Bain & Company Survey: Only 24% of Companies Ready for New Sustainability Regulations

According to recent research conducted by Bain & Company, a mere 24% of companies feel adequately prepared for forthcoming sustainability reporting requirements. This is a concerning statistic, as developing the necessary capabilities to collect, analyze, and report sustainability data, including the required technology, can take years. The study, based on a survey of over 300 executives, revealed that almost 90% of respondents acknowledged the importance of digital technology improvements for advancing sustainability goals. However, most companies admitted that they were not taking the necessary actions to achieve this. The findings from Bain’s research are particularly relevant as the global regulatory landscape is rapidly evolving, placing increasing pressure on companies to anticipate and meet additional reporting obligations. For example, the EU’s Corporate Sustainability Reporting Directive mandates that EU companies begin reporting their greenhouse gas emissions and other environmental factors by 2025. In California, large companies will be required to report Scope 1 and Scope 2 emissions by 2026, and Scope 3 emissions by 2027. These deadlines are fast approaching, considering the time required to establish the systems needed for compliance. Bain & Company partner Adam Cox emphasized the critical role of technology in helping companies meet sustainability commitments and comply with evolving regulations. Apart from carbon emissions, organizations must address other aspects of sustainability, such as water usage, waste management, and supply chain ethics. Achieving these goals necessitates investment in new technology systems, often requiring the acceleration of existing IT modernization initiatives. Additionally, technology plays a vital role in monitoring and analyzing the data necessary for setting sustainability objectives and understanding current performance, highlighting the need to align goals with existing technology roadmaps. Only about one-third of surveyed executives with ambitious sustainability targets believed they possessed the necessary technology to achieve them, indicating that technology can act as a bottleneck hindering companies from fulfilling their sustainability objectives. Resources: https://esgnews.com/bain-company-survey-only-24-of-companies-ready-for-new-sustainability-regulations/