Top 10 sustainability predictions for 2023 and beyond
Sustainability strategy and technology investments in Asia/Pacific excluding Japan (APeJ) are fast becoming a key factor for companies across the board.
By 2024, 50 per cent of Asia-based 2000 (A2000) companies will capture their carbon data and report their enterprise-wide carbon footprint using quantifiable metrics compared with 30 per cent today, reveals a new report by global market intelligence firm International Data Corporation (IDC).
In Asia, the regulations moving sustainability/ESG performance disclosures from voluntary to mandatory, presence of regional agreements and high-level sustainability commitment projects, and mainstreaming of sustainability have changed how products and services are produced, procured, and consumed.
These drivers of sustainability have, in turn, increased demand for more innovative sustainability technologies, and better ways of doing business for technology providers and users.
The report titled 'IDC FutureScape : Worldwide Sustainability/ESG 2023 Predictions — Asia/Pacific (Excluding Japan) Implications', unveils top ten sustainability predictions that identify the most important trends and related areas of opportunity in APeJ in the next six years (2024-2028).
Reporting Enterprise-wide Carbon Footprint: By 2024, 50 per cent of A2000 companies will capture their carbon data and report their enterprise-wide carbon footprint using quantifiable metrics compared with 30 per cent today.
Changing RFP Requirements: By 2026, ESG performance will be viewed as a top three decision factor for IT equipment purchases and over 50 per cent of RFPs will include metrics regarding carbon emissions, material use, and labour conditions.
Datacentre ESG Disclosure: By 2025, more than 50 per cent of A2000 organisations will require datacentre providers to disclose to them their energy usage, use of renewable energy sources, and recyclable IT equipment.
Circularity Requirements: By 2026, circularity will become a key component of product lifecycle management (PLM), and 60 per cent of APJ organisations will require their IT equipment vendors and partners to provide end-to-end visibility of their sustainability process.
ESG Data Management Platforms: By 2024, 30 per cent of A2000 companies will leverage ESG data management platforms to steer ESG KPIs via a centralised system of record for reporting purposes and real-time operational decision-making support.
Chief Sustainability Officer Assignments: By 2026, 50 per cent of A2000 companies will have assigned a chief sustainability officer responsible for meeting their organisation's ESG goals and making ESG-related IT purchasing decisions.
Third Party Risk Management & ESG: By 2023, ESG performance will become a standard component for third-party risk assessment with 20 per cent of A2000 companies placing greater weight on these risks than security, financial, or operational risks.
ESG aaS: By 2025, 30 per cent 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.
Experiencing Improved ROI: By 2026, 70 per cent of organisations with integrated planning and execution will achieve improved operational efficiencies leading to distinctive business benefits of improved ESG and financial performance.
Rise of Social Sustainability: By 2027, 40 per cent of use cases for sustainability/ESG software in APeJ will have a strong focus on social sustainability topics due to organisations' more integrated approaches to ESG.
"The latest results out of COP27 (Conference of the Parties of the United Nations Framework Convention on Climate Change) that says we just recorded the largest global green house (GHG) emissions annual level in 2022 have really galvanised the movement towards proactive and meaningful actions towards sustainability.
"No one can afford to just report on sustainability for the sake of saying ‘me-too’ anymore. Quantifiable, transparent and audit-friendly actions are demanded by stakeholders on both sides of the demand and supply equation," says Melvie Espejo, Research Director, Sustainability, IDC APeJ.