Per this article in Forbes, although it is expected that at least ten companies will incur at least $5 million in greenwashing fines, there appears to be movement towards positive environmental impact.
A few key points:
- Better ESG data programs will be created and used
- 80% of large companies will start capturing and reporting their own carbon emissions (up from 50% currently). This is going to impact their demands on vendors (see below).
- Scope 3 reporting (ie, your company needing to report carbon emissions to your clients) will increase as 67% of organizations intend to require vendor reporting
- Let’s say that one again – If you are a vendor to a larger company, or a vendor to a vendor, there is a 67% chance they are going to require you to start reporting your carbon emissions
- Travel will remain soft, driven by sustainability requirements
- Public companies will incorporate goals that drive sustainability behavior (putting more pressure on their vendors who are not sustainable)
- Companies that are sustainable will be better able to address global regulations and have a decided competitive advantage
- The current climate-related trend is expected to continue for at least 20 years, as implementation of programs will take that long. So, this is not a seasonal trend that is going away.
- Within 3 years, 45% of the G2000 (the 2000 largest companies in the world) will have fully integrated sustainable supply chains
- Let’s say this one again – If you are serving one of the 2000 largest companies in the world, or serving a vendor of same, there is an almost 50% chance that within the next three years, to retain their account, you will need to become certified sustainable
The acceleration of global action over the past 36 months has been stunning. It is quite possible that many of the above timelines will be shortened.