5 things we learned about the state of Green Business
Updated: Mar 21, 2022
Every year, Greenbiz releases a report reviewing the metrics of thousands of companies around the world. The report looks at factors such as circular economy, clean energy, and climate tech and how they influence the direction the business world is headed. The State of Green Business 2022 report focused a lot of attention on issues surrounding the pandemic such as how Covid has shaped the workplace, the disruption in the supply chain, and human rights. We reviewed the 2022 report and here are some insights on 5 things we learned:
The State of Net Zero
There has been a rise in net zero commitments but the speed at which these commitments are being achieved is lacking. The goal is to have companies commit to getting as close to net zero as possible by a deadline of year 2050. What is Net Zero? It is when as many greenhouse gases are being emitted are equal to the amount being taken from the air, and it is this point at which we can halt the advance of global warming. There has been a lot of talk about the push for net zero, but it seems as though many companies are not taking the timeline seriously.
There needs to be more of a sense of urgency and companies need a specific pathway and plans if we are to meet these deadlines. There are countless ways in which we can shift towards true zero targets such as tightening our reductions targets, prioritizing innovative technologies, diversifying clean energy resources, and utilizing energy storage.
Green Jobs & Skills
As we move towards a low carbon economy, more and more green jobs are being created and training to step into green jobs is becoming more important. The report notes that jobs aren’t generally either ‘green’ or ‘not green’, but rather will fall somewhere along a spectrum as they may have “green” elements. Greenbiz has come up with a measurement system for the “greenness” of jobs and skills. By measuring this, we will be able to see which jobs sectors need to be made ‘greener’ and where we need to make investment into green upskilling.
A circular economy approaches economic development by focusing on designing to benefit business, society, and the environment together. There is a global push to create a more circular economy, focusing on innovation and confronting climate change, creating value throughout the value chain, and a shift away from a linear economy where we produce and create waste, to circular design with renewable energy and no waste. Check out the Ellen MacArthur Foundation to learn more about circular economy around the globe, and visit the Circular Economy Institute to upskill in this increasingly important movement.
Renewable energy is one of the most important factors in creating a circular economy. By shifting to renewable energy, we are prioritizing our net-zero commitments, green jobs, and environmental protection. Now companies are figuring out how to match clean energy demand with supply such as through energy storage and diversifying sources.
ESG Regulation Reporting
ESG reporting refers to the full disclosure of information and data on a company’s operations within environmental, social, and corporate governance. It is becoming increasingly expected of the larger corporations, particularly by investors, however it has been difficult to regulate. In 2021 the International Sustainability Standards Board (ISSB) was formed as a means of providing a comprehensive global baseline of sustainability-related disclosure standards. It will encourage uptake of ESG reporting and will help standardize the requirements to help prevent greenwashing and false information.