Per this IDC article, sustainability is accelerating at a rapid pace in Asia/Pacific. Here are ten predictions for this year, and the next four. Each of them, on their own, would suggest how fast sustainability and ESG are advancing. But, together, the story is quite amazing. If you are in this market or serving this market, even as a SME, and are not certified sustainable, you are at a disadvantage.
#1: Third Party Risk Management & ESG: By the end of this year, ESG performance will become a standard component for third-party risk assessment with 20% of A2000 companies placing greater weight on these risks than security, financial, or operational risks.
#2: Reporting Enterprise-wide Carbon Footprint: By end of next year, 50% of A2000 companies will capture their carbon data and report their enterprise-wide carbon footprint using quantifiable metrics compared with 30% today.
#3: ESG Data Management Platforms: Also, by the end of next year, 30% of A2000 companies will leverage ESG data management platforms to steer ESG KPIs via a centralized system of record for reporting purposes and real-time operational decision-making support.
#4: Datacenter ESG Disclosure: By 2025, more than 50% of A2000 organizations will require datacenter providers to disclose to them their energy usage, use of renewable energy sources, and recyclable IT equipment.
#5: ESG aaS: Also, by 2025, 30% of ESG services engagements will require a managed services component to better address the long-term nature and intense data needs of sustainable transformation and ESG reporting.
#6: Changing RFP Requirements: By 2026, ESG performance will be viewed as a top 3 decision factor for IT equipment purchases and over 50% of RFPs will include metrics regarding carbon emissions, material use, and labor conditions.
#7 Circularity Requirements: Also, by 2026, circularity will become a key component of product lifecycle management (PLM), and 60% of APJ organizations will require their IT equipment vendors and partners to provide end-to-end visibility of their sustainability process.
#8: Chief Sustainability Officer Assignments: Also, by 2026, 50% of A2000 companies will have assigned a chief sustainability officer responsible for meeting their organization’s ESG goals and making ESG-related IT purchasing decisions.
#9: Experiencing Improved ROI: As the final one in 2026, 70% of organizations with integrated planning and execution will achieve improved operational efficiencies leading to distinctive business benefit of improved ESG and financial performance.
#10: Rise of Social Sustainability: By 2027, 40% of use cases for sustainability/ESG software in APeJ will have a strong focus on social sustainability topics due to organizations’ more integrated approaches to ESG.
*This data on Asia/Pacific companies does not include Japan