1. A turning tide for greenwashing. RepRisk’s latest report reveals that greenwashing cases—where companies mislead about their environmental impact—have decreased for the first time in six years, signaling a shift in corporate behavior likely due to growing regulatory scrutiny. The report, which analyzes over 150,000 daily data sources, found a 12% decline in greenwashing cases from 2023 to mid-2024. However, severe incidents have surged by 30%, suggesting that while overall numbers are down, high-risk cases are rising. The European Union led the decline in cases with a 20% drop, driven by new regulations, while cases in the U.S. increased slightly amidst ESG politicization. The Oil and Gas sector had the most cases, though Banking and Financial Services saw the largest drop. RepRisk warns that greenwashing remains a reputational risk for companies, as stakeholders grow more vigilant in identifying misleading claims.
2. CFOs key drivers of corporate sustainability initiatives. A Deloitte survey has highlighted the growing role of CFOs in sustainability reporting across the Asia-Pacific, with 32% of companies identifying CFOs as accountable for sustainability initiatives. While CFOs are pivotal in navigating the region’s complex regulatory landscape, 60% of companies struggle to forecast the necessary resources for emerging reporting standards. Despite these challenges, 35% of companies report increased revenue and innovation from sustainability efforts. Deloitte’s report emphasizes the need for enhanced processes, data management, and people resources to meet sustainability goals. CFOs are critical to leveraging sustainability data not just for compliance but to drive long-term business value and resilience.
3. Corporate buyers boost demand for carbon removal credits. By 2030, it is expected that at least 60% of carbon credit portfolios will be comprised of carbon dioxide removal (CDR) credits. This indicates a growing demand for durable CDR credit portfolios among corporate buyers.
According to a recent Global Net Zero Pulse survey by Nasdaq, by 2030, 31% of corporate buyer respondents plan to reduce their emissions by up to 60% before using carbon dioxide removal (CDR) credits to address the remaining emissions. Additionally, 30% of respondents expect to reduce their emissions by up to 40% without using CDR credits. This shows a trend where companies are increasingly adopting alternative strategies to mitigate and reduce their emissions, but still recognize the need for CDR to handle residual emissions.
4. Driving innovation in climate risk research. S&P Global has launched a new Climate Center of Excellence within its sustainability unit, S&P Global Sustainable1, to advance research and methodologies on climate, environmental, and nature-related issues. The center will collaborate across the company’s divisions, including Market Intelligence, Ratings, and Dow Jones Indices, to provide science-based insights for investors and sustainability professionals. The center will focus on complex areas like physical climate hazards, probabilistic risk modelling, and supply chain exposure while fostering partnerships with academic institutions. S&P aims to drive innovation and support market intelligence on climate risks, leveraging interdisciplinary expertise to address emerging climate challenges.
5. Top 10 pressures keeping board directors awake at night. Competent Boards’ bespoke board training sessions more often than not uncover consistent themes. Boards today are facing multiple challenges such as economic uncertainty, geopolitical risks, and inflationary pressure. Climate governance and the rapid rise of digital transformation, including AI, are also reshaping how companies operate. Companies are more vigilant about greenwashing than ever before, having witnessed a string of significant fines levied on numerous corporate players around the world over the last 24 months. These are real everyday pressures keeping board members on their toes, and shaping the future of business strategy.
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