By 2024, half of the region’s largest corporates will capture and report their carbon footprint in a meaningful way
Sustainability strategy and technology investments in Asia Pacific (A/P) is accelerating, according to International Data Corporation (IDC) Asia.
By 2023, 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.
And by 2024, 50% of Asia-based 2000 (A2000) companies will capture their carbon data and report their enterprise-wide carbon footprint using quantifiable metrics, compared with 30% today.
These are just two of IDC’s predictions in a new report.
“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,” says Melvie Espejo, research director, Sustainability, IDC Asia/Pacific.
”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.”
Raft of ESG rules
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.
|IDC’s top ten sustainability predictions identify the most important trends and related areas of opportunity in Asia/Pacific* in the next six years (2024-2028):|
|#1: Reporting Enterprise-wide Carbon Footprint: By 2024, 50% of A2000 companies will capture their carbon data and report their enterprise-wide carbon footprint using quantifiable metrics compared with 30% today.|
|#2: 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.|
|#3 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.|
|#4 Circularity Requirements: 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.|
|#5: ESG Data Management Platforms: By 2024, 30% 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.|
|#6: Chief Sustainability Officer Assignments: By 2026, 50% 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.|
|#7: ESG aaS: 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.|
|#8: Experiencing Improved ROI: By 2026, 70% of organisations with integrated planning and execution will achieve improved operational efficiencies leading to distinctive business benefit of improved ESG and financial performance.|
|#9: 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.|
|#10: By 2023, 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.|