Competitive Advantage Is the Top Motivator for Tackling Corporate Emissions

The opportunity for productor brand differentiation is a top motivator for tackling corporate emissions, according to a new report, 2024 Trends in Corporate Emissions Management, from Optera. Thirty-seven percent ranked it as their top priority, while 76% ranked it in the top three. 

Additionally, 66% of respondents would use product-level emissions data to communicate with consumers, indicating a strong link between emissions management and marketing strategies.

The survey also reveals that emissions reporting, verification and science-based target setting are rapidly becoming standard practices.  The survey found:

• 91% of respondents report emissions either publicly or to regulators and customers;
• 75% have their emissions verified by a third party;
• 73% have set a science-based target;
•   47% of companies with over $10 billion in revenue not only report annually but also track decarbonization progress throughout the year.

"The survey results clearly demonstrate that sustainability is no longer just a buzzword, but a core business strategy,” said Tim Weiss, Optera CEO, in a statement. “Companies that can gather and take action on quality emissions data will separate themselves from their competitors." 

Supply chain emissions have become the new frontier for corporate sustainability programs, The survey found:

●   Nearly 70% of respondents are actively working across their value chain to help suppliers decarbonize.

●   70% of respondents would use product-level emissions data to inform supplier and procurement decisions, rising to 80% among companies with over $10 billion in revenue.

●       46% of companies have set ambitious science-based targets that cover their supply chain emissions

 “Addressing supply chain emissions is critical to meeting overall sustainability goals. The commitment to decarbonization is reshaping supplier relationships and procurement strategies,” said Weiss.

This year’s survey also showed persistent data management challenges, with 40% of respondents citing data gathering as the most challenging aspect of adherence to climate regulations. The number rises to 55% for companies with revenues above $10 billion, highlighting a significant pain point in emissions management for enterprise organizations.

Notably, 60% of respondents indicated an interest in using AI (with human oversight) for report generation and forecasting decarbonization impacts, reflecting a growing interest in AI approaches to the complexities of emissions reporting.