Opinion
In this opinion piece, Katie Martin, director of sustainability and innovation at Avetta, explains that supply chain ESG risk management has historically been reactive, treating sustainability as a compliance exercise. With complex global networks and shifting regulations, reacting quickly is insufficient. A case of a retailer facing citations for unsafe working conditions and wage violations led to reputational and financial damage, prompting companies to embed risk management into daily operations and strategy. Siloed ESG responsibilities cause inefficiencies and blind spots, while shared responsibility and visibility across procurement, sustainability, legal and compliance enable earlier risk identification, evidence-based progress reporting, and anticipation of evolving expectations. Companies investing in shared visibility gain competitive advantage, reduce total cost of ownership, and avoid reputational risk. The article cites a large retailer implementing a cross-functional ESG governance model with executive and board oversight, integrating climate risks into enterprise risk management, and working with suppliers on energy, packaging, waste, transportation, product design and nature issues, resulting in quantifiable cost savings. The shift requires breaking down data silos but yields benefits that outweigh the effort.
The global carbon market is entering a critical phase, with governments expanding carbon pricing schemes, companies pursuing emission reduction targets, and the Paris Agreement supporting cross-border transfers of carbon assets. However, the legal infrastructure underpinning this market remains fragmented. Carbon credits are increasingly flowing across borders, but the laws governing their creation, ownership, transfer, and use remain confined to the national level. Regulators are also scrutinizing environmental claims involving carbon credits. Companies should focus on three major issues: the legal status and ownership of carbon credits, environmental integrity and accounting and claims risks, and the allocation of regulatory and performance risks in carbon contracts.
Under political and social pressure, many organizations are scaling back diversity, equity, and inclusion (DEI) initiatives, believing this reduces risk, but it may backfire. The U.S. Equal Employment Opportunity Commission (EEOC) continues to enforce anti-discrimination protections for women, and recent settlement cases show that compliance obligations have not changed. This article analyzes the relevant legal risks and proposes eight best practices based on EEOC guidelines to help HR leaders build equitable workplaces.
Global sustainability disclosure requirements are evolving at unprecedented speed, breadth, and political variability, with policy divergence at the U.S. federal and state levels, simplification of rules in the EU, and adoption of unified frameworks by multiple countries. Facing a fragmented regulatory environment, companies should treat reporting as a value-adding capability rather than a compliance burden, orienting toward stakeholder needs and establishing third-party assured disclosure systems to enhance resilience, optimize decision-making, and gain competitive advantage.
The second-hand technology market is expected to reach $262 billion by 2032. Companies need to shift the circular economy from a reporting obligation to a strategic core to balance sustainability and profitability.
This article explores how growing data center demand can act as a catalyst for the large-scale deployment of climate technologies. Through principles such as project co-location, energy park development, and operating during surplus grid periods, data centers and climate technologies can mutually benefit, improving project economics and accelerating the clean energy transition.
As 'invisible infrastructure,' advanced filtration technology is solving the recycling challenges of complex waste streams such as smartphone screens, aviation fuel, and electric vehicle batteries. This article, from the perspective of Pall Corporation experts, explores the application of this technology across five key industries, demonstrating how it achieves circular economy benefits without compromising product performance.
U.S. public pensions remain insufficient in addressing climate risks. The Sierra Club analysis points out that most large pensions lack clear strategies to direct capital toward climate solutions, and there are issues such as greenwashing and an overemphasis on clean energy.
The GHG Protocol recently solicited public comments on revisions to its Scope 2 guidance, proposing to require hourly matching for renewable energy purchases and tighten geographic boundaries. While the proposal aims to improve accounting accuracy, it could undermine the voluntary clean energy market, suppress corporate demand, and slow the development of wind and solar projects in the United States.
U.S. solar installations are growing rapidly, with 84% of new electricity in 2024 coming from solar and storage, but installations are concentrated in high-income communities. Low-income households have 14.7% higher carbon offset potential yet 47% fewer installations. Despite reduced federal funding, states like California and Massachusetts are still rolling out subsidies and community solar projects, which, combined with tools like GeoAI, could enable a fairer energy transition.