As we have reported, in January 2024 (roughly 4 months from now), the EU will start requiring enhanced climate disclosures.

As we have also reported, other countries either have, or are finalizing, their own sustainability disclosure rules.

Per this article, 60% of UK companies will not be ready by the January start date.  Why does it matter to UK companies (not in the EU)?  They are Scope 3 vendors to companies in the EU. 

The biggest issue?  Their own vendors (who, fall under their Scope 3 designation).

Even if you are currently not impacted by the EU’s CSRD (Corporate Sustainability Reporting Directive), you will be, as sustainability reporting becomes mandatory around the world.

Your large clients are already struggling, due to not being able to find vendors that help them with their Scope 3 compliance.

This brings us to the question – Are you using Scope 3 as a growth tool?

• If you know this is coming….
• If you know your big clients need vendors that are sustainable and have a carbon program….
• If you know this is only going to become a bigger issue….
• If you know consumers (both B2B and B2C) reward certified sustainable companies….
• If you know certified sustainable companies make more money….
• Do you get in front of it and take market share by satisfying the needs of your B2B clients?
• Or do you let one of your competitors do so?

If you are interested in learning more, watch this master class and contact us.

As we have reported, the EU is pushing forward with its net zero emissions by 2050 goal; and will introduce its Carbon Border Adjustment Mechanism (CBAM) a few weeks from now, on 1 October 2023.

In effect, the CBAM will put a carbon tariff on products sold into the EU.

The UK, US, Japan and Canada are next in line, with other countries to follow.

This article talks about the pending impact on India, where the CBAM covers approximately 24% of all exports.  In effect, if not slowed, the CBAM is forecast to have a crippling effect on Indian exports.

India knew this was coming but is now scrambling to find ways to soften its impact.

Now think about the future of your business and how it plans to compete in the coming years.  How will you differentiate from your competitive peers?  What will be the key drivers of consumer decisions and government compliance?

We know the CBAM is just one of the first of many sustainability compliance programs that will be implemented around the world.  Is it a wake-up call for your business to make the needed changes to compete in the coming years?

Watch this master class and contact us if you would like more information.

As we have repeatedly reported, the world’s governments are moving swiftly towards compliance programs for sustainability/climate.

The EU already has a program in place, as do some other governments.

In the United States, the SEC is expected to finalize its climate disclosure rules as early as October.  However, many US corporations are trying to get ahead of it and are using the EU program as a template for preparation. 

Per this article, 69% of leaders of big US corporations say they are ready for the new rules.

Is your company ready?  Are you in compliance? 

Remember our prior posts about Scope 3 – if you are a vendor, you are part of your client’s Scope 3 emissions program.  For them to pursue Net Zero or comply with new rules, they will need you, as one of their Scope 3 vendors, to be in lock step.  We are already assisting a number of our clients who have received notices from their clients on Scope 3 reporting.

You can either lead, and take market share; or follow, and lose market share.

Watch this master class and contact us if you would like more information.

This article is reporting the same accelerated demand from consumers for legitimate corporate sustainability action as we are seeing:

• Consumer demand for corporations to be legitimately (ie, certified) sustainable has accelerated dramatically since the pandemic;
• Shoppers are using sustainability as THE gating item for their purchase decisions;
• Just talking about being sustainable, or saying your company ‘aspires’ to be sustainable, is no longer good enough and damages your brand and consumer trust;
• Saying “yes we are sustainable” or “we will be a leader in sustainability by 2030” means nothing to the consumer and will lead to the consumer leaving the brand;
• Playing it safe is playing to lose.  You need to play to win and use sustainability as a competitive differentiation tool;
• Only when consumers perceive you as authentic via your sustainability actions will they align with your brand;
• Brands that have legitimate sustainability programs can differentiate from other brands and take market share.

The Edenark Group ISO 14001 is the world’s premier sustainability certification program for small to mid-sized organizations (SMEs).  Our entire model is based on cost-effectively helping SMEs use the world’s top sustainability certification to differentiate from competition and take market share.  Watch this master class and contact us if you would like to learn more.

Has sustainability certification become table stakes for your business?  If you are selling to larger companies, the answer is – probably so.

This GreenBiz article, titled “Carrot, stick, or scissors:  Is it time to leave suppliers behind?” makes these points:

• “Pressure is increasing for (large) companies to start to seriously act on reducing carbon emissions from their supply chains…..In March, the U.S. Securities and Exchange Commission proposed a rule that would require companies to report emissions including Scope 3.”
• “SMEs need….to realize that these sustainability commitments will become table stakes to continue working with larger companies leading the push to net-zero operations.”
• “…we’re going to walk away from suppliers who, once that analysis is done, aren’t meeting what our standards are to get to net zero by 2030, which in some ways feels like it’s tomorrow.”

If the larger companies are going to start demanding their SME suppliers become certified sustainable in order for the larger client organization to meet its sustainability commitments:

• Are there cost-effective sustainability certification programs available to these SMEs?
• Are SMEs using these programs to become certified sustainable?
• Are SMEs partnering with other SMEs in the supply chain and successfully promoting their combined sustainability to clients and prospects, to take market share?

The answer to all these questions is “Yes”.

This Master Class offers what SMEs should look for in a sustainability certification program; and the below are examples of three small companies, all in the same supply chain, all certified sustainable, and all cross-promoting their combined services to present a powerful supply chain option for for organizations who need their suppliers to be certified sustainable.

• DataSetGo
• Wholesale Payroll
• TruPayroll

Per this article, the sustainability rules in the CSRD, that we have been talking about for some time in our posts, are expected to impact small companies along with large companies. 

As the article states, at Cannes LIONS this year, there was a ‘responsibility hall’ that included sustainability initiatives, and each award asked for information on the ad entry’s sustainability.  This is putting more pressure on companies to exaggerate. 

The Green Claims Directive (GCD), a proposed new EU law, will impose penalties on companies making claims they cannot support.

The Directive on Empowering the Consumers for Green Transition is another such bill.

Simply put, we all know consumers want our businesses to be sustainable, governments are establishing sustainability laws and your B2B clients are in need of sustainable vendors. 

We also know sustainable businesses make more money. 

The pressure to show you are a sustainable business is only going to grow and the penalties for greenwashing will also grow.

The question – Do you ignore and let others lead; do you greenwash until caught; or become certified sustainable and take market share while also doing the right thing? 

Becoming certified sustainable does not have to be hard or expensive.  Watch this master class and contact us with questions.

Recently, our CEO was shown the website of a lighting contractor that had purchased one of those vanity awards (where you pay money and they give you a fictitious title). In this case, the company had purchased a sustainability award and was proudly displaying it on their website.

It is only a matter of time before that lighting contractor is exposed for greenwashing. When it happens, the negative impact on their brand will be significant.

An ironic part of this is that, in their desire to capitalize on consumer demand for companies that are sustainable, they actually paid about as much for the fictitious award as they would have paid for a legitimate certification.

If you think all this talk about risk is overstated, ask the airlines. Per this article, there are greenwashing lawsuits against airlines on three continents – North America, Europe and Australia.

The electrical contractor and the airlines knew what you know – there is money to be made by saying you are sustainable.

Should you wish to do it the right way, watch this master class and contact us.

Most of us are beginning 2024 budget season….and will be trying to find a way to achieve next year’s growth goals.

Per an 8 country (US, Germany, Italy, France, Japan, China, India and Brazil) study by Boston Consulting Group, discussed in this article….

• 80% of participants reported considering sustainability when making a purchase
• 70% are suspicious of potential greenwashing activity by businesses
• 20-43% are ‘silent stakeholders’, which are defined as consumers willing to be persuaded to choose a product that makes a credible and compelling sustainable statement

When you are planning for 2024 and looking for low hanging fruit, think about the combination of these three points – the vast majority of consumers are looking for sustainable companies but are wary of those that falsely claim they are sustainable; and 20 – 43% of them are ‘up for grabs’ in that they are willing to be convinced to choose your product if you can convince them you are legitimately (ie, certified) sustainable.

Think of the impact that 20-43% would have on attaining your growth objectives.

Edenark Group can help you become certified sustainable, differentiate from your competitive peers, and appeal to those consumers.  Here is a flyer on the benefits of our program.

Article by Check Odulio, contributing writer

Greenwashing is on the rise, and it poses a direct threat to your business.

This deceptive practice involves making exaggerated, unsupported, or false claims about a company’s environmental initiatives, leading consumers to believe that the company is more environmentally responsible than it actually is.

As businesses strive to keep up with the increasing demand for sustainability, Greenwashing is becoming an alarming issue not only for consumers but for fellow businesses like yours.

Two Crucial Ways Greenwashing Can Impact Your Business:

1. Enabling Greenwashing Companies to Exploit an Ever-Growing Customer Base

77% of consumers prioritize sustainability as a key deciding factor in their purchase.  That’s three out of four of your prospects.

Does this preference translate into actual purchases or merely remain as survey responses?

The answer is clear: consumers follow through with their wallets. This buying preference is evident in the fact that 93% of consumers either maintained or increased their purchases of sustainable products.  +25% of consumers have already switched vendors due to sustainability; the next 30 – 40% is in play right now.  Someone is going to win this business.

How big of an industry are we talking about? Per this FutureTense talk, approximately $100 Trillion will be spent on sustainability-related products and services in the coming years.

Unfortunately, amid this promising industry growth, some companies intentionally engage in greenwashing to capture a significant share of this multi-trillion-dollar market.  The good news is 80% of consumers DISBELIEVE a company’s sustainability claims if not supported by a valid 3^rd party verification.  But this does not stop the greenwashing, due to the huge financial potential.

The question is, even if they win 20% of the consumers looking for sustainability products, how much of your market share are you willing to let these greenwashing competitors erode?

Further, what if a competitor becomes certified as sustainable and goes after your clients with a genuine sustainability claim?  How much time and money will it take to win back those clients after losing them?

2. Risks of Reputation Damage and Legal Penalties Due to Greenwashing

Suppose you decide to adapt to the preferences of customers with the genuine intention of reducing your company’s environmental impact. Great! But be aware that you still run the risk of falling into the trap of greenwashing and the penalties that come with it.

Any unsubstantiated sustainability claims within your business practices can severely tarnish your reputation and ultimately lead to customer attrition. Consumers are now better informed in this realm, making them more skeptical of companies’ environmental claims. As we reported above, 80% of them do not believe a company’s claims that are not verified via a 3^rd party certification.  Further, there is an increasing number of sustainability advocacy groups hunting greenwashers.  Here is an example on the global stage.  So, the risk of being caught is higher than ever before.

Tomas Gonsorcik, co-chair of the American Association of Advertising Agencies’ strategy committee states,

“Given the volume of green, rainbow, and woke washing in the industry and accusations of all that in recent years, I believe any brand that is looking into its future and trying to drive sustainable growth for its business needs to get real about these claims,” he said. “I think regulation should complement that.”  

Adding to the brand-image damage of being exposed as a greenwasher, there are now fines attached to same. Many countries already have established fines and many more will follow.  As an example, the FTC is now considering setting rules to gain the ability to levy civil fines on deceptive environmental marketing claims. This civil penalty can reach $50,000 per violation.

Greenwashing is a grave concern that can jeopardize your SME business, both externally and internally. Seeking third-party certification can provide a solution. Pursuing the world’s premier environmental sustainability certification program, the Edenark Group ISO14001 Certification Program, offers not only tangible evidence to support your sustainability claims, helping you win those consumers looking for certified sustainable companies; but also facilitates actual positive environmental changes that help the planet and all your stakeholders.

Don’t let the threat of greenwashing linger over your business.

Schedule a call with Edenark Group to safeguard your integrity and differentiate from your competition.

Per this McKinsey study, companies that have a Triple Play (Growth + Profit + Sustainability) dramatically outperform their peers on Total Shareholder Return (TSR).

• 36% of companies that lagged on sustainability/ESG showed negative growth; while 0% of the Triple Play companies showed negative growth

• 19% of the companies that lagged on sustainability/ESG grew by more than 10%; but 53% of the Triple Play companies grew by more than 10%

• Having the Triple Play of Growth + Profit + Sustainability delivers 7 points in TSR versus peers.  That’s not 7%, it is 7 points – ie, a 12% TSR versus a 5% TSR.   In most cases, that 7 points is more than double the competition.

• Sustainability/ESG will not save a flawed company; but it will help a company perform better

If you are looking at your 2023 performance against budget and would like to perform better, contact us via this form.