According to Optera’s second annual survey of corporate sustainability leaders, sustainability initiatives have seen significant advancements over the past year. All executives surveyed have either implemented sustainability initiatives or are actively developing plans.
Over 75% of respondents identified the opportunity for product or brand differentiation as a primary motivator for addressing corporate emissions. Preparing business practices for a low-carbon future was the second most significant motivator.
Emissions Reporting and Verification Becoming Standard
The survey also revealed that emissions reporting, verification, and science-based target setting are quickly becoming standard practices. A staggering 91% of respondents report emissions either publicly or to regulators and customers, and 75% have their emissions verified by a third party. Furthermore, 73% have set a science-based target.
Despite these advancements, data management challenges persist, with 40% of respondents citing data gathering as the most challenging aspect of adhering to climate regulations. This figure rises to 55% for companies with revenues above $10 billion, indicating a significant hurdle in emissions management for large-scale organizations. Interestingly, 60% of respondents expressed interest in using AI (with human oversight) for report generation and forecasting decarbonization impacts, reflecting a growing interest in AI solutions to the complexities of emissions reporting.
Sustainability initiatives have become a new competitive edge in corporate strategy, with businesses focusing on differentiation and future-proofing practices to address emissions and contribute to a low-carbon future. The adoption of emissions reporting, verification, and science-based target setting is on the rise, but challenges in data management persist, especially for larger organizations. Overall, the survey highlights the evolving landscape of corporate sustainability efforts and the increasing interest in AI solutions to enhance emissions reporting capabilities.
