporations (MNCs) with extensive worldwide supply networks have pledged carbon-neutral supply chains. The Race to Zero has also attracted thousands of non- state players, including institutions and cities. 6

7. How Will Sustainability Change the World in 2050? Key Sectors for Decarbonizing Power & Energy Building power networks that satisfy demand and expanding renewable energy production is necessary for this industry’s decarbonization. Renewable energy sources can compete effectively with coal and natural gas because solar and wind prices have fallen significantly over the last ten years. This can have a significant impact on the large oil companies because they have the practical knowledge, supply networks, and funding to launch green energy-producing projects. The shift to net zero will become more appealing politically and economically in the future, due to the increasing oil costs and the energy security issue that have emerged considering the Russia-Ukraine conflict. talent, and manufacturing capacities are needed. Building a charging station network and better battery storage is essential for this industry to move toward net- zero emissions. For example, some of the raw materials used to make car batteries come from the Democratic Republic of the Congo, which has 50% of the world’s cobalt reserves, and Chile, which has 58% of the world’s lithium reserves. Agriculture & Food A recent United Nations (UN) research found that agricultural output is responsible for 80% of global deforestation and 31% of human-caused greenhouse gas pollution worldwide. The market for cultured meat is projected to be worth over $90 billion by 2030, and the trend toward plant-based meat is anticipated to continue. Since it produces 70% less carbon than conventional farming and is concentrated in urban areas, vertical farming can be a valuable tool for decarbonizing this industry. Investors are interested in climate-focused agtech because there is a market for climate-friendly investments and agricultural security. Mobility Not only is there more interest in electric vehicles (EVs) but also more money coming in. According to the PwC study, about two-thirds of climate technology investments went toward transportation and movement. But several significant changes are required to decarbonize the transportation industry. New supply networks, human Challenges and Obstacles to Achieving Sustainability Goals by 2050 Key Challenges to Achieving Sustainable Development Lack of Political Will Economic Constraints Social and Cultural Barriers Technological Barriers Global Cooperation It will take significant effort and collaboration across numerous industries to achieve sustainability objectives by 2050, which is a lofty goal. Although there has been some success recently, several significant problems and barriers must be resolved to reach a sustainable future. The following are some of the biggest obstacles and challenges in the path to achieving sustainability by 2050: Lack of Political Will The absence of political will on an international and national level is a significant obstacle to achieving environmental objectives. prioritize short-term economic benefits over long-term sustainability. They are also reluctant to implement measures that might impede economic development or hurt the interests of large businesses in their respective countries. Policies like carbon pricing, green energy subsidies, and emissions regulations face resistance to handling environmental issues like climate change. Economic Constraints The economic constraints that many countries and independent regulatory bodies experience are a significant barrier to reaching sustainability objectives. For instance, some emerging countries might not have the means or the technological expertise to implement strategies for sustainable development. Alternatively, some communities might face financial difficulties when executing green practices or technologies. Additionally, businesses continue to place a premium on maximizing profits and may be reluctant to engage in sustainable solutions if they are considered prohibitively costly or risky. Several governments 7

8. How Will Sustainability Change the World in 2050? Social and Cultural Barriers Goals for sustainability adjustments to social and cultural customs. For instance, decreasing consumption or changing conventional lifestyles may encounter opposition, while certain cultural practices may have a negative impact on the ecosystem. It may also be challenging for some groups to embrace sustainable practices or technologies due to their limited access to instruction or knowledge about sustainability. energy sources, like solar and wind power, might not be dependable or efficient enough to substitute fossil fuels entirely. A circular economy shifts or implementing sustainable infrastructure may also face technological challenges. also require significant Global Cooperation By 2050, sustainability objectives must be attained through unprecedented worldwide teamwork. This calls for collaboration between companies, civic society groups, and people alongside cooperation between governments worldwide. However, significant global pressures and conflicts could undermine international collaborations, and there might be disputes over allocating the costs and benefits of sustainability projects. Technological Barriers Even though sustainable technology has come a long way in recent years, several technical challenges remain to be surmounted. For instance, there are still problems with energy storage and delivery. Some renewable Outlook for Sustainability in 2050 It won’t be simple to handle the variety of changes brought on by climate change. New pandemics, extreme weather, mass migration, conflict, and natural catastrophes will put a tremendous amount of strain on governments, healthcare systems, and disaster assistance services around the world. The mortality toll is anticipated to increase to several hundred million or more if appropriate action is not taken in time. In other words, the world will be split in two: famine, wildfires, and illness on one side, and torrential rain, flooding, and high waves on the other. These dangers will cause mass movements, resulting in humanitarian crises, given that some regions of the world will be impacted more severely than others. There are methods for lowering the existing amount of CO2 in our atmosphere and decreasing our emissions. These include geological engineering, smog-eating surfaces, genetically modified plants, artificial trees, carbon upcycling, and carbon capture technology. As the saying states, “Every problem has a solution.” However, every possible answer frequently has a window of chance on it. If you miss that opportunity, the issue will only worsen and demand more extreme action. We can anticipate that the changes in our climate will be manageable if humanity can decrease its carbon impact between now and 2050. 8

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