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This year’s forecast of sustainability trends looks like a perfect storm (in a good way) of purpose-driven yet opportunity-driven progress. A Forrester analyst expected at least 10 companies to pay her more than $5 million in greenwashing fines, but the long-term outlook for meaningful environmental impacts is much brighter. Gartner researchers predict that political groups around the world will support the nation’s commitment to invest tens of trillions of dollars in climate change mitigation from 2025 to 2035. A more sustainable future. Below is a summary of their investment priorities.
As scope 3 emissions regulations increase, organizational leaders recognize the competitive value of connected data to track, report, and mitigate climate impact.
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Obtaining Accurate, High-Quality ESG Data
Environmental, social, and corporate governance (ESG) standards and regulations are becoming a dominant force in how organizations operate, affecting every part of their business. In the US, the SEC is set to enact more he ESG regulations for investors, and the UK plastic packaging tax is expected to transform global supply chains around the world. According to Deborah Kaplan, Global Head of Sustainability for SAP Customer Success, collecting and understanding large amounts of disparate data is the biggest challenge for organizations, regardless of their sustainability readiness.
“Companies need data transparency with granular granularity along the entire value chain. We need to build sustainability metrics into the process,” Kaplan said. “Customers are seeing us replace time-consuming and inaccurate manual approaches with holistic steering and reporting solutions like SAP Sustainability Control Tower. It enables companies to record, report and act on quality data across the value chain with assurance and auditing capabilities.”
IDC analysts predict that by 2024, 30% of organizations will use ESG data management platforms to manipulate ESG KPIs through a centralized system of record for reporting purposes and real-time operational decision support. I predict it will be These analysts say that within three years his ESG performance will be seen as the top three determinants of his IT equipment purchases. Over 50% of our RFPs include metrics on carbon emissions, material use and working conditions.
Connected data provides organizational accountability
As Scope 3 emissions regulations increase and continually change, organizational leaders recognize the value of connected data to track, report, and mitigate climate impacts. Gartner researchers say that customer expectations of environmental and social sustainability apply throughout the product lifecycle, stating that “purchasers will only buy from companies and suppliers who demonstrate that they have successfully delivered on their commitments. By purchasing, you will interact with your wallet.” The company found that 67% of organizations intend to hold leaders in their chain of supply accountable for defined environmental and social sustainability KPIs.
IDC analysts predict that by next year, 80% of G2000 companies will have carbon data and report their company-wide carbon footprint using quantifiable metrics. is 50%. Gartner researchers say that by 2027, 50% of the top 10 consumer goods manufacturers will have at least one “digital product passport” in their product category. Essentially a digital thread, Passport tracks product carbon footprint, waste, liability and risks, and shares information across the company and with suppliers and regulators.
Sustainability translates into business currency
A sustainable business is more than just reporting carbon emissions. Forrester expects five of his Fortune Global 200 companies to announce policies to limit travel for sustainability this year. They did not see businesses returning to business as usual, writing: [post-pandemic] Reboot to reassess existing travel practices by tracking travel emissions data. ”
Money issues are also driving sustainable business norms. Amid heightened SEC scrutiny, Forrester analysts expect public companies to “fix sustainability goals in corporate policies aimed at promoting environmentally sustainable behavior.” was IDC analysts believe that by 2026, regulation and sustainability-related financing will help more than 60% of global We expect to adopt a carbon footprint of
Sustainable business model innovation
Sustainability is good for business, not just because it reduces the risk of regulatory compliance. Gartner researchers say the ability to efficiently navigate the global regulatory environment and scale compliance systems gives companies a significant competitive advantage. These analysts urged business he leaders to think further ahead, saying, “After an intensive period of innovation in climate mitigation technologies already underway, scalable solutions and carbon replacement will be on the horizon for nearly two decades. Continued” predicted a “carbon flip”. base technology. ”
On the other hand, the short-term business outcomes of the sustainability wave are many. By next year, a quarter of organizations worldwide will demonstrate responsible leadership by increasing spending on sustainability-related digital technology by more than 25% from his 2022 level, IDC analyst I predict it will. Within three years, 45% of G2000 organizations will have sustainability operations integrated into their supply chains, reporting impact data effectively, reducing waste by 10% and improving their competitive advantage they said.
As sustainability has moved from tracking carbon footprint to company-wide commitments to meet global imperatives, organizations of all kinds are in the business of creating a healthier world. is. Indeed, it’s an advancement that helps us breathe a little easier and live longer.
Learn how to integrate sustainability into your business operations to create a future of zero emissions, zero waste and zero inequality.
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