These days, businesses are itching to release their environmental reports. These reports, which are usually issued annually, share how companies support sustainable business practices that positively impact the environment. Businesses also use these reports to disclose their progress towards carbon emission, waste, and water usage reduction targets. But why is reporting on the rise? Here are three key drivers increasing environmental reporting demand.
1. Growing Interest in ESG
In recent years, ESG investing has skyrocketed, causing businesses to proactively create strategies to address environmental, social, and governance-related risk factors that could impact long-term success. In 2020 alone, investments in ESG more than doubled to $51.1 billion. The ‘E’ pillar focuses directly on environmental issues, such as climate change preparation and cutting the use of natural resources. To keep up with demand, companies are leaning on reporting tactics to measure, track, reduce, and communicate their environmental impact.
2. New Mandate to Address Global Environmental Issues
The COVID-19 pandemic brought global environmental imperatives – such as climate change, waste management, and biodiversity – into the spotlight. Now, top investors like BlackRock are encouraging companies to do their part by reporting their environmental footprint – and then doing more to reduce it. Additionally, the new Biden Administration is sending a strong message that climate change is a crucial focus by re-joining the Paris Agreement.
3. Innovative Technology
The most vital accelerator of environmental reporting is technology. New technology makes it easier and more accessible for organizations to collectively track, reduce, and report their operational environmental impact. Particularly, AI and machine learning tools help companies stay on top of carbon emissions, water usage, and waste management efforts. For example, the Keter Pulse Commercial Service Monitor tracks your container fill level, so you’re not over-servicing and overspending on your waste management program.